Drewry: WCI freight index rises 3%, Middle East situation may further increase costs

(1) The latest report from Drewry shows that as of the week ending March 5, the Drewry World Container Index (WCI) rose by 3% to $1,958/FEU, mainly driven by an increase in trans-Pacific route freight rates. (2) As factories in China gradually return to full production after the Spring Festival, Drewry expects spot rates on eastbound trans-Pacific routes to continue strengthening in the coming weeks. (3) Meanwhile, attacks by the United States and Israel on Iran have effectively frozen tanker transport through the Strait of Hormuz. This strait carries about 20% of the world's oil supply, and supply concerns have already pushed up crude oil prices. (4) Drewry's analysis indicates that if the situation persists, rising marine fuel costs, the imposition of war risk surcharges, and operational disruptions could all drive up overall freight costs, thereby exerting further upward pressure on container shipping rates.