Emergency fuel surcharges drive up container spot rates

The war in the Middle East is a growing concern for global economic growth and inflation, while high energy prices are increasing transport costs. Container carriers are introducing emergency fuel surcharges.Drewry’s World Container Index increased for the third consecutive week. The index went up by 2% this week. Drewry states that despite ongoing tensions in the Middle East, rates on Asia–Europe trades remain relatively stable. The highest increase in rates was seen on the Shanghai–New York trade, at +7%.Carriers have implemented higher FAK (freight all kinds) rates. Maersk, CMA CGM, COSCO and OOCL have introduced emergency fuel surcharges. Drewry expects higher spot rates in the coming weeks for both Asia–Europe routes and the Transpacific route.It is unclear how long the Iran war will last. 99 ships have passed the Strait of Hormuz So far in March, according to data analysed by BBC. Before February 28, when the US and Israel attacked Iran, an average of 138 vessels passed through the strait daily, according to Joint Maritime Information Centre.Safe passage through the Strait of HormuzTrump wants to make the Strait of Hormuz a safe passage. Five European countries, Canada and Japan 'call for an immediate comprehensive moratorium on attacks on civilian infrastructure, including oil and gas installations'. In a joint statement they also 'express our readiness to contribute to appropriate efforts to ensure safe passage through the Strait'. There is broad skepticism that military protection would be very effective according to maritime data platform Freightos. And if it is mainly oil and LNG tankers will benefit. Reduced capacity out of Gulf hubs and growing Asian volumes diverting to Europe have pushed Freightos Air Index rates higher on several routes. South Asia–Europe rates reached $4.72/kg today, 84% above pre-war levels. Southeast Asia–Europe prices rose 26% to $4.23/kg, while Europe–Middle East rates increased 57% to $2.82/kg, partly reflecting fuel surcharges introduced by some carriers, Freightos said.