Freight rates from Asia to Europe hit $5,300/FEU, close to Lunar New Year peak prices

Ocean rates from Asia to Europe and the Mediterranean rose to $5,300/FEU last week, similar to Lunar New Year levels from January.

The increase in rates is due to pre-Lunar New Year demand, as shippers aim to move enough inventory before the holiday slowdown.

Carriers are pushing for higher rates with mid-month General Rate Increases (GRIs) ahead of the Lunar New Year holiday in late January.

Transpacific shippers are not facing the same pre-holiday urgency, so rate increases are expected in a few weeks.

The possibility of an ILA port worker strike on January 15 has kept rates stronger than usual, prompting US ocean importers to frontload.

Seasonal demand for both ex-Asia lanes is expected to drive rates higher before and after Lunar New Year, though capacity increases may limit growth.

The upcoming carrier alliance reshuffle in February may lead to competition and downward pressure on rates into March.

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