Ocean container rates on trans-Pacific Asia-U.S. services continued their December rise, ahead of a possible longshore strike and tariffs concerns in the new year.
The Freightos Baltic Index for the week ending Dec. 17 showed Asia-U.S. West Coast rates increased 10% to $4,301 per forty-foot equivalent unit. Asia-U.S. East Coast prices gained 13% to $5,814 per FEU.
“The pull-forward for the strike is likely exhausted by now as the pre-Jan. 15 arrival window has closed,” wrote Judah Levine, head of research for Freightos. “But President-elect Trump’s recent explicit backing of the International Longshoremen’s Association and its opposition to even semi-automation introductions at these ports may make a strike, or at least a prolonged one, much less likely to happen. Anticipation of tariff hikes next year is likely still driving some unseasonal volume strength, also reflected in reports of a shortage in reefer containers.”
In contrast, Asia-North Europe rates decreased 5% to $5,051 per FEU while Asia-Mediterranean prices fell 2% to $5,761 per FEU.
“Asia-Europe/Mediterranean container rates ticked down slightly last week, though mid-month GRIs [general rate increases sought by ocean carriers on contracts] will attempt to push rates up soon,” Levine wrote. “But current rates of more than $5,000 per FEU remain very elevated. Prices are 12-18% higher than at the end of November and more than 40% higher than in October due to the Red Sea diversion-driven early start to pre-Lunar New Year demand this year. This volume increase is combining with some bad weather in the Far East to cause congestion at some container hubs in Japan and China.”
As trans-Pacific rates rebounded, GRIs are expected there as well.
“Even with last week’s gains though, prices remain lower than at the end of November. But relative to Asia-Europe, trans-Pacific rates have shown more buoyancy since the end of peak season due to frontloading ahead of a possible ILA strike on Jan. 15 and expected tariff increases with the incoming Trump administration.”
Find more articles by Stuart Chirls here.
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