Container shipping costs from Asia have climbed sharply since the outbreak of the Iran war, driven by rising fuel prices, port congestion and stronger demand ahead of the peak summer booking season, according to market data and reports.
Oslo-based freight analytics firm Xeneta shows rapid increases across major routes. As of Friday, the spot rate for a 40-foot container from Asia to northern Europe stood at $3,649, a 27% increase from the previous week. The Asia-to-US West Coast rate rose 20% to $3,933. Xeneta also reported that Asia-to-US rates have jumped about 109% since the US conflict with Iran began on February 28, while Europe-bound charges are up more than 50%.
Carriers have started applying fuel surcharges to recoup higher energy costs. The situation has been compounded by rerouted voyages after restrictions around the Strait of Hormuz, which have backed up traffic at major Southeast Asian transshipment hubs such as Singapore and Malaysia’s Port Klang.
The squeeze on capacity comes at an inopportune time, with carriers and shippers preparing for the traditional July–August restocking period when inventory demand typically rises. Tight sailings, combined with surging demand, are putting upward pressure on freight rates across trade lanes.
Peter Sand, chief analyst at Xeneta, warned that disruptions at key transshipment ports are straining global supply chains and helping push prices higher. He added that if oil price concerns persist into the second half of the year, shippers may accelerate imports and carriers could lift rates further.
The cost increases are not limited to ocean freight. US domestic transportation expenses recorded their fastest expansion in the history of the monthly Logistics Managers’ Index, reflecting broader pressure on the supply chain and delivery networks.
The market reaction has been visible in equities: shares of A.P. Moller‑Maersk A/S, the world’s second-largest container line, rose roughly 13% over the week as freight rates climbed.
In summary, a mix of higher fuel bills, route disruptions around the Middle East, port congestion in Asia and seasonal demand has driven a notable rise in container shipping costs, with the potential for further increases if energy and capacity pressures continue.