In September 2023, the Freightos Baltic Global Index dropped by 23%, reaching $1,177/FEU, as rates slid across major trade routes due to overcapacity, despite capacity reductions.
Capacity Management
Transpacific spot rates to the West Coast fell 16% to $1,700/FEU, while East Coast prices decreased by 21% to $2,713/FEU, suggesting that August likely marked the peak of this year’s peak season, though rates remained above 2019 levels.
Prices to the West Coast remain 26% above 2019 levels, while East Coast rates are 10% lower than in 2019, with both lanes above July levels. Carriers are effectively managing capacity and preventing rate collapse, using blanked sailings and service suspensions. However, Asia-N. Europe lanes saw a 41% rate crash in September to an FBX record low of $1,025/FEU.
Key Trade Lanes
- Asia-N. Europe lanes experienced a record 41% rate decline to $1,025/FEU in September, despite blanked sailings and slow steaming, pushing rates below contract levels.
- Asia-Mediterranean rates also dropped significantly, down 31% to $1,585/FEU, due to supply surpassing demand.
- Transatlantic rates fell 12% to $1,047/FEU, 45% lower than 2019, with overcapacity challenges exacerbated by vessel-sharing agreements and alliances.
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Source-Baltic Exchange
