Container shipping rates from East Asia and China to the U.S. have increased this week due to peak season demand and capacity control by shipping companies. Rates for the U.S. West Coast range from $7,075 to $8,330 per 40-foot equivalent unit (FEU), while rates for the East Coast range from $9,165 to $12,000, marking the highest rates since mid-2022.
Impact of Peak Season Demand on Rates
Robert Khachatryan, founder and CEO of Freight Right Logistics, stated that transportation capacity has decreased since early September due to strict control by companies over available space. This control includes trip cancellations and reservation adjustments. Khachatryan also identified scheduling of ships as a major concern, saying: "Ship schedules have become increasingly unreliable. A shipment can secure space, yet its scheduled departure date may be delayed by several days." He continued that if reservation adjustments are combined with delays in ship departures, total delays could reach two weeks.
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Rates for Other Routes and Current Impacts
Rates from the online platform Freightos have also increased by 3% for the West Coast and 2% for the East Coast. Yehuda Levin, Head of Research at Freightos, stated that in addition to peak season demand, congestion at Asian ports has also put upward pressure on container shipping rates from Asia to the U.S. He also noted that port congestion and trip cancellations during holidays could mean that rates remain high even with a decrease in demand.
Rates based on the SCFI index, which tracks container rates from Shanghai, have increased by 0.7%, marking the eighth consecutive weekly increase and indicating a rise of over 20% during this period. Additionally, rates in the NYSHEX index have also risen by 7.5% for the West Coast and 4.7% for the East Coast.
Liquid Tanker Rates
Chemical tanker shipping rates reported by ICIS this week have been mixed. Rates on the transatlantic route have decreased due to lower summer demand. Most shipping companies on this route have indicated that there are immediate spaces and extra capacity for September. If this trend continues, rates may come under further pressure.
Lower water levels in the Rhine River have made some market participants cautious about transporting cargo to this region. However, large shipments of methanol and caustic soda continue to dominate the market, with several shipments recorded this week. Contract volumes (COA) for the first half of October have also remained steady.
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