Xeneta data highlights:
- Far East to North Europe average spot rates up 4% compared to one week ago. Declined slightly since increase of 9% on 1 March.
- Carriers have reduced capacity on trade from Far East to North Europe, down from 318 100 TEU in the full week commencing 20 January to 215 500 TEU in the full week commencing 24 February.
- Average spot rates from Far East to US continue to decline, down 33% and 35% into the US East Coast and US West Coast respectively compared to one month ago.
Average spot rates on 7 March 2025:
- North Europe to US East Coast - USD 2 200 per FEU (40ft equivalent container)
- Far East to US East Coast - USD 4 210 per FEU
- Far East to US West Coast - USD 3 160 per FEU
- Far East to North Europe - USD 2820 per FEU
- Far East to Mediterranean - 3935 per FEU
Xeneta analyst insight - Far East to North Europe
Peter Sand, Xeneta Chief Analyst:
“The story behind the slight uptick in average spot rates from Far East to North Europe at the start of March is capacity management. It is the only major fronthaul where carriers have slashed capacity, while we have also seen blanked sailings reach the highest level since March last year.
“From Xeneta data we can see carriers have managed to successfully arrest the decline on this trade and actually lift spot rates.
“We can also connect this to MSC reshuffling some of their fleet and taking ultra large ships out of North Europe and moving them into the Mediterranean. This seems to find a better balance between a lower level of supply and demand.”
Xeneta analyst insight - Far East to US East Coast and US West Coast:
Peter Sand, Xeneta Chief Analyst:
“Shippers cannot act on what they do not know, so many will feel paralyzed by the market uncertainty. Unlike the trade from the Far East to North Europe, average spot rates into the US continue to decline and shippers will be looking at this with great interest. It may signal a weaker market than many people thought at the start of the year when average spot rates increased fairly dramatically.
“This is very significant considering US shippers are going into tendering right now and will have been holding discussions during the TPM event at Long Beach on where long-term rates will be when they sign their contracts in a few weeks.”
Other market developments:
CK Hutchison Holdings agrees in principal to sell 80% controlling stake of Hutchison Ports group to consortium led by American investment company BlackRock, which includes MSC’s Terminal Investment Ltd. The deal includes 90% share in Panama Ports Group.
Peter Sand, Xeneta Chief Analyst:
“Putting geo-politics to one side, the important part of this deal from a shipper perspective is that MSC will be running on the show. They were already the biggest carrier in terms of fleet but you could have argued they were not the strongest on terminals. Now they will become the world’s absolute number one in terms of business handled, so that’s pretty dramatic.
“The fact they are about to double their footprint in the terminals market may give them better access to more places in the world. When it comes to North America, Freeport could be a potential transshipment hub for them as could Cólon and Balboa in Panama.”
For more information or request additional insight or data from Xeneta analysts, please contact the press office at press@xeneta.com.
