The news
Spot rates to ship a 40-foot container from Asia to the US West Coast fell 1% to $8,245 in the week to Nov 10, according to the Freightos Baltic Index data. Asia-US East Coast rates fell 2% to $9,708.
A year ago, the same lanes cost $2,958 and $3,513 per container, respectively.
“This year’s many trade war twists and turns may have helped drive” an unusually long peak season, said Judah Levine, head of research at Freightos.
Why it matters: Importers booking transpacific freight still pay close to three times last year’s rates, even as carriers’ attempted November increases fail to stick.
The details
Rates eased as demand slowed and carriers’ November increases failed to take hold, but prices remain high. Frontloading, tariff timing and the prospect of IEEPA tariff refunds helped keep volumes elevated from May onward, Freightos said.
Higher diesel costs and the November expiration of the US-China trade truce, since extended, led some importers to ship early through ports such as LA.
Containers moving by rail through LA and Long Beach sat an average of 7.19 days in September, up from 6.75 days in August.
Asia-Europe rates fell further after carriers dropped plans for November increases on those lanes. Asia-North Europe rates fell 5% to about $3,400 per container, while Asia-Mediterranean rates slipped 1% to about $4,300.
Asia-US West Coast rates are nearly triple their year-earlier level, a much steeper increase than on Asia-Europe lanes.
Asia-North Europe rates are up about 36% from a year ago, while Asia-Mediterranean rates have risen about 52%.
What's next
Presidents Donald Trump and Xi Jinping are scheduled to meet in China next week. The two countries have also extended their pause on port call fees until January 10.
(Photo courtesy of the Port of Los Angeles)
