Energy executives confident new West Coast pipeline gets built: survey

Trans-Pacific container rates from Asia to the U.S. West Coast experienced a slight decline on October 7, marking the first such decrease in weeks, according to Xeneta. Spot rates dropped by $2 per FEU, the first dip since mid-September. Analyst Peter Sand explained that while it is a minor move, it represents the first decline since the mid-September period.

Despite the modest decrease, West Coast rates remained 1.1% above their level on September 30, at $8,336 per FEU. In contrast, Asia-U.S. East Coast rates averaged $11,512 per FEU, up 0.5% over the week.

The trans-Atlantic trade saw North Europe-U.S. East Coast spot rates decline 1.1% to $2,854 per FEU over the same week. The Mediterranean region has seen the steepest decline since the post-Hormuz crisis peak in July, with market-average spot rates falling by 43% since July 1, compared to a 34% decline from the Far East to North Europe.

As of October 7, Asia-Mediterranean spot rates averaged $4,007 per FEU, down 5.9% from September 30. Far East-North Europe rates averaged $3,645 per FEU, down 2.5% over the same period. The gap between Europe-bound rates and North Europe has narrowed to approximately $400 per FEU, down from a $500 spread on October 1, 2025, and significantly lower than the $2,000 gap reached on January 1, 2026.

The widening disparity between the Mediterranean and North Europe rates suggests that volatility varies depending on the origin and destination of shipments. Analysts attribute the pricing relationship partly to carrier rerouting around the Suez Canal, which has lengthened journeys into the Mediterranean compared to routes to North Europe.

Despite the slight drop in rates, demand remains robust, particularly in Europe, though it cannot sustain double-digit growth indefinitely. As demand eases, competition for vessel capacity is decreasing, leading to better negotiating conditions for shippers.