LONDON — Global container spot rates declined again this week, extending a three-week slide as excess capacity and weak demand continued to outweigh cost pressures tied to the war involving Iran, according to the latest update from supply chain analytics firm Drewry.

The Drewry World Container Index eased 1% to $2,216 per 40-foot container, a decline that reflects softer pricing across Asia-Europe, trans-Pacific and trans-Atlantic trade lanes, despite elevated bunker fuel costs and ongoing geopolitical risk.

Trans-Pacific pricing was mixed. Spot rates from Shanghai to New York fell 2% to $3,483 per 40-foot container, while rates to Los Angeles held steady at $2,930. Capacity is set to increase in May, with effective capacity projected to rise 11% month over month on Asia-U.S. East Coast routes and 6% on Asia-U.S. West Coast lanes. Eight blank sailings have been announced for next week.

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On Asia-Europe routes, spot rates continued to edge lower. Rates from Shanghai to Genoa fell 1% to $3,039 per 40-foot container, while rates to Rotterdam declined 1% to $2,127. Drewry said the market remains defined by a supply-demand imbalance, with carriers responding by adjusting capacity.

Seven blank sailings have been announced for the coming week, with effective capacity expected to decline 3% month over month on Asia-North Europe routes and 10% on Asia-Mediterranean lanes in May. Drewry expects rates to remain stable in the near term.

Carriers continue to adjust pricing through surcharges. MSC has increased its emergency fuel surcharge on Asia–U.S. East Coast routes from $430 to $644 per 40-foot container, while CMA CGM has introduced a peak season surcharge of $2,000 per container effective May 1. Drewry expects rates to increase slightly next week as these measures take effect.

Developments in the Middle East continue to shape the market outlook. The Strait of Hormuz — a critical corridor for global energy flows — remains under close watch as the conflict involving Iran evolves.

This all occurs against the backdrop of ongoing uncertainty around the region’s stability, including the potential for further escalation and its impact on global shipping routes. While vessel movements through the strait have not fully halted, carriers remain cautious, adjusting routing decisions and factoring in higher insurance and operating costs.

For container shipping, the impact is indirect but significant. Higher oil prices continue to tighten bunker fuel supply, contributing to elevated operating costs even as freight rates trend lower due to weak demand.

For U.S. importers, the latest data points to a mixed environment. Spot rates have eased for several weeks, providing some cost relief, particularly on Asia–Europe and trans-Pacific routes. However, the introduction of new surcharges and the persistence of geopolitical risk suggest that underlying cost pressures remain.

Drewry said the market is likely to remain reactive in the near term, with pricing influenced by a combination of capacity adjustments, demand variability and developments in the Middle East.