XENETA Weekly Shipping Market Update: Falling Rates Welcome News For European Shippers In Tender Season While Transpacific Edges Downwards

Xeneta Weekly Ocean Container Shipping Market Update reports that falling freight rates are bringing good news for European shippers during the tender season, while the transpacific trade is showing a downward trend.

European shippers are experiencing substantial rate reductions, particularly in the Far East to Europe routes. The Mediterranean has been hit the hardest, with spot rates plummeting by 43% since July 1st, while North Europe has seen a 34% decline. Although the rate decrease has slowed down somewhat, it remains on a downward trajectory and has not yet reached its lowest point.

The difference in rates between the Mediterranean and North Europe routes highlights the varying volatility depending on the shipping origin and destination. The spread between these two trades ranged from USD 500 on October 1st, 2025, to a peak of USD 2,000 on January 1st, 2026. However, as of today, the spread has dropped below its level from the previous year, now sitting at just USD 400.

For European shippers in the midst of tender season, these falling short-term rates present a welcome opportunity. As negotiations for long-term contracts are underway, shippers can leverage these reduced rates as a benchmark and benchmark against the short-term market. Demand for shipping services has been robust throughout the year, especially into Europe, but the growth rate cannot sustain indefinitely at double-digit levels.

As demand begins to ease from its very high level, the competition for capacity also subsides, resulting in better deals for freight forwarders negotiating long-term contracts with carriers. Meanwhile, transpacific trade is showing a slight downward momentum, with spot rates from the Far East to the US West Coast falling by USD 2 on October 7th. Although this is a marginal move, it marks the first dip in rates since mid-September.