Asia-US container rates mixed as extended peak season demand wanes; tanker rates stable

Container rates for shipping goods from East Asia and China to the US have been mixed this week, while rates for liquid chemical tankers leaving the US Gulf have remained largely stable. Container rates to the West Coast range between $7,475-8,300/FEU (40-foot equivalent unit), while rates to the East Coast range between $9,600-11,300/FEU, both near the highest levels since mid-2022.

Drewry, a supply chain advisor, reported container rates rose by 3% from Shanghai to Los Angeles but fell by 1% from Shanghai to New York. These rates are expected to remain stable amid management via blank sailings as capacity is expected to be stable. Xeneta, an ocean and freight rates and analytics firm, anticipates continued downward pressure on spot rates from the Far East to the US.

Container shipping firm Freightos reported a 2% decrease in rates to the West Coast and a flat rate to the East Coast. Analyst Judah Levine suggested the decrease in rates could signal the start of a downward trend as Golden Week has passed. The National Retail Foundation projected November arrivals to drop 11% month-on-month, suggesting peak season is coming to an end.

Despite continued demand from the US, container rates have remained relatively flat for the past month, with carriers removing capacity and blanking sailings due to the belief that these higher rates are not sustainable. Liquid chemical tankers have also been largely stable in rates, with US chemical tanker freight rates remaining unchanged despite downward pressure on several trade lanes.

Methanol and caustic soda are dominating demand along the USG-Asia trade lane, with a few large parcels being fixed. Overall, the market remains balanced, with most activity focused on methanol and other easy chemicals.