Middle East Conflict Escalates, Shipping Rates Rebound Again

Publish Time: 2026-03-31     Origin: Site

As conflicts in the Middle East continue to escalate and international oil prices surge, combined with strong end-of-month and quarter-end cargo volume, global container freight rates have entered a new rebound phase.


According to the latest data released by the Shanghai Shipping Exchange on March 27, the Shanghai Containerized Freight Index (SCFI) stood at 1826.77 points, up 119.82 points from the previous week, representing a weekly increase of 7.02%, returning to growth after a short correction.

Route Performance Highlights

  • Far East to US West Coast: surged 14.51% weekly

  • Far East to US East Coast: rose 11.70%

  • Europe route: up 4.10%

  • Mediterranean route: slightly down 0.72%

  • Persian Gulf route: extended gains by 12.15% to around **$3,728 per TEU**, an increase of $404 in a single week

Market analysts believe the freight rebound is driven by three major factors:
  1. The Middle East conflict has pushed up fuel costs, lifting the floor of shipping rates.

  2. Carriers have proactively strengthened capacity control, supporting price increases.

  3. Quarter-end concentrated shipments have boosted short-term demand.

In the spot market, the current rate for a 40-foot container to the US West Coast is around $2,525, and about $3,525 to the US East Coast.


At the same time, shipping lines are continuing annual contract negotiations, with “Open Fix” pricing windows open until mid-April. Contract rates stand at around $1,900 for US West Coast and $2,900 for US East Coast, showing a clear gap compared with spot prices.


Notably, carriers continue to signal further price hikes.


Maersk has raised its April US West Coast quotation from $1,600 to $1,900. Europe route rates have also increased from $2,200–$2,400 per FEU to $2,400–$2,750.


In addition, Yang Ming, Evergreen Marine and other lines plan to impose emergency bunker surcharges in mid-April. Although some regions face policy restrictions, these costs are expected to eventually be reflected in actual transaction rates.


From a macro perspective, the Middle East conflict has exerted ongoing pressure on the global shipping supply and demand structure. Industry estimates suggest the conflict has affected approximately 1.5% of global container capacity, triggering chain reactions including regional port congestion, equipment shortages and schedule disruptions.


Some ports in South Asia and Europe are already showing congestion signs. If the situation worsens, the impact may spread further.


The market is now in a critical window for annual contract negotiations on North American routes.


Under dual pressure from rising costs and growing uncertainty, carriers have taken a firm stance and pushed for higher contract rates.


Yang Ming and Wan Hai Lines both stated that, amid tight supply and rising costs, freight rates will be more likely to rise than fall in the future, and the spot market will follow the upward trend of contract rates.


Overall, this round of freight rate rebound reflects both short-term shipping demand and oil price drivers, as well as the combined effect of geopolitical tensions, capacity control and market game.


With ongoing Middle East tensions, uncertainty in the global shipping market continues to rise, and freight rates are likely to remain volatile and trend upward in April.

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SCFI Major Route Rates (March 27)

  • Far East to Europe: $1,703 / TEU (+4.10%)

  • Far East to Mediterranean: $2,764 / TEU (–0.71%)

  • Far East to US West Coast: $2,352 / FEU (+14.51%)

  • Far East to US East Coast: $3,264 / FEU (+11.70%)

  • Persian Gulf: $3,728 / TEU (+12.15%)

  • Santos (South America): $2,475 / TEU (+0.73%)

  • Australia & New Zealand: $695 / TEU (+11.90%)

  • Southeast Asia: $500 / TEU (+3.31%)

  • Japan routes: flat

  • South Korea route: down $1


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