This week, the Drewry World Container Index rose by 3% to $1,746 for a 40-foot container. This marks the second week in a row of increases after a 17-week drop.

Transpacific routes saw significant growth, with spot rates from Shanghai to Los Angeles increasing by 4% to $2,290 per 40-foot container, and rates from Shanghai to New York jumping 6% to $3,420. According to Drewry, “rates are expected to rise slightly next week due to the General Rate Increases (GRIs) that started in mid-October.”

Asia-Europe routes also experienced gains. The rate from Shanghai to Rotterdam went up by 4% to $1,736 for a 40-foot container, while the Shanghai to Genoa route increased by 2% to $1,855. Carriers are under pressure to raise prices as the annual contract negotiation season approaches.

In an effort to stabilize rates, carriers have announced new FAK rates starting November 1, ranging from $2,600 to $2,700 for a 40-foot container. More General Rate Increases are also planned for November 1 and November 15 as carriers look to secure higher prices before the current increases lose their effectiveness.

However, Drewry's Container Forecaster warns that “the supply-demand balance will weaken in the next few quarters, which will lead to a decrease in spot rates.”