Asia-US container rates mostly higher on Iran war stalemate; tanker rates edge lower

HOUSTON: Rates for shipping containers from east Asia and China to the US rose again this week and are now up by about $1,000/FEU (40-foot equivalent unit) since the start of the Iran war, and liquid tanker rates were steady to softer with decreases across most trade lanes.

CONTAINER RATES

Rates from online shipping marketplace and platform provider Freightos fell by 1% to both US coasts, and rates to the West Coast are up by 56% from the start of the war and rates to the East Coast are up by 41%.

Judah Levine, Head of research at Freightos, said the continued closure of the Strait of Hormuz amid the US-Iran war as peak season approaches will lead to demand-driven movements in rates from higher fuel costs, with blank sailings for capacity management also playing a role.

Levine said transpacific rates are expected to rise further once peak-season demand kicks in. The National Retail Federation (NRF) expects peak season to arrive in July.

Rates from supply chain advisors Drewry rose by 1% from Shanghai to Los Angeles and were up by 2% from Shanghai to New York.

Drewry expects rates to rise in the coming weeks on tighter capacity from the blank sailings and from the implementation of general rate increases (GRIs).

Rates on the New York Shipping Exchange Freight Index (NYFI) rose by 6.8% to the West Coast and rose by 3.3% to the East Coast while rates on the Shanghai Containerized Freight Index (SCFI), which tracks rates for containers leaving Shanghai, rose by 3.6% to its highest level since June 2025.

Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers.

They also transport liquid chemicals in isotanks.

TANKER RATES

US liquid chemical tanker freight rates as assessed by ICIS were steady to softer this week with downward pressure for several trade lanes.

Charterers continue to maximize use of their contract of affreightment (COA) volumes along the US Gulf-Asia trade lane as there is very little available tonnage and as spot rates remain high.

Meanwhile, many owners continue to avoid sending vessels in that direction to stay away from long transit times via the Panama Canal and few back haul cargos available. There were only a handful of inquiries seen in the market, most notably a cargo of BTX (benzene, toluene, xylenes) and ethylene dichloride (EDC).

Similarly, rates from the USG to Rotterdam were steady to softer this week, even as space among the regular carriers remains limited. Contract tonnage continues to prevail and given the limited available space, spot demand remains relatively good. Several larger sized cargos of styrene, methanol, methyl tertiary butyl ether (MTBE) and ethanol were seen in the market.

However, as CPP rates have dropped significantly, several outsiders have become available for both May and June, which could add to the available tonnage for completion cargos. Easing demand for clean tankers seems to have attracted those vessels to enter the chemical sector and push rates lower.

For the USG to South America trade lane, rates edged lower with a few inquiries for methanol and ethanol widely viewed in the market. Overall, the market was relatively quiet with steady COA nominations, however more CPP vessels have entered the market putting downward pressure on rates as more space has become available.

On the bunker side, fuel prices in the USG region have risen as well, on the back of higher energy prices, as a result week over week were firmer.

Source: ICIS