In the latest Xeneta Weekly Ocean Container Shipping Market Update, average spot rates from the Far East to the Mediterranean have seen a notable increase of 6.8%, now standing at USD 3,270 per FEU as of April 15. Conversely, the average spot rates from the Far East to both the US East Coast and US West Coast have remained stable throughout April, at USD 3,951 and USD 2,910 per FEU, respectively. Additionally, rates from the Far East to North Europe experienced a 4.8% rise, reaching USD 2,457 per FEU. However, when reviewing the broader picture, it’s evident that overall average spot rates on fronthaul trades have declined significantly since January.
Specifically, rates from the Far East to the US East Coast are down by 43%, while those to the US West Coast have decreased by 50%. Similarly, rates from the Far East to North Europe and the Mediterranean have fallen by 49% and 44%, respectively. The only relative stability can be seen in the North Europe to US East Coast route, which remains flat at USD 2,158 per FEU. Looking ahead, shipping capacity from the Far East to North Europe is set to reach an all-time high in the week starting April 14.
This eclipses previous records established during the Covid-19 disruptions in November 2021. According to Xeneta’s Chief Analyst Peter Sand, the increase in shipping capacity paired with rising spot rates indicates a tense market situation. There is speculation that shippers may be redirecting goods to Europe due to tariff concerns, which could further amplify pressure on rates. Moreover, North European ports are currently experiencing significant congestion, primarily attributed to weather, crane maintenance, and labor-related issues.
While high capacity levels could lead to complications upon arrival in North Europe, the situation also signals potential challenges in June, as lengthy transit times of about 55 days may exacerbate existing port delays. Past experiences have shown that such congestion can adversely affect global supply chains.