- Average spot rates on key Far East fronthauls continue to decline, bringing levels closer to pre-Red Sea crisis benchmarks.
- The steepest recent weekly drop was on the Far East–North Europe trade, while Transatlantic routes remained largely stable.
- Analysts warn carriers may return to losses in Q4 despite profits earlier in 2025, while shippers are advised to focus on upcoming tenders to secure better rates and services.
Xeneta’s latest weekly update (28 August 2025) shows continued gradual declines in average spot rates across major trade lanes, with prices edging closer to levels last seen before the Red Sea crisis.
Spot Rate Developments
On 28 August, average spot rates stood at USD 1,852/FEU from the Far East to the US West Coast, USD 2,873/FEU to the US East Coast, USD 2,811/FEU to North Europe, USD 3,122/FEU to the Mediterranean, and USD 1,921/FEU from North Europe to the US East Coast.
The steepest week-on-week decline was recorded on the Far East–North Europe route, down 3.6%, while the Far East–Mediterranean trade slipped 0.6%. Rates to the US West Coast and East Coast also fell slightly, down 0.6% and 0.5%, respectively. The Transatlantic trade from North Europe to the US East Coast remained flat week-on-week.
Since the end of July, the largest drop has been on the Far East–US East Coast, where spot rates have fallen 21%. Rates to the US West Coast declined 13.3%, while North Europe and Mediterranean trades dropped 16.4% and 14.5%, respectively. The Transatlantic trade was comparatively stable, down only 3.5%.
Despite recent declines, spot rates remain above pre-Red Sea levels (1 December 2023 benchmark): +13% into the US West Coast, +16% into the US East Coast, +86% into North Europe, and +68% into the Mediterranean.
Analyst Insight
“Further gradual decline means spot rates are moving closer to pre-Red Sea crisis levels. The last time we saw rates this low prior to escalation in the Red Sea, carriers were posting big losses. Carriers may still make big bucks in 2025 overall, but this profit will have been made during the volatility earlier in the year, with Q4 returning to loss-making in isolation,”
said Peter Sand, Xeneta Chief Analyst.
Sand noted that shippers endured exceptionally high freight costs through 2024–2025, with Far East–US East Coast rates peaking near USD 10,000/FEU in July 2024.
“Shippers have been battered by higher freight costs and tariffs during 2024 and 2025, with average spot rates from Far East to US East Coast almost touching USD 10 000 per FEU in July last year. Shippers will not feel too much sympathy for carriers now the situation is turning back in their favor,” he added.
Looking forward, Sand encouraged shippers to focus on upcoming negotiations.
“It is important shippers do not look back in anger at the higher freight rates they paid, they cannot recoup this money. Instead, they should be looking forward to the next tender season as an opportunity to strike a better freight rate as well as enhanced service delivery.”
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Source: Xeneta
