Ocean spot rates from Asia to North America are declining as seasonal demand eases, according to Judah Levine, head of research at Freightos. During the week of Jan. 28, rates per forty-foot equivalent unit from Asia to the U.S. West Coast fell 7% week over week, meanwhile prices from Asia to the East Coast declined 1% week over week.
Jan. 28 Ocean Freight By The Numbers
$4,938/FEU
Spot prices from Asia to the U.S. West Coast, down 7% week over week
$6,656/FEU
Spot prices from Asia to U.S. East Coast, down 1% week over week
$4,122/FEU
Spot prices from Asia to North Europe, down 12% week over week
$5,075/FEU
Spot prices from Asia to the Mediterranean, down 4% week over week.
Transpacific rates have generally declined in January, but prices remain doubled compared to 2019 levels as Red Sea diversions continue to absorb market capacity, Levine said.
There is hope the ocean market will stabilize with the recent Israel and Hamas ceasefire, but carriers have not returned to the Red Sea just yet.
Maersk said in a Jan, 24 update it will continue to sail around Africa via the Cape of Good Hope until it considers it safe to transit the Red Sea. CMA CGM also said it would continue to prioritize alternative routes.
Meanwhile, tariffs continue to be a concern for shippers. President Donald Trump. President Donald Trump said last week he plans to pose a 10% tariff on China-based imports as soon as Feb. 1. As a result, shippers continue to frontload cargo to mitigate potential disruptions, experts noted.
“The anticipation of Trump administration tariff hikes will cause continued frontloading until tariffs are rolled out, which will also keep demand higher than it otherwise would be in Q1 and possibly into Q2,” Levine said. In turn, higher demand may push up rates.
Uncertainty remains about which countries will be tariffed and when additional tariffs will be placed, but companies remain ready, according to Brian Bourke, global chief commercial officer at Seko Logistics.
Companies have already reacted to tariff concerns by diversifying their supply chains and frontloading cargo. There will be more of a reaction from shippers after more tariff details are revealed, Bourke said.
Sources: Supply Chain Dive and Freightos
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