Container spot rates rose again this week on the Asia-Europe, transpacific and transatlantic trades, even as the peak shipping season winds down. Carriers are responding by cutting more sailings and rolling out new pricing in an attempt to keep rates from sliding further heading into November.

Asia-Europe Rates Climb for a Second Week

After three months of declines following the peak season, Asia-Europe spot rates rose for a second straight week, according to Drewry's World Container Index. The Shanghai-Rotterdam leg increased 3% week on week, while Shanghai-Genoa rose 5%. These increases followed similar moves in the Shanghai Containerised Freight Index the prior week, though analysts noted that actual rates carriers are quoting remain below the index's published levels, and some forwarders in China continue to receive unsolicited discounted offers.

More Blank Sailings to Tighten Capacity

To prevent rates from falling as November approaches, carriers are blanking more sailings. Eight blank sailings have been announced for next week on Asia-Europe routes, up from two this week, a move Drewry says points to tightening capacity. Carriers are also introducing new freight-all-kinds (FAK) pricing for 1 November. MSC announced new FAK rates for Asia-North Europe and Asia-Mediterranean services, while CMA CGM set similar levels for Mediterranean routes. However, some of these new rates are only modestly higher than levels introduced earlier in October, and analysts at Linerlytica expect the new pricing attempts to struggle to hold, with European forwarders reporting discounted FAK offers throughout the first half of the month and expecting the pattern to continue into November.

Transpacific Rates Rise More Modestly

On the transpacific trade, spot rates grew at a slower pace. The Shanghai-Los Angeles leg rose 2% week on week, and Shanghai-New York rose 1%. Blank sailings on this route fell to two for next week, down from six, which Drewry linked to more effective capacity management. Drewry expects rates to hold steady next week given continued US import demand. At the same time, a US west coast forwarder noted signs of a seasonal slowdown, with peak season volumes beginning to decline just as more capacity enters the market and some carriers offer discounts to win business. One carrier was reported to be offering rates well below the market average, though space on those sailings was fully booked through October. A spot rate of around $8,000 per 40ft was described as now common on the Asia-US east coast trade, with space conditions on the east coast easing in line with the west coast after earlier tightness.

Transatlantic Rates Continue Months-Long Run

Westbound transatlantic rates rose again this week, with the Rotterdam-New York rate up 3% week on week. This extends a months-long stretch in which the rate has stayed above $3,000 per 40ft, and it now sits well above year-ago levels.

What This Means for Shippers

Shippers and forwarders booking on Asia-Europe lanes should expect continued upward pressure on rates into November, though the size and durability of new FAK pricing remains uncertain given reports of discounting below published levels. On the transpacific, rate increases look more modest and capacity is easing on both coasts, which may give shippers more room to negotiate as the peak season tapers off. Those moving cargo on the transatlantic westbound route should plan for rates that have stayed persistently elevated for months, with no signs of relief yet. Given the mix of blank sailings and shifting FAK announcements, cargo owners should track capacity updates closely and build some flexibility into booking plans, since actual rates may diverge from carriers' published pricing in either direction.

Sources: theloadstar.com