Container spot freight rates from Asia decline as US ports resume operations

Posted on October 14, 2024   |  

Container spot freight rates from Asia continued to decline this week as US East and Gulf Coast ports resumed operations, easing concerns about congestion.

The 3-day stoppage by ILA members left up to 70 vessels stranded, creating a backlog that may take a few days to two or three weeks to clear, but this is unlikely to affect rates.

Ocean freight rates to both coasts had been falling before the strike and continued to drop during the closures, now over 30% lower than the highs reached in July.

Ocean carriers announced surcharges between $1,000 and $4,500 per 40ft container in anticipation of potential disruptions from the strike.

Spot rates on the Shanghai-New York route fell 3% week-on-week to $5,761 per 40ft, while rates on the Shanghai-Los Angeles route decreased 5% week-on-week to $5,071 per 40ft.

Carriers have started increasing the number of canceled sailings on major east-west routes as demand weakens.

Drewry’s weekly tracker reported 69 canceled sailings between October 14 and November 17 across transpacific, transatlantic, and Asia-Europe routes, leading to a 10% cancellation rate out of 693 scheduled sailings.

During this time, 58% of blank sailings will occur on the transpacific eastbound route, 26% on Asia-Europe, and 16% on the transatlantic westbound route.