- Transpacific spot freight rates declined due to reduced strike risks at U.S. ports and the Lunar New Year storage ending.
- Freight rates on Asia-Europe routes continued to weaken attributed to lower demand and overcapacity.
- Transatlantic routes defied the trend, with rates on the Rotterdam-New York route increasing 4% week-on-week and 86% year-on-year.
The global container freight market is experiencing a mixed trend, with falling rates in the transpacific and Asia-Europe sectors but resilience on transatlantic routes. Declining demand, seasonal shifts, and market volatility are reshaping freight rate dynamics, reports Sungreen.
Transpacific Spot Rates Decline After Strike Threats Ease
Spot freight rates for the Shanghai-Los Angeles and Shanghai-New York routes dropped by 5% and 4%, respectively, marking the first fall in a month.
The end of early storage for the Lunar New Year and reduced strike risks at U.S. ports were key factors. Despite the declines, year-on-year rates remain 35% and 21% higher.
Asia-Europe Routes See Continued Weakness
Freight rates on the Shanghai-Rotterdam route fell 3% week-on-week to $4,231 per 40 feet, down 15% year-on-year. Similarly, rates on the Shanghai-Genoa route dropped 2% week-on-week and 19% year-on-year.
Industry experts forecast further declines into February due to overcapacity and weaker demand.
Market Segmentation and Pricing Trends
European freight forwarders report a significant drop in waybill rates since December, with the average market price falling to $4,488 per 40 feet.
However, the low-end market has seen steeper discounts of 20%-25%, driven by aggressive pricing strategies.
Overcapacity and Volatility Shape Market Dynamics
Excess capacity, exacerbated by lower-than-expected demand, is pressuring freight rates.
Market corrections remain challenging, even with grounded flights and capacity adjustments.
Transatlantic Routes Defy East-West Trends
Unlike the transpacific and Asia-Europe routes, transatlantic freight rates rose. The Rotterdam-New York route saw a 4% weekly increase to $2,798 per 40 feet, representing an 86% year-on-year surge.
Sustained demand and tariff-related concerns supported the upward trend.
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Source: Sungreen
