THE latest container rate updates show Asia-Europe leading a continuing rise in box rates, with congestion in Asia expected to bring further increases.

Drewry's World Container Index (WCI) for June 20 showed a 7 per cent increase on-week in its composite index to US$5,117 per FEU, reports UK's Seatrade Maritime News.

Putting the recent rate rises in context, the latest figure is 233 per cent up on the same week last year, and 260 per cent above average pre-pandemic rates of $1,420 in 2019, said Drewry.

Container rates have been on the rise since late in 2023 as Houthi attacks in the Red Sea divert ships around the longer Cape of Good Hope route between Asia and Europe, soaking up capacity with longer voyage distances and times.

The market situation is precarious as there remains a structural overcapacity in the liner trades, worsened by ongoing vessels deliveries, but supply and demand remain tight as long as the Red Sea remains effectively closed.

Drewry said it expects freight rates from China will continue to rise this week due to congestion issues at Asian ports.

Disruption has been seen at both ends of Asia-Europe trades as the longer voyage times for diverted ships brought bunching of arrivals.

Vessels were delayed as Europe's ports struggled to process a spike in throughput, and those delays have rippled along the loop to ports like Singapore.

There was a less steep rise for the Shanghai Containerised Freight Index (SCFI) last week, rising by 2.85 per cent to 3,475.6, continuing its own upward march.

In November 2023, SCFI was struggling to break 1,000 points before leaping to over 2,000 at the turn of the year.

After a slight softening in March and April, the index has risen steadily from around 1,750 in late April points to its current heights.