Eastbound trans-Pacific ocean container spot rates have experienced a significant decline this week due to recovering container ship capacity and lower volumes post-Lunar New Year. The Freightos Baltic Daily Index spot rate from China to the West Coast of North America fell by 17.8% this week, reaching $2,976 per forty-foot equivalent unit. The Drewry’s World Container Index also saw a decline to $3,825 per FEU from Shanghai to Los Angeles. Despite China’s growing industrial activity, reflected in the Caixin manufacturing purchasing managers’ index, China-U.S. trade hasn’t yet shown significant growth. Export volumes from China to the United States appear to be lagging, possibly due to shifting container flows through Mexican ports to avoid tariffs. Steamship lines are attempting to stabilize rates, but the impact hasn’t been substantial. While total capacity on China to U.S. routes has decreased and rejection rates have risen slightly, indicating a slight tightening in the market, lead times have normalized. Additionally, the westbound lane on the trans-Pacific is experiencing exceptionally low rates, with shippers benefiting from historically low rates for goods moving from the West Coast back to China.

Inspired by: https://www.freightwaves.com/news/trans-pacific-container-rates-plunge-again