Spot container freight rates continue their dramatic decline, with weekly drops reaching double digits as global trade faces mounting uncertainty. The most striking decreases have been observed on eastbound trans-Pacific routes since late July.
According to the Ningbo Containerized Freight Index (NCFI) released by the Ningbo Shipping Exchange, the latest index stands at 1,762.8 points, marking a 7.8% week-on-week decrease. Among 21 shipping routes, 20 showed significant rate declines.
Steep Declines Across Major Trade Lanes
The Drewry World Container Index (WCI) reported an 8% drop in composite rates, now at $4,942 per forty-foot equivalent unit (FEU) — the 29th consecutive week of decline. The Freightos Baltic Index (FBX) showed similar trends, falling 4% to $4,653/FEU. North American routes remain particularly weak, with spot booking prices continuing to slide.
West Coast U.S. rates have fallen below $3,000/FEU, while east coast rates dropped 8% week-on-week. The west coast route saw a more dramatic 9.8% weekly decline, representing a 64% decrease since January .
Drewry's latest data reveals Shanghai-Los Angeles spot rates fell 11% to $4,252/FEU, while Shanghai-New York rates declined 5% to $8,477/FEU — a staggering 47% year-over-year reduction. FBX figures show Asia-U.S. West Coast rates down 9% to $3,942/FEU, with East Coast rates dipping 2% to $8,546/FEU.
"While cargo volume shifting to East Coast ports has prevented steeper rate declines, the overall market remains weak," noted FBX lead analyst Judah Levine.
Blank Sailings Loom as Demand Weakens
With demand and rates on trans-Pacific eastbound routes continuing to fall, analysts anticipate imminent blank sailings (cancelled voyages). The persistent market slump has led to pessimistic forecasts for China's October Golden Week demand.
Industry observers expect increased sailing cancellations in September and October as carriers attempt to reduce vessel calls, particularly at East Coast and Gulf Coast ports.
European Routes Face Similar Challenges
Overcapacity continues to depress rates on Europe-Mediterranean routes. NCFI data shows European route rates down 6.3% week-on-week, with East Mediterranean routes falling 1.6% and West Mediterranean routes declining 6.2%.
Drewry's WCI indicates Shanghai-Rotterdam spot rates dropped 10% to $6,671/FEU, while Shanghai-Genoa rates fell 7% to $7,353/FEU.
The third quarter has failed to show traditional peak season patterns, with demand remaining sluggish ahead of the Golden Week holiday. While vessel space remains ample, schedule reliability suffers from widespread sailing cancellations, delays, and port omissions.
European port congestion — particularly in Hamburg and Rotterdam — has reached critical levels, causing further vessel delays and pushing back return voyages to Asia.
Emerging Markets See Dramatic Declines
The Ningbo Shipping Exchange reports Middle East route spot booking prices plunged 15.3% due to weak demand, while competitive pressures drove West Coast South America rates down 25.7%.
The container shipping market continues to weaken, with spot rates falling faster than anticipated. Carriers are responding aggressively by increasing blank sailings on major east-west trade routes to match shrinking demand.
Drewry statistics reveal that of 750 scheduled sailings across trans-Pacific, Asia-North Europe, and Asia-Mediterranean routes during weeks 38-42, 122 voyages (16%) were cancelled . The trans-Pacific eastbound trade accounted for 68% of cancellations, with Asia-Europe/Mediterranean routes making up 24%.
The three major shipping alliances cancelled 101 sailings collectively: 2M Alliance (40), THE Alliance (33.5), and Ocean Alliance (27.5). The shipping industry faces significant challenges with no clear signs of immediate recovery.
