Freightos Weekly Update: Asia – US air rates already nearing last year’s high on peak season volumes

Even with more container vessels routing back through the Red Sea on Asia – Europe services, and estimations of slumping post-peak demand, carriers have been able to push rates up 10% to N. Europe and 23% to the Mediterranean over the past month.

Prices ticked up 3% last week to $4,375/FEU to the Mediterranean and were about level at $3,595/FEU to N. Europe. Congestion in N. Europe hubs, as well as some lingering backlogs in the Far East may be helping put some degree of upward pressure on rates, with a recent one-day port worker union strike across many ports in Europe as well as other regions, possibly adding to backlogs.

Carriers planned GRIs of $1,000 – $1,500/FEU for these lanes to start the month and additional increases for mid-November. Daily rates so far this week have stayed flat, but the coming days will indicate if carriers go through with the price hikes and if they’ll succeed, with some forwarders skeptical that market conditions will support further increases.

Even with transpacific rates still at peak levels, carriers have GRIs of $2,000 – $3,000/FEU set to start the month for these lanes as well, though here too rates so far this week have not climbed and some forwarders think more increases are unlikely as this trade finally enters slow season. East Coast rates cooled 6% compared to last week’s bump, but are still $200/FEU higher than two weeks ago at about $9,900/FEU, with West Coast prices about level since climbing to the $8,300/FEU range in September.

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