Spot freight rates from Asia to Europe and US reach pre-pandemic levels

According to Freightos, average spot freight rates for 40 foot container on Asia – Europe decreased to $1,500/FEU, which suggests a weekly decrease of 15% and a 40% decrease since late February. Along with this recent slump gaining speed, the recent freight rates are back to March 2019 levels, erasing all of the enormous gains driven by the pandemic era.

“This significant come-down suggests Asia - Europe ocean trade has entered price war territory as demand continues to slide and carriers are keeping some excess capacity active,” Freightos said.

Spot rates from Asia to US West Coast fell to slightly above the $1,000/FEU mark, indicating a decrease of 93% year-on-year and a decrease of 30% when compared to March 2019. Indeed, this recent level is lower than anywhere in 2019. Meanwhile, the rates to the East Coast were down to $2,344/FEU this week, marking a 87% decrease from last year and 15% lower than the levels recorded in March 2019.

Although rates from China to both West Europe and the US have returned to their 2019 levels, some rates still remain above the pre-pandemic norms. For instance, Asia - Mediterranean prices are at about $2,755/FEU, a 30% drop since February, but still 30% higher than in 2019.

The global index of Freightos currently stands at $1,573/ FEU, the lowest since May 2020; while the composite index of Drewry, another supply chain advisor, is at $1,806/FEU, remaining 27% higher than average 2019 (pre-pandemic) rates of $1,420.