Container freight rates from Asia have differed this week between the North American and European markets.
In the transpacific route, spot rates have continued to drop after a brief spike last week. According to Drewry's World Container Index (WCI), this follows the trends observed in the Shanghai Containerised Freight Index (SCFI).
The spot rate from Shanghai to Los Angeles fell by 12% compared to last week, ending at $2,328 for a 40ft container. Meanwhile, the Shanghai-New York rate dropped 15%, finishing at $3,254 for a 40ft container.
If the SCFI continues to serve as a “forward curve” for the WCI, carriers may face further declines. Today, the SCFI’s reading for the Shanghai-US west coast route decreased by another 18% week-over-week, settling at $1,823 for a 40ft container.
The SCFI’s reading for the Shanghai-US east coast route showed a 9% decline from the previous week, ending at $2,600 for a 40ft container.
These figures align with data from US freight forwarder True Freight, which reported that the China-US west coast rate is now around $1,700–$1,750 for a 40ft container, while the east coast is slipping to approximately $2,500–$2,700.
“The difference between ‘special’ rates offered to freight forwarders and the carriers’ ‘fixed’ advertised rates is continuing to decrease. Currently, there is only about a $100 gap between these rates for both the US West Coast and East Coast,” noted the forwarder.
“We expect container rates to keep falling, with rates for the US West Coast and East Coast moving closer to September levels if bookings remain weak.”
“There might be a temporary General Rate Increase (GRI) in December, but it could be short-lived without a stronger demand,” they added.
Some carriers have announced a transpacific GRI starting December 1, ranging between $1,000 and $3,000 for a 40ft container, depending on the carrier.
The transpacific route isn’t the only one experiencing price declines; the transatlantic spot rate on the WCI dropped 2% from last week, settling at $1,633 for a 40ft container. This is about 25% lower than the “historical” market rate of around $2,000 and marks one of the lowest points since the second half of 2023.
On the other hand, spot rates on Europe-Asia routes have continued to rise, driven by new freight all kinds (FAK) price increases.
This week, the Shanghai-Rotterdam rate on the WCI increased by 3% compared to last week, reaching $2,038 for a 40ft container—its first time over $2,000 since early September.
The WCI’s Shanghai-Genoa leg increased by 4% from the previous week, closing at $2,193 for a 40ft container.
“Carriers on the Asia–Europe route are trying to raise spot rates by introducing higher FAK rates, ranging from $3,000 to $3,650 for a 40ft container, effective November 15, in an effort to boost rates ahead of the upcoming annual contract negotiations,” Drewry mentioned.
These efforts are likely to continue next month. MSC announced another new FAK level for the Asia-Europe trade to take effect from December 1, seeking $3,100 for North European ports—a 50% increase within just two weeks—and $3,950 for the west Mediterranean and $3,800 for the east Mediterranean destinations.
If these increases succeed, they could nearly double the current spot rates for Asia-Mediterranean routes.