Container freight rates hold firm amid capacity constraints

International container freight rates presented a mixed picture this week. The Drewry World Container Index edged up by 1%, mainly driven by higher rates on trans-Pacific routes. Freight rates between Asia and Europe remained broadly stable.Shipping lines continue to support freight rates by regularly cancelling scheduled sailings. This reduces the amount of available vessel capacity, preventing downward pressure on rates.The geopolitical situation surrounding the Strait of Hormuz remains a significant risk factor. Although there are indications that Iran and Oman are close to reaching an agreement on a new shipping route, the security situation remains uncertain. As a result, several shipping lines have introduced Emergency Fuel Surcharges, while carriers continue to factor in potential disruptions and higher insurance costs.In addition, low water levels on key rivers in north-western Europe, particularly the River Rhine, are once again creating logistical challenges. Inland barges are unable to carry full loads, reducing transport capacity and increasing hinterland transport costs. This is placing additional pressure on local supply chains, despite relatively stable ocean freight rates.No major changes in container freight rates are expected over the coming week. As long as shipping lines continue to align available capacity with demand and congestion persists at Asian ports, freight rates on Asia–Europe routes are likely to remain stable. However, further developments in the Strait of Hormuz or additional restrictions on European inland waterways could once again increase logistics costs.