- Market Sentiment Supports US West Coast Spot Rates.
- Freight Forwarder Discounts Narrow Further.
- Drewry and SCFI Signal Softer Container Pricing.
Container rates from Asia to the US took a dip this week, thanks to an increase in capacity across major trade routes and a lack of demand. According to Xeneta data, the lower rates are a clear sign of the soft market conditions we’re seeing, reports ICIS.
Market Sentiment Influencing USWC and USEC Rates
Xeneta’s chief analyst, Peter Sand, said sentiment is shaping rate movements.
“Market sentiment is a powerful force in container shipping, and we see this right now in the spread in spot rates between the Asia trades into the US West Coast and US East Coast,” he said. He added that the easing of tariffs and port fee suspensions means “spot rates into the US West Coast are holding a little stronger.”
Sand noted that capacity increases are weighing on carriers, saying “carriers likely have less success with GRIs than they did in October and early November.”
Freight Forwarder Rates Narrowing
Freight Right’s TrueFreight Index also recorded weekly declines. Its CEO Robert Khachatryan, said the gap between special and advertised rates is shrinking, noting “Week to week, there is now only about a $100/FEU difference between special and advertised USWC and USEC rates.”
Drewry and SCFI Report Softer Rates
Drewry has noted a decline in rates for both US coasts and anticipates further softening as demand continues to drop, pointing out that holiday inventory has already been brought in. Meanwhile, spot rates on the SCFI have fallen for the second week in a row after enjoying four weeks of gains.
Why Container Rates Matter for Chemicals
Container ships are essential for transporting polymers like PE and PP, as well as TiO₂, and they play a crucial role in isotank chemical shipments. So, any shifts in rates are significant for the chemical supply chain.
Liquid Tanker Rates Hold Steady
This week, US chemical tanker spot rates remained mostly stable. Demand has been soft across various trade lanes. There’s been a noticeable uptick in activity heading into Montreal as shippers rush to move materials before winter ice restrictions kick in. The US Gulf–ARA route is still sluggish, with CPP tonnage impacting the market. Shipments included styrene, caustic soda, molasses, and lube oils. Even though proposed Chinese port fees have been put on hold, it might take a while for vessels to return to normal operations.
US Gulf–Asia and Brazil Trades
Spot volumes from the US Gulf to Asia are still weak, with limited prompt space and activity primarily focused on SE Asia cargoes like MEG, ethanol, and methanol. On the US Gulf–Brazil route, inquiries have been steady, but rates remain stable due to ample space, with base oils and lube oils leading the fixtures.
US Gulf–India Activity Slows
The US Gulf–India route hasn’t seen much of a boost, with only a handful of inquiries for glycol and ethanol for November and December, and no confirmed fixtures in sight.
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Source: ICIS
