- Transpacific Rates Rebound in December After Early Declines.
- Mediterranean Shipping Costs 161% Higher Than 2019 Levels.
- Transatlantic Lanes Experience 10% Rate Decline in December.
The Freightos Baltic Index Global benchmark, a global standard, was at $3,805 for the forty-foot equivalent unit, FEU. General Rate Increases (GRIs) and high pre-Lunar New Year, LNY demand on ex-Asia lanes helped this 6% growth of December 2024. Continued Red Sea diversions also used capacity, hence the rates remain elevated. Compared to the last year, this was more than double the price and 163% higher compared to 2019, reports Baltic Exchange.
Asia–Europe and Mediterranean Lanes
Rates for Asia–Europe and Mediterranean lanes bounced back in December, reaching a seasonal high of $3,500/FEU after hitting an all-time low in October. Shippers started moving pre-LNY orders before the usual timeframe to push prices up. Also, transit times around the Cape of Good Hope become longer, and there is pressure to get the inventory shipped before the holiday slowdown. Transpacific Lanes Rates for Asia to Northern Europe closed December at $5,155/FEU, which is 15% higher than in November and 128% above the rates seen a year ago. Rates to the Mediterranean hit $5,471/FEU, or 13% higher than November and 161% higher than 2019. These rates have started to plateau at the end of the month.
Transpacific Lanes
On transpacific routes, rates softened early as frontloading ahead of a potential International Longshoremen’s Association (ILA) strike slowed. Asia to North America West Coast rates fell to below $4,000/FEU during early December, but mid-month GRIs were able to recover rates with an early start of the LNY shipping period and continued frontloading ahead of the anticipated 2025 tariff increases. West Coast rates, by the end of December, had rebounded to $4,825/FEU, 6% lower than November levels but nearly triple compared to the same period last year. East Coast rates similarly followed the same trend, as they ended December at $6,116/FEU, modestly up by 2% month-on-month.
Transatlantic Lanes
Transatlantic lanes, which had held steady since mid-October, fell in December. Rates slipped 10% late in the month to $2,279/FEU, though they remained double year-earlier levels. This decline came as carriers started making preparations for possible disruptions, such as an ILA strike in January and an alliance reshuffle in February. MSC said it will impose a $2,000/FEU disruption charge effective January 18, which could propel rates upward in the coming weeks.
Outlook for Early 2025
Decreases in demand are likely to be seasonally low, following the LNY period on ex-Asia lanes. Still, the continuous diversion of cargo out of the Red Sea will maintain the rates at higher levels than usual. The possibility of a long ILA strike in January could continue to create disruption and congested ports and elevate rates further in North America. A seasonal drop is expected but may be less dramatic than usual since U.S. shippers will still frontload their cargo in advance of potential increases in tariffs.
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Source: Baltic Exchange
