uxdz[d33xfw)v61g)oa{})jl_media_dl_1.png Logistics Managers' Index

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(Bloomberg) — Container shipping rates jumped over the past week amid higher fuel costs, congestion at some Asian ports and a pickup in demand heading into a peak season for booking ocean freight.

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The spot rate for a 40-foot container to northern Europe from Asia rose to $3,649 as of Friday, a 27% increase from week earlier, according to Xeneta, an Oslo-based freight platform. The cost to the US West Coast from Asia was up 20%, to $3,933.

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The numbers align with Drewry’s latest composite reading for several long-haul routes, which also showed short-term rates posting a steep jump over the past week to the highest level in about a year.

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Xeneta’s figures showed rates to the US from Asia are up 109% since the US war with Iran started on Feb. 28, while charges for Europe-bound containers are up more than 50%. Carriers are adding fuel surcharges and forcing importers to shoulder costs tied to the energy crisis.

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On top of those added fees is tighter capacity heading into busy months for inventory restocking — July and August. Shipments rerouted because of the blocked Strait of Hormuz are causing backups at Southeast Asian hubs including Singapore and Malaysia’s Port Klang, spreading the capacity pressures to trade lanes far from the Persian Gulf. 

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“Port disruption is toxic for supply chains, especially at transshipments hubs with global significance in Southeast Asia,” said Peter Sand, chief analyst with Xeneta. “So this is driving massive market spikes on trades such as the transpacific which does not transit the Middle East.”

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Related: US-Iran Standoff Drags On as Conflict Nears 100-Day Mark

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With fears growing that oil prices will stay elevated into the second half, the rate surge may have more room to run, he said. 

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“The wave of freight rate increases is gathering momentum,” Sand said. “If shippers do look to front-load imports, then carriers will look to push rates higher and higher, so the market may yet be far from its peak across trades globally.”

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Shares of A.P. Moller-Maersk A/S, the world’s second-biggest container line, advanced about 13% this week.

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The surging cost of freight isn’t confined to seaborne cargo. The May reading of US transport costs in the monthly Logistics Managers’ Index showed the fastest rate of expansion for any metric in the 10-year history of the report.

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