Trans-Pacific container rates declined last week as Chinese manufacturing and logistics activity slowed ahead of the Lunar New Year holiday, which began on Wednesday.
Asia-U.S. West Coast ocean freight rates dropped 7% to $4,938 per forty-foot equivalent unit (FEU) for the week ending Jan. 24, according to the Freightos Baltic Dry Index. Meanwhile, Asia-U.S. East Coast rates dipped 1% to $6,656 per FEU.
Factories and logistics services across Asia typically shut down for 15 days during the Lunar New Year.
"Trans-Pacific rates to the West Coast have fallen 17% since mid-January, while Asia-Europe prices are down 25% from just a few weeks ago," said Judah Levine, head of research at Freightos. "However, at around $5,000/FEU and $4,000/FEU respectively, these rates remain more than twice 2019 levels as continued Red Sea diversions strain market capacity."
Levine added that although the six-week phase one Israel-Hamas ceasefire is now in its second week and Houthi attacks on passing vessels have temporarily paused, most carriers remain cautious and are unlikely to resume Red Sea traffic without confidence in long-term stability.
French carrier CMA CGM has been the only major liner to maintain regular service through the Suez Canal via its BEX2 service, connecting Shanghai and Beirut.
Shippers have also been frontloading cargo in response to tariff threats from former President Donald Trump, which could keep ocean freight volumes and rates elevated through the first quarter and potentially into the second quarter. However, Levine noted that once the tariffs take effect, a pull-forward could result in lower volumes and rates.
Freightos reported that Asia-North Europe prices fell 12% to $4,122 per FEU, while Asia-Mediterranean rates declined 4% to $5,075 per FEU.
Trump has announced plans to impose 25% tariffs on trade from Canada and Mexico starting Feb. 1. However, his broader tariff threats, including those linked to political disputes such as the repatriation of U.S. deportees to Colombia, introduce uncertainty about whether all proposed levies will be enforced. Canada and the European Union have signaled potential retaliatory tariffs that could impact U.S. exports.
The upcoming February rollout of new ocean carrier alliances, such as Maersk and Hapag-Lloyd’s Gemini—a hub-and-spoke model promising 90% schedule reliability—could also influence freight rates, though the extent remains uncertain.
According to the annual Global Liner Performance report by analyst Sea-Intelligence, global schedule reliability in December fell to 53.8%, staying within the 50%–55% range for all of 2024. The average delay for late vessels, however, improved to 5.28 days—the lowest since July 2024.
Source: www.freightwaves.com
Comments