Asia-US container rates hold as carriers seek $3,000 November rate hikes

Trans-Pacific ocean container shipping rates remain significantly higher than pre-peak levels, with shipping companies requesting rate hikes of $2,000–$3,000 per FEU for November. Despite signs that the prolonged peak season may be ending, forwarders suggest the increases may not be permanent, as improved space availability and more consistent vessel schedules could mitigate the impact.

Analysts at Freightos (NASDAQ: CRGO) estimate Asia–U.S. East Coast rates at around $9,900/FEU, a 6% decrease from the previous week but still $200 higher than two weeks prior. West Coast rates have remained steady around $8,300/FEU since September. A potential strike at Los Angeles and Long Beach ports could disrupt operations, as negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union are ongoing through November 4.

Even though the affected facilities handle a significant portion of cargo in these ports, carriers believe that picket lines from other ILWU members may not disrupt vessel, yard, and gate operations. Meanwhile, container rates to Europe have been on the rise since the beginning of the month, with a 10% increase in Northern Europe and 23% growth in Mediterranean routes.

The price surge is driven by port congestion and cargo backlogs, as well as the uncertainty surrounding demand. The shipping industry is also witnessing a shift towards the shorter Suez Canal-Red Sea route, with Premier Alliance adding new services in November. However, carriers are anticipating further rate increases for Asia–Europe lanes at the start of November, but the outcome remains uncertain due to discounts already offered for early-November bookings.