Container Spot Rates Slip as Lunar New Year Lull Kicks In

By Gavin van Marle (The Loadstar) –

Despite the muted trading activity since China’s new year holiday began this week, spot rates on most major east-west ocean trades continued to show slight declines.

As a result of the two-week public holiday in China, the Shanghai Containerised Freight Index (SCFI) has suspended publication until people return to work.

Nonetheless, as in recent weeks, Drewry’s World Container Index (WCI) saw the steepest falls on its Asia-Europe routes. The WCI’s Shanghai-Rotterdam leg declined 5% week on week, to end at $3,274 per 40ft, while the Shanghai-Genoa leg declined 4% week on week, to finish at $4,400 per 40ft.

Earlier in the week, Xeneta’s XSI Far East-North Europe route saw its spot rate decline 8.5%, to $3,713 per 40ft.

Declines were also seen on the transpacific routes, notwithstanding the overhanging threat of tariffs from the new Trump administration. The WCI’s Shanghai-Los Angeles and Shanghai-New York legs spot rate both lost 1% on the previous week, to finish on $4,771 per 40ft and $6,288 per 40ft, respectively.

However, a series of general rate increases (GRIs) announced by carriers at the beginning of the year are also set to be implemented tomorrow (1 February) on Asia-US services, ranging from $1,000 to $3,000 per 40ft, although it remains to be seen whether they will stick.

In addition, both MSC and CMA CGM have announced new peak season surcharge of $1,000 per 40ft to be applied from 1 March on headhaul westbound transatlantic shipments.

The Rotterdam-New York WCI leg declined 2% this week, to finish at $2,732 per 40ft, while Xeneta’s XSI was down 6% on the previous week, to $2636 per 40ft.

“Drewry expects spot rates to decrease slightly in the coming week due to the increase in capacity,” the analyst noted.

Today also saw the publication of Japanese carrier ONE’s third-quarter results – representing its performance in the final three months of 2024 – in which it posted a 44% year-on-year revenue increase, to $4.85bn for the quarter, on the back of a 5% growth in volumes, to 970,000 teu. This resulted in a net profit of $.16bn, which compares with a net loss of $83m in the corresponding period in 2023 – shortly before the onset of the Red Sea crisis.

ONE also saw continuing high vessel utilisation, its Asia-North America services seeing 100% loading factors for the last nine months. Utilisation on Asia-Europe vessels was 98% for the quarter.

“In the North America eastbound trade, cargo movement slowed down initially, but recovered in the latter half of the quarter, boosted by concern over the potential strike in the east and Gulf coast ports,” the company said.

“In the Asia-Europe westbound trade, the advanced cargo rush for the holiday season in the second quarter led to a slowdown in cargo movement at the beginning of Q3, but cargo demand recovered gradually in November and December”, it said, adding a cautious note of optimism for the coming quarter.

“With the traditional slack season approaching, a slowdown in cargo movement is expected, coupled with increasing uncertainty in the business environment.

“While the supply-demand balance is softening, it is expected to recover gradually after the lunar new year,” it said.

ONE today forecast full-year revenue of $19bn and a net profit of just over $4bn, which would represent a 30% improvement on 2023’s result.

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