- Drewry Predicts Further Rate Increases Amid Looming ILA Port Strike.
- Shanghai-Los Angeles Freight Rates Climb 26% in a Week.
- MSC Announces Emergency Surcharge Hike for Transatlantic Shipments.
Container spot rates on the transpacific trades have escalated this week, on account of a string of mid-December General Rate Increases. Shippers on the transpacific eastbound route from Asia to the US West Coast saw a sharp spike in its rates, with Drewry’s World Container Index (WCI) going up by 26 per cent week-on-week. The Shanghai-Los Angeles route saw rates shoot up by $913 per 40ft, closing out the week at $4,499 per container, reports The Load Star.
Short-Term Index Reflects Upward Trends
Xeneta’s XSI short-term index, which monitors transpacific routes, also recorded a 10% week-on-week rise, reaching $4,391 per 40ft container. Analysts at Drewry commented, “We expect an increase in rates on the transpacific trade in the coming week, driven by front-loading ahead of the looming ILA port strike in January and anticipated tariff hikes under the incoming Trump administration.”
Carriers File January GRIs
A few transpacific carriers have filed GRIs effective 1 January. Cosco, Evergreen, Hapag-Lloyd, HMM, and Yang Ming will look for $3,000 per 40ft container, while CMA CGM and Zim have already planned $2,000 increases. ONE will look for a $1,000 per 40ft container increase. These are expected to continue the trend of rate increases in transpacific lanes.
Transatlantic Spot Rate Increases
Transatlantic shippers also faced rising spot rates this week. The WCI’s headhaul Rotterdam-New York route increased by 3% week on week to $2,713 per 40ft container, reflecting an 83% year-on-year growth. Similarly, the transatlantic portion of the XSI reported a 3% increase, reaching $2,814 per 40ft container.
Further rate hikes are anticipated as carriers introduce additional surcharges. MSC announced, “In light of the significant changes in the transatlantic networks to restructure the services beginning of 2025, we foresee operational disruption during the first months of next year. For this reason, MSC announces the increase of the Emergency Operation Surcharge (EOS) as from 18 January until further notice.”
Variables Impacting Transatlantic Rates
The planned EOS go-live date falls three days after the 15 January ILA-USMX negotiation deadline. With this negotiation unresolved, shippers facing transatlantic routes into the new year are uncertain about several issues.
Somewhat Quiet Week for Asia-Europe Routes
Asia-Europe shipping lines were relatively quiet this week. The WCI Shanghai-Rotterdam route edged down 1% at $4,819 per 40ft container, reversing a marginal GRI-induced uptick last week. Its sister route, Shanghai-Genoa, fell 2%.
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Source: The Load Star
