Transpacific Rates Hit $11,259 as Carriers Boost Capacity

Spot freight rates to the US East Coast reached $11,259 per 40-foot unit. This figure stands just 11.2% below the all-time record of $12,683 set in January 2022.

Rates to the US West Coast hit $7,960, remaining 17.9% under the 2022 peak of $9,699. The Loadstar reports that these levels are approaching the highs seen during the pandemic disruption.

Rapid Rate Growth Since February

Xeneta analyst Peter Sand notes a 324% increase in West Coast rates since February 28. East Coast rates climbed 325% over the same period, driven by geopolitical tensions in the Middle East.

Bunker prices are pushing fuel surcharges higher, which could surpass pandemic-era peaks. Sand warns that breaking the historical record is a realistic possibility for the East Coast trade.

Carriers Add Capacity Ahead of Golden Week

Carriers increased offered capacity on the Far East to US East Coast trade by 6-7% in September. This surge aims to capture demand before a potential market turn within the next three weeks.

Shippers are moving cargo earlier to avoid the Golden Week holiday shutdown. Sand expects one final rate push in early October before growth slows or rates begin to soften.

Improved Vessel Utilization Discipline

Sea-Intelligence data shows Eastbound transpacific utilization is now 85-90%, up from 80-85% in 2018-19. This represents an eight percentage point gain over pre-pandemic levels.

Carriers are deploying capacity more efficiently to match shifting demand fluctuations. This disciplined approach is a key factor behind the currently elevated utilization rates.