According to a recent report from Xeneta, container spot freight rates on key east-west routes have remained largely stagnant for yet another week. The anticipated surge in peak season volumes has yet to appear, and shipping companies’ efforts to align capacity with the sluggish demand have not resulted in any price increases. Emily Stausbøll,a senior shipping analyst at Xeneta,noted that the absence of a typical peak season is especially concerning for carriers operating between the Far East and both North europe and the Mediterranean.
Stausbøll pointed out that while carriers may have anticipated this downturn, managing it is indeed still challenging due to significant overcapacity within the global fleet. An Asia-Europe forwarder echoed her sentiments by stating there’s no indication of an upcoming peak in westbound trade from the far East to Europe; instead, short-term rates are trending downward.
In August, average spot rates from the Far East to the Mediterranean are expected to continue their decline while those heading into North Europe might hold steady for now. This shift means that rate differences between these two routes will narrow substantially—an notable change considering they were $1,720 apart just mid-July.
Interestingly enough, some indices indicate that North European rates have already surpassed those of Mediterranean shipments. For instance, Freightos reported a China-Mediterranean spot rate at $3,399 per 40ft container—a 5% drop compared to last week—while China-north Europe was slightly higher at $3,419 per 40ft but down by 4%. Drewry’s World Container Index showed similar trends with Shanghai-Genoa remaining stable at $3,362 per 40ft and Shanghai-Rotterdam slightly lower at $3,290 per 40ft.
The situation worsens on transpacific routes where overcapacity has become almost routine. the WCI recorded further declines: Shanghai-los Angeles dropped by another 2% this week down to $2,632 per 40ft; similarly for shanghai-New York which also fell by 2%, ending up at $4,135 per container.
These figures reflect broader trends seen in Freightos data as well: China-US west coast rates held steady at $2,334 per container while east coast prices dipped by about 7%, landing around $4,113 per unit. Stausbøll remarked that average spot rates on major hauls from Asia to America are now hitting their lowest as December last year—with expectations of continued decreases throughout August bringing them closer to pre-red Sea crisis levels.
Despite multiple trade agreements being struck by the US government recently aimed at boosting cargo flow through late 2025—such as deals with EU nations—the impact appears minimal so far according to industry insiders who note little change in transatlantic traffic patterns or pricing stability around $2K for westbound shipments.
While shippers might find some relief through falling freight costs ahead of them due primarily due tariffs imposed earlier this year could still pose financial challenges moving forward into next year’s logistics landscape—a reality Stausbøll emphasizes should not be overlooked amidst these fluctuating market conditions.
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