Global container freight rates rose for a second consecutive week as carriers restricted transpacific capacity, while weaker demand placed pressure on Asia-Europe pricing.

Drewry’s World Container Index increased 1% to $4,339 per 40-foot container, led by gains on routes from China to the United States. The Shanghai-to-New York rate climbed 10% to $8,706, while Shanghai-to-Los Angeles increased 6% to $6,244.

Carriers have been managing available capacity through blank sailings. Ten sailings were cancelled in each of the previous two weeks, with a further seven cancellations planned for the following week. Drewry expects the resulting reduction in capacity to limit freight-rate volatility in the near term.

Conditions were softer on Asia-Europe services. Rates from Shanghai to Genoa declined 8% to $5,080 per 40-foot container, while Shanghai-to-Rotterdam pricing fell 5% to $4,425.

Carriers have announced new freight-all-kinds rates of between $6,700 and $7,100 on Asia-Mediterranean routes from August 15. However, Drewry said weakening demand could make it difficult for those levels to be sustained.

The wider east-west container market continues to face multiple operational disruptions. These include security concerns affecting the Suez Canal and Strait of Hormuz, restrictions at the Panama Canal, congestion at Asian ports following Typhoon Dolphin and record-low water levels on the Rhine.

Freight benchmarking company Xeneta said almost six months of disruption in the Middle East is increasingly affecting the long-term contract market. According to the company, long-term rates from the Far East to the US West Coast have risen 41% since the end of February, while those to the US East Coast are up 40%.

Over the same period, long-term rates from the Far East to North Europe increased 41%, and Mediterranean contract rates rose 17%.

The contract increases remain considerably below movements in the spot market. Xeneta said spot rates from the Far East to the US West Coast were 271% above pre-crisis levels, while US East Coast rates were 287% higher.

This widening difference has strengthened carriers’ position in negotiations with cargo owners. On the Far East-US West Coast trade, spot rates are now $4,103 per 40-foot equivalent unit above long-term contract rates, Xeneta reported.

Xeneta Chief Analyst Peter Sand described the contract-market impact as the longer financial consequence of supply chain disruption. He cautioned shippers against committing to year-long contracts while rates are rising, suggesting shorter agreements could help secure capacity while retaining scope for prices to adjust if the spot market changes direction.