Asia-US East Coast spot rate climb stalls

Spot rate growth from Asia to the US East Coast has stalled. According to Drewry's World Container Index, pricing on the Shanghai-New York route dropped 2% week-on-week to $9,333 per 40ft. The Shanghai-Los Angeles rate went flat at $6,818 per 40ft after 9% growth the previous week.

Drewry expects resilience in demand and carrier capacity management will keep freight rates less volatile next week. It described the east-west container freight market as being "racked by uncertainty" amid geopolitical and operational pressures reshaping shipping routes.

However, sources questioned this logic. One source told The Loadstar that a push to resume Red Sea transits could lead to a surge of capacity and a rate crash. Another source concurred, asking why carriers would return to the Red Sea, a move they said would cause a massive drop in rates.

Not all indices agree. Freightos's FBX suggests growth may be slowing but pricing has not reversed. Its data shows Asia-US East Coast rates up 3% week-on-week to $9,576 per 40ft, and Asia-US West Coast rates up 1% to $7,491 per 40ft.

Diverging Market Performance

Linerlytica said east coast rates continue to outperform due to capacity remaining in short supply. This has been worsened by compounding congestion at Chinese ports and tightening draught restrictions on the Panama Canal. Transpacific demand continues to edge upwards, with strength expected into September.

This contrasts with sluggish European demand. There, reduced capacity failed to lift rates. On Asia-Europe trades, spot rates fell again. Shanghai-Rotterdam was down 3% to $4,287 per 40ft, and Shanghai-Genoa was down 2% to $4,866 per 40ft.

Vespucci Maritime CEO Lars Jensen said the post-peak slow downward slide continued for the seventh consecutive week. Over these weeks, North Europe rates are down 13% and Mediterranean rates are down 25%. For a deeper look at such market shifts, our stats page provides ongoing analysis.

Operational Pressures and Advice

Low water levels along the Rhine are not helping the situation, though one source noted some rain had fallen. Drewry advised shippers to book early and allow additional lead time to minimise rollover and transit-delay risks, as carriers adjust capacity through blanked sailings.

Linerlytica added that the difference in cargo strength is expected to last for at least one more month. Transpacific rates are expected to hold at current elevated levels. One source active in Asian markets told The Loadstar they were expecting much the same. Tracking these operational pressures, including port congestion, is a key feature of our fixtures data.

The following table compares recent spot rate figures from the major indices mentioned in the report: