East Coast Asia-US container rates hold at $9,600
Last week, East Coast Asia-US container spot rates held steady at about $9,600 per forty-foot equivalent unit while West Coast rates rose 4% to more than $8,100 per FEU. Despite the increase, trans-Pacific rates remain well below the September 2021 peak when Asia-West Coast prices topped $20,000 per FEU.
The elevated trans-Pacific rates reflect strong U.S.-bound demand, weather-related port congestion in the Far East and carriers managing capacity through blanked sailings. Asia to North Europe spot rates fell 15% last week to about $3,700 per FEU, while Asia-Mediterranean rates dropped 7% to roughly $3,900 per FEU after exceeding $7,000 in July. Carriers are also reducing capacity in anticipation of softer volumes during China’s Golden Week holiday and a broader demand easing expected after the peak season ends in October. A possible indefinite strike at German ports could add to the pressure on Asia-North Europe services. The Verdi labor union is voting on a job action that could begin as early as October, potentially worsening terminal congestion and constraining carrier capacity.
The divergence follows an unusually early east-west peak season that began in May and lifted container spot rates sharply through early July, according to analyst and SONAR data contributor Freightos (NASDAQ: CRGO). Freightos said that the current market is more comparable to the 2024 peak season, when Red Sea diversions constrained effective vessel capacity.
What we know
Asia-West Coast spot rates increased 4% last week to more than $8,100 per forty foot equivalent unit (FEU), while East Coast prices were essentially unchanged at about $9,600 per FEU.
Rates from Asia to North Europe fell 15% last week to about $3,700 per FEU.
Asia-Mediterranean rates fell 7% to approximately $3,900 per FEU, after exceeding $7,000 per FEU in July.
Freightos Baltic Index data show that Asia-West Coast prices exceeded $20,000 per FEU in September 2021, when extraordinary U.S. import demand collided with severe port congestion.