Transpacific container rates rise as shippers prepare for the Lunar New Year, with Red Sea diversions causing longer lead times, reports American Shipper.
Transpacific container rates are experiencing an upward trend as shippers move cargo early in anticipation of the Lunar New Year. Additionally, Red Sea diversions are contributing to longer lead times, according to reports from American Shipper.
Freightos data indicates that Asia-Europe prices increased by one percent last week, reaching US$2,742 per FEU, which is 12 percent higher than mid-December. Meanwhile, Asia-Mediterranean rates climbed four percent to $4,000 per FEU, marking the highest level since July.
Analysts attribute the elevated prices to early pre-holiday demand. Chinese factories are set to close for several weeks starting February 17, prompting shippers to secure space in advance.
Carriers are testing the return of mega-vessels to the Red Sea-Suez Canal route; however, safety and cost concerns persist. The recent bombing of Yemen's Port of Mukalla by Saudi Arabia on December 30 has heightened risks amid Houthi threats and regional instability.
On Asia-US lanes, west coast rates have risen nine percent to $2,145 per FEU since mid-December, while east coast prices have increased by 15 percent to $3,364 per FEU. Analysts expect demand to keep rates firm as the holiday approaches.
Despite weaker US imports, global container volumes grew four percent through early Q4. S&P projects a two percent decline in US imports by 2026, marking the third consecutive year of contraction in two decades.
