Container freight rates keep falling sharply, with weekly drops hitting double digits amid global trade uncertainty. Eastbound trans-Pacific routes show the steepest declines since July.
The Ningbo Containerized Freight Index (NCFI) stands at 1,762.8 points, down 7.8% weekly. Rates fell on 20 of 21 shipping routes.
Major Trade Lanes Decline
Drewry's WCI reported an 8% drop to $4,942/FEU — the 29th straight weekly decline. FBX fell 4% to $4,653/FEU. North American routes remain weak.
West Coast U.S. rates dipped below $3,000/FEU, while East Coast rates fell 8%. The west coast route dropped 9.8% weekly — a 64% decrease since January .
Shanghai-Los Angeles rates fell 11% to $4,252/FEU, while Shanghai-New York declined 5% to $8,477/FEU — down 47% yearly. FBX shows Asia-U.S. West Coast rates down 9% to $3,942/FEU.
"East Coast cargo shifts prevent steeper declines, but the market stays weak," said FBX analyst Judah Levine.
Blank Sailings Expected
As trans-Pacific demand falls, analysts predict more blank sailings. China's October Golden Week demand looks bleak.
More voyage cancellations are expected in September-October, especially for East and Gulf Coast ports.
European Routes Struggle
Overcapacity pressures Europe-Mediterranean rates. NCFI shows European routes down 6.3% weekly.
Drewry's WCI reports Shanghai-Rotterdam rates fell 10% to $6,671/FEU, while Shanghai-Genoa dropped 7% to $7,353/FEU.
Q3 lacks peak season patterns. Vessel space is ample but reliability suffers from cancellations and delays.
Hamburg and Rotterdam congestion worsens, delaying Asia return voyages.
Emerging Markets Drop
Middle East route prices plunged 15.3%, while West Coast South America rates fell 25.7%.
Spot rates fall faster than expected. Carriers increase blank sailings to match shrinking demand.
Of 750 scheduled sailings, 122 (16%) were cancelled . Trans-Pacific accounted for 68% of cancellations.
Three major alliances cancelled 101 sailings total. The industry faces tough challenges with no quick recovery in sight.