Asia Spot Rates Split as Transpacific Sinks and Asia–Europe Surges

By Gavin van Marle (The Loadstar) – Container spot freight rates out of Asia this week diverged between the North American and European markets.

On the transpacific spot rates resumed their downward trajectory after a brief spike the week before, with this week’s World Container Index (WCI) from Drewry following the movement seen last week on the Shanghai Containerised Freight Index (SCFI).

This week’s Shanghai-Los Angeles leg on the WCI declined 12% on the previous week, to end at $2,328 per 40ft, while its Shanghai-New York leg was down 15%, to finish at $3,254 per 40ft.

And should the SCFI continue to act as a kind of “forward curve” for the WCI, worse could be on the way for carriers, after today’s Shanghai-US west coast base port reading saw it decline a further 18% on last week, to end $1,823 per 40ft.

The SCFI’s Shanghai-US east coast base port leg registered a 9% decline week on week, to end at $2,600 per 40ft.

These levels chimed with data released by US freight forwarder True Freight, which reported that China-US west coast was “hovering around $1,700–$1,750 per 40ft”, while China-US east coast “has slipped to roughly $2,500–$2,700”.

“The gap reported last week between ‘special’ rates being issued to freight forwarders from carriers, and the carriers’ ‘fixed’ advertised rate, continued to shrink. Week to week there is now only about a $100 difference between special and advertised USWC and USEC rates,” the forwarder said.

“Right now we’re expecting container rates to continue to fall, with USWC and USEC edging toward September-like levels, if bookings remain tepid.

“A temporary December GRI attempt is possible, but without stronger liftings it would likely be short-lived,” it added.

Several carriers do have a 1 December transpacific GRI in place, ranging from $1,000-$3,000 per 40ft, depending on carrier.

The transpacific was not the only trade into the US suffering weakening pricing this week – the WCI’s transatlantic spot rate fell 2% week on week, to end at $1,633 per 40ft, which is some 25% off the “historical” market rate of circa-$2,000 and at one of its lowest levels since the second half of 2023.

In contrast, spot rates on the Europe-Asia trades continued to strengthen, buoyed by a series of new FAK (freight all kinds) price hikes.

This week’s Shanghai-Rotterdam reading on the WCI rose 3% on the past week, to end at $2,038 per 40ft – the first time it has breached $2,000 since early September.

The WCI’s Shanghai-Genoa leg gained 4% on the previous week, to finish at $2,193 per 40ft.

“Carriers on the Asia–Europe trade route are trying to push spot rates up by introducing higher FAK rates, ranging from $3,000 to $3,650 per 40ft box, effective 15 November, in an attempt to elevate spot rates before the start of the new annual contract negotiation season,” Drewry noted.

These efforts are likely to persist into next month. MSC announced another Asia-Europe new FAK level yesterday, to be applied from 1 December, and is seeking $3,100 per 40ft to North Europe ports – equivalent to a 50% price increase over a two-week period – and $3,950 to west Mediterranean and $3,800 to east Mediterranean destinations.

If successful, that would almost double the current Asia-Mediterranean spot rates.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 106,934 members