Container rates rise as Hormuz reopening talks advance

LONDON — Global container freight rates reversed three consecutive weeks of declines this week, with higher trans-Pacific pricing lifting Drewry’s World Container Index as uncertainty surrounding the Strait of Hormuz continued to weigh on global shipping.

The WCI increased 1% to $4,297 per 40-foot container for the week of Aug. 6, according to the supply chain analytics firm. The increase was driven primarily by stronger rates on trans-Pacific trade lanes.

Spot rates from Shanghai to New York rose 4% to $7,893 per 40-foot container, while rates from Shanghai to Los Angeles increased 3% to $5,894. Drewry said carriers successfully implemented general rate increases as shipping volumes held firm into August.

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Congestion at ports in central and southern China also continued to constrain available capacity, providing additional support for rates. Drewry’s Container Capacity Insight shows eight blank sailings scheduled on the trans-Pacific next week, unchanged from this week. Drewry expects volatility in rates to diminish in the coming week.

Asia-Europe rates remain largely stable

Movement was more limited on Asia-Europe routes. Rates from Shanghai to Genoa declined 2% to $5,506 per 40-foot container, while Shanghai-to-Rotterdam rates were unchanged at $4,653.

Three blank sailings were recorded on the Asia-Europe trade lane this week, with another three scheduled for next week. Drewry said continued carrier capacity management should keep rates stable over the next week.

The firm said the broader East-West container market remains volatile amid Middle East tensions, new U.S. tariffs and congestion at Asian ports. The resumption of hostilities between Iran and the United States in late July has added uncertainty around shipping through the Strait of Hormuz and prompted several carriers to introduce emergency fuel surcharges beginning in August.

Hormuz talks show signs of progress

Meanwhile, negotiations over reopening the Strait of Hormuz appeared to make progress Thursday, although significant details remain unresolved.

Iran said it was close to finalizing an agreement with Oman over reopening the strategic waterway, which has been effectively closed since the war began in February. Under proposals being discussed, Tehran would reportedly exercise control over ships entering the Gulf, while Oman would oversee outbound traffic.

Iran has also maintained that reopening the strait would depend on the United States lifting its blockade of Iranian ports. Iranian sources pushed back on President Donald Trump’s claim that an agreement was imminent, telling Reuters that important details remained unsettled.

The stakes remain significant for global shipping. Before the conflict, the Strait of Hormuz carried about one-fifth of the world’s oil and gas supply and operated as an open international waterway. Iran has said any new arrangement would not simply restore the prewar status quo.

Shipping traffic through both Hormuz and the Bab el-Mandeb Strait declined sharply Wednesday from the previous day, according to shipping data cited by The Guardian. The Iran-backed Houthis also said they attacked two Saudi oil tankers with ballistic missiles as part of their maritime blockade, adding another point of concern for shipping through the region.

The Guardian also reported that Iran has warned Gulf governments that it could target oil, power and water infrastructure in the region if U.S. strikes hit Iranian infrastructure, underscoring the continued risk of a broader disruption even as negotiations over Hormuz move forward.