Freightos Baltic: Transpacific freight rates skid as November gains evaporate

Transpacific container freight rates fell sharply this week, reversing the gains made since mid-October as soft seasonal demand and ample capacity continued to weigh on shipping rates. 

West Coast rates dropped 6% week-on-week, with daily assessments so far this week falling more than 20% to around $2,100/FEU, returning to post-October GRI levels. East Coast rates followed a similar pattern, retreating over 20% to roughly $3,000/FEU, back to pre-October GRI territory. 

Although several carriers have announced general rate increases for December, this week’s steep declines may prompt a reassessment.

In contrast, Asia–Europe and Mediterranean routes remained broadly stable at $2,480/FEU and $2,827/FEU respectively. Market participants attribute the relative firmness to blanked-sailing programmes during the tender season, with additional GRIs planned that could push rates toward the $3,000–$4,000/FEU range in the coming weeks.

Meanwhile, Washington announced new tariff exemptions last week ahead of a forthcoming Supreme Court ruling on the legality of its IEEPA-based tariffs. The exemptions cover certain agricultural imports not produced domestically, as well as beef, in an effort to ease cost-of-living pressures. The administration also outlined frameworks for potential trade agreements with several South American countries and Switzerland.

Since October, carriers have navigated soft seasonal demand and rising capacity across East–West trades. Mid-October GRIs temporarily lifted rates off two-year lows, followed by further increases on 1 November. The sustainability of December adjustments now depends on carriers’ capacity management amid continued weak demand.

Written by: Farid Muzaffar