Far East to US Shipping Rates Up 150%, But Relief in Sight

February 21, 2024

Image Source: Xeneta

After spiraling at the peak of the Red Sea crisis, the rates from the Far East to the U.S. are starting to soften, a trend seen in Europe two weeks prior.

East vs. West Coast Spot Rates: From Feb 1 to 15, East Coast rates took a tiny step back from $6260 to $6100 per FEU. West Coast? A slight nudge down from $4730 to $4680.

Market Dynamics:

  • Following the last GRIs in early February, a slight relaxation in rates was observed.

  • Despite recent declines, spot rates remain substantially above their December 2023 levels (West Coast up by 185.9%, East Coast by 145.2%).

Looking Forward

  • With the TPM24 summit on the horizon, all eyes are on how these rates play into new contract talks. Carriers are crossing their fingers to keep those February rate hikes in place.

  • Also, the price gap between shipping to the East and West Coasts has expanded, peaking at over $1650! Now, it's at $1420 as of Feb 15. Food for thought for those deciding which coast to ship to.

So, What's Next?While we're seeing a bit of a cool-off, rates are still way higher than last year, and with contract talks coming up, things could get interesting.

Source: Xeneta

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