March 20, 2025 Replace | Freightos

Weekly highlights

• Asia-US West Coast costs (FBX01 Weekly) fell 10% to $2,397/FEU.     
• Asia-US East Coast costs (FBX03 Weekly) fell 6% to $3,537/FEU. 
• Asia-N. Europe costs (FBX11 Weekly) fell 11% to $2,740/FEU. 
• Asia-Mediterranean costs (FBX13 Weekly) fell 9% to $3,792/FEU. 

• China – N. America weekly costs elevated 10% to $5.06/kg.
• China – N. Europe weekly costs elevated 28% to $3.87/kg.
• N. Europe – N. America weekly costs elevated 3% to $2.43/kg.

Evaluation

Ocean container charges out of Asia continued to fall final week, slipping beneath 2024 lows on a mix of a post-Lunar New 12 months lull in demand, impacts from the new service alliance providers nonetheless shifting into place, and capability development. 

Asia – Europe costs dipped 11% to $2,740/FEU, 14% decrease than their 2024 ground and Asia – Mediterranean charges eased 9% to lower than $3,800/FEU, 10% decrease than the nadir on this lane final yr. The post-LNY demand hunch could also be extra pronounced than ordinary on these lanes as shippers stocked up forward of the vacation to account for Purple Sea diversion-driven lead time will increase. However charges are falling regardless of congestion at many European hubs, and a few carriers have introduced April GRIs in response although March will increase had been largely unsuccessful. 

There are indications of some frontloading-driven demand power on the transpacific. Eventual tariff roll outs or sufficient stock construct ups would put an finish to this pull ahead and can seemingly imply a weaker than ordinary H2. 

And although the tariff panorama stays extraordinarily unsure, federal company findings that would result in sharp tariff will increase on China, reciprocal tariffs on an extended checklist of nations, the USTR’s proposed port charges on Chinese language-made vessels, in addition to the reinstatement of 25% tariffs on all Canadian and Mexican imports are due in early April. The Federal Maritime Fee additionally lately opened an investigation into international authorities roles in container chokepoints.

However regardless of the present relative demand power, transpacific container charges continued to fall final week as properly.  At about $2,400/FEU and $3,500/FEU to the West and East Coasts respectively, costs are already 18% beneath their 2024 lows. Along with the alliance reshuffle, the present fee weak point on these lanes can also level to fleet development pushed overcapacity first seen in collapsing charges in 2023 however largely held at bay since early final yr by Purple Sea diversions absorbing capability. 

The anticipated demand drop when frontloading ends and analyses that – regardless of the present international benchmark fee nonetheless greater than 70% larger than in 2019 because of the Purple Sea disaster – the market will grow to be oversupplied even when diversions proceed could also be mirrored in studies of transpacific ocean contracts negotiations trending towards charges decrease than carriers had hoped. 

In air cargo, Freightos Air Index ex-China charges rebounded considerably final week to above $5.00/kg to the US and to greater than $3.80/kg to Europe regardless of some indications that e-commerce demand to North America has began to ease. Transatlantic charges of $2.43/kg final week had been 15% larger than at first of the yr, probably pointing to some frontloading forward of anticipated US tariff will increase on European buying and selling companions.