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Container spot rates still falling, but gently, thanks to capacity discipline

Container spot freight rates on the main east-west trades all declined over the past week, the surest sign yet that this year's peak season is past its apex - at least in terms of pricing. Drewry's World Container Index (WCI) recorded spot rate declines in the headhaul directions across all three of its main east-west trades. The WCI's Shanghai-Rotterdam leg dropped 1% week on week, to finish at $4,824 per 40ft, while the Shanghai-Genoa leg saw spot rates decline 5% over the previous week, to end at $5,988 per 40ft. Forwarders on the trades expect further falls over the coming weeks, with carriers already beginning to offer discounts on spot shipments out of Asia for the remainder of July and into August. However, this is largely with the caveat that the declines are likely to be gentle, rather than a precipitous price crash. "While there are rate reductions, they're still at a steady pace, with carriers continuing to control allocation agreements - albeit with some flexibility," one forwarder told The Loadstar today. Today's Shanghai Containerised Freight Index (SCFI) - which records rates quoted for the forthcoming week and, as such, can indicate the behaviour of the following week's WCI (as it did last week) - supports this view, showing spot rates to North Europe and the Mediterranean down 3%. One factor that may have prolonged this year's peak was the "roll pools" that built up in the China when demand peaked around a month ago, but they appear to have been cleared quicker than many forwarders feared, although loading operations in some Chinese ports were recently affected by Typhoon Bavi. "There are still a few issues in China main ports which vessels are omitting, although I am hearing carriers' roll pools are reducing and nearly cleared," the forwarder added. Meanwhile, Drewry said carriers had already begun to respond to rate declines with new capacity management. According to Drewry's Container Capacity Insight, four blanked sailings are scheduled on the Asia-Europe trade route next week, two more than last week, reflecting an increase in capacity available in the market. With easing demand and increased capacity, Drewry expects rates to decrease slightly next week. It was a similar picture on the transpacific, where the Shanghai-Los Angeles leg decreased 6%, to $5,878 per 40ft, while the Shanghai-New York route was registered is first decline since the end of April and dropped 4% week on week, to $7,598 per 40ft. Meanwhile, today's SCFI shows its Shanghai-US west coast base port route down 3%, and down 2% to the US east coast, indicating further falls could be on their way next week. Linerlytica said earlier this week: "Transpacific spot rates to the US west coast are easing as additional extra loader capacity has been added, but rates to the east coast are holding up better, with limited new capacity additions." US west coast forwarder Freight Right noted that some carriers had offered discounts this week, at around $5,000 per 40ft into the west coast, although "these represent specific carrier promotions rather than a market-wide standard". "Carriers recognised that peak-level rates, such as $8,000 per 40ft, were unsustainable long-term, and proactively lowered prices to stimulate volume and maintain vessel utilisation," it added. "Urgent demand has cooled significantly as shippers that needed to move peak-season goods ahead of deadlines have already done so, leading to lower overall volume." The one question remaining is what impact the new tariff levels announced by the White House last night will have on demand. "Clarity on impending US tariff policy will be the primary driver over the next one-to-two weeks - a stringent tariff rollout could induce a secondary rush of bookings, whereas mild or delayed updates may prolong the current lull in volume," Freight Right said. This could also hit the transatlantic trade, which this week also saw another week of gentle declines, with the WCI's Rotterdam-New York leg registering in its third week of falls, ending at $2,635 per 40ft, 1% down on the week before.

Sun PhuQuoc Airways to use SmartKargo platform

Sun PhuQuoc Airways has signed an strategic partnership agreement with SmartKargo to use its cloud-native air cargo management platform as the passenger airline develops its cargo operations. The Vietnam-based carrier signed the agreement with US headquartered SmartKargo on 21 July and the platform will equip the airline with end-to-end cargo capabilities, delivered through a single, unified cloud architecture. The airline will use the platform to support its efforts to establish a fully digitalised cargo operation that can expand in tandem with its expanding route network. Cargo transportation is expected to become an increasingly significant component of the airline's commercial strategy as it expands, boosting network efficiency, growth and long-term operational competitiveness. The airline's introduction of Airbus A330 widebody aircraft from September 2026 will significantly increase belly cargo capacity across its international routes, making the deployment of a robust, scalable cargo management platform a strategic priority at this stage of growth, said SmartKargo. At the same time, Vietnam's air cargo sector is growing, underpinned by the country's robust export economy, rapid e-commerce adoption, and its emergence as a strategic manufacturing and logistics hub in Southeast Asia. Truong Ngo Quoc, chief information officer, Sun Phu Quoc Airways, said: "We are building Sun Phu Quoc Airways' cargo business with a clear mandate: to be technology-led, commercially agile, and ready to scale. "After a rigorous evaluation, SmartKargo stood out as the partner that could not only meet our requirements today but grow with us as our network and ambitions expand. "Their platform gives us the digital infrastructure to compete on a regional and global stage, and we look forward to bringing a new standard of cargo excellence to Vietnam's aviation market." Olivier Houri, chief revenue officer, SmartKargo, said: "Southeast Asia represents one of the most dynamic and high-potential air cargo markets in the world, and Vietnam sits at the very heart of that opportunity. "We are proud to partner with Sun Phu Quoc Airways as they chart an ambitious course for their cargo business. This agreement is a testament to our shared belief that technology is the most powerful lever for building a cargo operation that is both commercially competitive and operationally excellent. We are committed to being the platform that powers their success."

Carriers roll out hefty surcharges as demand rises in 'hot' Indian markets

Container lines serving Indian trades are taking advantage of massive capacity demand from local exporters. According to industry updates, container freight rates from India to the US and Europe are at their highest levels since the Red Sea disruption began. And major carriers are now rolling out a flurry of hefty shipping surcharges on Indian container bookings across tradelanes to maximise earnings in the hot market. Marseille-based liner CMA CGM has announced a peak season surcharge (PSS) of $1,500 per box for Indian cargo to North Europe and the Mediterranean, starting today, claiming it was necessary "to provide customers with reliable and efficient services". The carrier has already levied a $1,000 per container PSS on India-Red Sea cargo bookings, since 18 July, and has announced a PSS of $5,000 per container on all bookings for shipments to the US east and Gulf coasts from 15 August. Meanwhile, MSC has imposed a congestion surcharge of $500 per container on Indian imports from North Europe, apparently an attempt to recover additional costs incurred through persistent terminal congestion and inland delays at Indian ports, especially JNPA (Nhava Sheva) and Mundra, an issue linked to additional transhipment volumes amid Persian Gulf port disruptions. "Due to current market conditions and the limited capacity available to meet demand, MSC will apply a congestion surcharge on the trade from Northern Europe to Indian Subcontinent in order to maintain its services at the required level," the world's largest container line told customers. Maersk joined that surcharge race by announcing a steep 'container overweight penalty' for boxes shipped from India's ports of JNPA, Mundra, Pipavav, and Hazira to North Europe and Israel. Those with a gross weight exceeding 22 tons will attract a fee of $2,000 per teu from 1 August. Pushpank Kaushik, CEO and head of business development for Indian subcontinent, Middle East & SEA at Hyderabad-based Jassper Shipping, believes the recent surge in surcharges is a consequence of the supply chain disruption plaguing key trade routes amid the Middle East crisis. "For [Indian] exporters, the impact goes beyond higher freight bills," he told The Loadstar. "The disruption has reduced effective capacity, leading to equipment shortages, congestion at ports, and higher operating costs. As these pressures build, carriers are passing on costs through emergency, peak season, detention, and other surcharges." Meanwhile, the free-trade agreement (FTA) between India and the UK this month presents an opportunity for container lines to lift higher cargo volumes in both directions, industry sources believe. That's because India's labour-intensive industry verticals - primarily textiles, leather, gems and jewellery, chemicals, and marine products - are now thought to have gained duty-free market access into the UK. "The India-UK FTA is expected to enhance the global competitiveness of Indian products by enabling exporters to access the UK market on more favourable terms," said SC Ralhan, president of the Federation of Indian Export Organisations.