- US West Coast route edges down to $1,728/FEU.
- US East Coast rates ease to $2,703/FEU.
- North Europe route drops $107 to $2,846/FEU.
The container shipping market experienced a relatively calm week, with freight rates on all major FBX routes from the Far East dipping slightly. Although there weren’t any significant events influencing the market recently, all eyes are now on the upcoming USTR port call fees for Chinese-linked vessels, which could affect carrier strategies and pricing in the coming months, reports Baltic Exchange.
Rates Dip Across Far East Export Routes
This week, rates on the key FBX routes from the Far East saw a decline, but the overall market remained subdued without any major happenings.
- FBX01 (China/East Asia – US West Coast): $1,728/FEU, down $14 from last Friday
- FBX03 (China/East Asia – US East Coast): $2,703/FEU, down $23
- FBX11 (China/East Asia – North Europe): $2,846/FEU, down $107
- FBX13 (China/East Asia – Mediterranean): $2,999/FEU, down $81
Effects of Upcoming USTR Port Call Fees
Starting in mid-October, USTR port call fees for Chinese-linked vessels will be implemented for US port calls. Some shipping lines have begun to replace Chinese-built or owned ships in their US services, redirecting them to trades in the Mediterranean and North Europe whenever possible.
Operator Challenges and Possible Surcharges
This strategy is only feasible when vessels have comparable TEU capacities, which means some operators may struggle to sidestep the new fees. For those carriers with fleets heavily tied to Chinese links, surcharges on US services are anticipated. This situation will be closely monitored in Q4 to see how operators and shippers respond.
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Source: Baltic Exchange
