Container rates on trans-Pacific routes from Asia to the United States and Northern Europe improved by double-digits as negotiators made progress on regional trade deals.
Rates have “for the most part” maintained general rate increases from mid-October, analyst Freightos said in a weekly update, as carriers increased blanked sailings in an effort to balance capacity with lower demand during the seasonal lull.
“Trans-Pacific and Asia-North Europe rates increased 15% to 20% last week to about $2,000 per forty foot equivalent unit (FEU) to the West Coast, $3,500 per FEU to the East Coast and $2,270 per FEU to Europe,” said Freightos research chief Judah Levine. “Rates have stayed about level so far this week on these lanes, with Asia- Mediterranean prices easing about $100 per FEU.
Asia-U.S. West Coast prices increased 20% to $2,027 FEU, according to the Freightos Baltic Index, while Asia-North Europe prices increased 15% to $2,267 per FEU and Asia-Mediterranean rates gained 6% to $2,278 per FEU.
Rates are now “well above” levels from before the Red Sea crisis that began in October 2023, Levine said. November could bring more general rate increases from carriers although their staying power would likely depend on continued capacity management.
Hopes for a return by global carriers to the Red Sea-Suez Canal route were kept in check as the shaky ceasefire between Hamas and Israel was a reminder that the region remains volatile.
Announcements of trade deals and frameworks for agreements boosted optimism that the U.S. and China could deescalate their trade war ahead of a meeting between President Donald Trump and Chinese leader Xi Jinping in South Korea this week. Levine said that could include “an extension of tariff levels in place since the May truce – if not a reduction to a lower US baseline duties on China if fentanyl-related tariffs are adjusted – and a reconsideration of the recently introduced port call fees.”
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now