Asia-US spot rates outshine contract rates in a landmark shift

Posted on August 14, 2023   |  

Shipping companies confront ongoing losses in trans-Pacific trade, with a recent surge in spot rates providing a potential turnaround.

Trans-Pacific yearly contract rates were reset to lower levels in May, but carriers emphasize their avoidance of locking in year-long losses.

A significant portion of trans-Pacific volume was booked at lower spot rates in recent months, impacting overall profitability.

Average trans-Pacific spot rates have now surpassed average contract rates, suggesting a more stable market ahead.

Short-term rates in the Far East-West Coast route reached $1,954 per forty-foot equivalent unit, marking a 4% rise over the $1,874 per FEU average for long-term contracts.

Importantly, this marks the first time since late June 2022 that average spot rates have exceeded average contract rates.