Container Spot Rates Decline for Fourth Straight Week

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Global container spot rates have declined for a fourth consecutive week, pushing the benchmark Drewry World Container Index below $2,000 per 40-foot container. The weaker pricing reflects subdued booking activity ahead of factory shutdowns in China, with carriers responding by tightening capacity through increased blank sailings. Spot rates on the trans-Pacific and Asia-Europe trade lanes have both seen significant decreases, signaling improving freight cost conditions for U.S. importers in the near term.

Why it matters

The extended slide in container spot rates suggests a softer freight environment for U.S. importers as seasonal demand fails to materialize. However, pricing remains sensitive to capacity adjustments by carriers, so further downward pressure on spot rates is likely in the weeks ahead.

The details

The Drewry World Container Index fell 7% to $1,959 per 40-foot container in its Feb. 5 assessment, driven primarily by falling rates on the trans-Pacific and Asia-Europe trade lanes. On the trans-Pacific, spot rates from Shanghai to Los Angeles dropped 8% to $2,239 per 40-foot container, while rates to New York declined 5% to $2,819. Asia-Europe routes also posted their fourth straight weekly decrease, with rates from Shanghai to Rotterdam falling 9% to $2,164 per 40-foot container and Shanghai to Genoa dropping 7% to $3,048.

• Drewry's Container Capacity Insight shows operators have announced 18, 27 and 28 blank sailings over the next three weeks.
• Carriers have also announced 9, 16 and 9 blank sailings on Asia-Europe lanes over the same three-week period.

What’s next

With carriers continuing to manage sailings and demand expected to remain uneven, the firm said spot rates are likely to face further downward pressure in the weeks ahead, reinforcing a softer near-term outlook for global container shipping.