- Asia–US West Coast Rates Up 17% in a Week.
- Asia–Europe Spot Rates Rise as Capacity Tightens.
- Carriers Enforce GRIs Amid Full Vessel Bookings.
Container shipping rates from Asia to the US and Europe are on the rise, fueled by a rebound in demand, limited vessel availability, and upcoming general rate increases (GRIs). These patterns indicate that we might already be experiencing a peak season that’s stronger than anticipated, reports AJOT.
Transpacific Spot Rates Keep Climbing
Transpacific ocean rates have seen a notable increase:
- Asia–US West Coast rates jumped 17% last week, reaching $4,177 per FEU.
- Asia–US East Coast rates went up by 12%, now sitting at $5,814 per FEU.
According to Freightos, “US demand continues to rebound, and with blanked sailings, ongoing Red Sea diversions, and peak season approaching, carriers were able to push through successful GRIs this month.”
High Vessel Utilisation Driving GRIs
Capacity constraints are intensifying. The report notes, “Carriers announced mid-May GRIs which appear to be sticking, with vessels now filling up well in advance of departure.” This suggests shipping lines are gaining greater pricing power as demand strengthens.
Asia–Europe Rates Also Moving Higher
Asia–Europe lanes saw similar movement:
- Asia–North Europe rates increased 16% last week to $4,738 per FEU.
- Asia–Mediterranean rates jumped 12% to $5,783 per FEU.
Freightos noted, “These lanes are seeing even tighter space, and multiple carriers have announced further increases for June 1st. Some carriers are also reportedly cancelling contracts to take better advantage of the current rally in the spot market.”
Impact of Red Sea Diversions and Equipment Shortages
Ongoing Red Sea disruptions are extending voyage times and tightening equipment availability. “The extra demand, equipment tightness, and early signs of peak season pressure are resulting in rate increases not only on the ocean but in air cargo as well,” Freightos added.
Early Peak Season May Be Underway
The convergence of stronger demand, carrier discipline through blank sailings, and rate increases suggests the industry may already be entering peak season. The update concludes, “The early start to the peak season and increasing rates are now being seen across many trade lanes.”
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Source: AJOT
