Dive Brief:

• Transpacific ocean rates cooled slightly last week despite rates at peak levels since July, according to Freightos’ weekly update from Sept. 8.
• When compared week over week, Asia to U.S. West Coast spot rates fell 1% at $7,569 per forty-foot equivalent unit, according to the Freightos Baltic Index. Asia to U.S. East Coast spot rates are at $9,505 per FEU, down 3% week over week.
• Rates for the Transpacific trade lane are roughly in line with levels seen during the 2024 peak season. At the time, Red Sea disruptions to capacity were taking place along with frontloading due to the East Coast labor strike, which pushed up rates sharply, per Freightos.

Source: Freightos

Dive Insight:

Peak season is in its final weeks. With ocean rates coming down, Freightos’ weekly update suggested additional increases are unlikely on the Transpacific trade lanes.

Although elevated demand from early May and through late July have kept rates elevated, congestion at some Asia ports is also playing a factor.

A series of typhoons have hit the region since mid-July. Typhoon Saudel disrupted operations at the ports of Ningbo and Shanghai in China, according to an update from Kuehne + Nagel from Sept. 4. Ningbo was closed for 78 hours before Sept. 3 and Shanghai had about 42 vessels at berth and 99 vessels at anchorage, last week, the company reported.

Freightos added that the typhoon “disrupted operations as far north as Busan [South Korea] and could stay strong enough to impact Shenzhen.”

About two weeks ago, the series of storms prevented ports from clearing their backlogs before shutdowns, and ocean carriers skipped calls at backed up ports. This led to increased transshipment volumes at other ports in the region, Freightos said.