Shipping container rates from East Asia and China to the US fell sharply this week, according to supply chain advisory Drewry. Rates declined by 12% to the US West Coast and 11% to the East Coast, continuing a steady downward trend since early January. Drewry anticipates further reductions in the coming weeks.
Judah Levine, head of research at Freightos, noted that transpacific rates are likely to remain elevated in the near term due to the upcoming Lunar New Year holiday, before easing as post-holiday demand softens. The Shanghai Containerized Freight Index (SCFI) recorded a third consecutive week of spot rate declines.
Robert Khachatryan, founder and CEO of Freight Right Logistics, said the carriers’ early-January attempt to push rates higher “has largely failed.” He added, “After a short-lived test of higher pricing at the start of the month, rates are now stabilizing at levels closer to the fair market baseline rather than the peak-season highs carriers had hoped for.”
Meanwhile, chemical tanker rates from the Americas showed a mixed picture this week. Some trade lanes experienced lower or flat rates, while only a single route recorded an increase. Limited vessel space remains a constraint for January and early February shipments.
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US Gulf to Rotterdam: Activity has increased, with January space nearly full. Caustic soda, monoethylene glycol (MEG), and styrene have been in demand. Strong clean petroleum products (CPP) volumes are supporting higher rates for larger parcels.
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US Gulf to Asia: Vessel space remains scarce in January, creating backlogs that have weighed on spot rates. Contract of affreightment (COA) nominations for February are strong, particularly for specialty chemicals.
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US Gulf to Brazil: Some vessel space is still available in late January and early February. Rates are expected to soften as fully open vessels become more common.
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US Gulf to India: The market remains steady with multiple spot inquiries, including large parcels of acetic acid, MEG, and ethanol, which are keeping rates firm.
The early-year market activity highlights the balancing act between limited capacity, fluctuating demand, and carrier pricing strategies, as the shipping and chemical logistics sectors navigate post-peak season adjustments.