The Drewry World Container Index (WCI) has noted a slight increase of 0.35 per cent after a jump of 4.92 per cent in the last week. The index increased to $2,287 per FEU (Forty-foot Equivalent Unit) for the week ending April 2, marking the fifth consecutive weekly increase. The index stood at $2,279 per FEU in the week ending March 26. The freight rates in the Drewry World Container Index (WCI) remained almost steady, with rates holding stability on the Asia–Europe and Transpacific trade routes. Meanwhile, WCI’s analysis suggests not to panic on freight hike as situation is still contained compared to COVID-19 peak.

Rates on Asia–Europe trades have remained relatively stable despite ongoing tensions in the Middle East. Spot rates on Shanghai–Genoa inched up 2 per cent to $3,529 per 40ft container, while Shanghai–Rotterdam stayed unchanged at $2,543 per 40ft container. According to Drewry’s Container Capacity Insight, only 4 blank sailings have been announced for next week on the Asia–Europe trade, suggesting stable capacity. Meanwhile, Drewry expects spot rates to increase in the coming weeks as higher bunker fuel costs prompt carriers to implement emergency bunker fuel surcharges.

The Drewry WCI rose marginally to $2,287 per FEU, marking a fifth weekly gain, though overall freight trends remain stable across key routes.
Asia–Europe and Transpacific lanes saw limited movement, while bunker fuel surcharges may push rates higher.
Middle East-linked routes show sharper spikes, but disruption remains contained versus COVID-19 peaks.

On the Transpacific route, spot rates from Shanghai to New York increased 1 per cent to $3,434 per 40ft container, while those to Los Angeles decreased 1 per cent to $2,663. Maersk is seeking US regulatory approval to waive the 30-day notice period and introduce an emergency bunker surcharge, citing elevated and volatile fuel costs amid Middle East tensions. The proposed surcharge is $200 per Twenty-foot Equivalent Unit (TEU) for head-haul and $100 per TEU for backhaul dry shipments. With carriers continuing to push for rate increases, Drewry expects spot rates to increase further in the coming weeks.

Rates from New York to Rotterdam increased 3 per cent to $1,001 per FEU, while Rotterdam-New York increased 2 per cent to $1,579 per FEU. Rotterdam-Shanghai rose 2 per cent to $605 per FEU, and Los Angeles–Shanghai grew 2 per cent to $742 per 40-foot container.

Ongoing disruptions in the Strait of Hormuz, a key route for nearly 20 per cent of global oil, have tightened bunker fuel availability and pushed prices higher. In Asia, fuel supplies in key hubs like Singapore and China are starting to tighten, prompting carriers to adopt operational measures such as slow steaming, alternative refuelling strategies and emergency fuel surcharges to manage costs. These measures are expected to keep freight rates elevated in the short term.

A recent analysis by Drewry suggests not to panic as freight rates have surged amid the Middle East conflict but the situation remains relatively contained compared to the COVID-era spike. Capacity has largely held steady across most global routes, barring disruptions in Gulf-linked lanes, helping prevent extreme volatility. However, routes connected to the Middle East are witnessing sharper fluctuations, with elevated bunker surcharges adding to cost pressures.

Drewry data indicated that freight rate increases vary sharply by route. On non-Middle East routes, spot rates rose a relatively moderate 16 per cent between February and March 2026, far below the 35 per cent spikes seen during the COVID-19 peak. However, Middle East-linked routes have seen far steeper increases, with some lanes surging by as much as 316 per cent in March, alongside earlier gains of nearly 49 per cent. This divergence highlights a concentrated disruption, with bunker surcharges and route-specific risks significantly inflating logistics costs for affected trade corridors.

Fibre2Fashion News Desk (KUL)

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Vietnam’s manufacturing sector continued to expand in March 2026, with the S&P Global Manufacturing PMI easing to 51.2 from 54.3 in February. The reading signalled the slowest improvement in operating conditions since September, while extending the current expansion streak to nine consecutive months.

A key feature of the month was a sharp surge in inflation. Rising oil prices pushed up freight and transportation costs, leading to the fastest increase in input costs since April 2022. In response, manufacturers raised selling prices at the steepest pace in nearly 15 years, S&P Global said in a press release.

The surge in prices began to weigh on demand. While total new orders continued to rise, growth slowed significantly, partly supported by advance purchasing by clients seeking to avoid further price increases. Export orders, however, declined markedly after stabilising in February.

Vietnam’s manufacturing sector expanded for a ninth month in March 2026, with PMI at 51.2, though growth slowed amid surging inflation.
Rising oil prices drove input costs to a two-year high, prompting the steepest rise in selling prices in nearly 15 years.
Demand weakened, exports declined, and firms cut hiring.
Supply delays worsened, while business confidence fell to a six-month low.

Production growth also moderated, recording its weakest expansion since June 2025, even as output continued to rise for the eleventh consecutive month. Firms responded to rising costs and softer demand by cutting back on purchasing activity, ending an eight-month expansion phase, and reducing employment for the first time in six months.

Supply chain pressures intensified, with suppliers’ delivery times lengthening to the greatest extent in four years, largely due to higher fuel costs and transportation delays. Backlogs of work increased slightly as firms struggled with labour shortages and material constraints.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “Given the country’s reliance on oil imported from the affected region, the impact on prices and supply chains would have been expected to some extent. The rate at which input cost inflation accelerated though, and the subsequent increase in selling prices shows the immediate and marked effects that firms are experiencing.”

“Output and new orders remained in expansion territory in March, but rates of increase were well down on February and at least some of the growth seen was due to customers placing advanced orders to try to get ahead of price rises. The near-term outlook therefore appears bleak, unless a speedy resolution to the war and the disruption through the Strait of Hormuz can be achieved,” added Harker.

Business confidence fell to a six-month low amid concerns over inflation, supply disruptions and weakening global demand, although firms continued to expect output growth over the coming year, supported by underlying demand trends.

Fibre2Fashion News Desk (SG)