US-Asia Rates Hit $11,259 as Europe Trade Drops to $2,425
The gap between transpacific and Asia-Europe spot rates has widened to a record high, with US East Coast rates approaching pandemic peaks.
Key points
- US East Coast spot rates reached $11,259 per FEU on September 17, just 11.2% below the 2022 peak.
- Asia-North Europe rates fell to $2,425 per TEU as more capacity returned to the Red Sea route.
- The gap between transpacific and Asia-Europe rates is now the widest ever recorded by a significant margin.
Transpacific rates hit $11,259 per FEU while Asia-Europe fell to $2,425 per TEU. This divergence creates the largest spread between the two major trades in history.
The US East Coast market is now just 11.2% below its all-time high. Carriers are raising prices despite a 6-7% increase in offered capacity during September.
Record gap splits global freight markets
Clarksons Research confirms that geographic divergence is at its widest level ever. Xeneta data shows a difference of over $7,100 per FEU between the two routes.
Asia to North Europe rates dropped 5% last week to $2,425. In contrast, transpacific rates continue climbing due to resilient cargo demand in the US.
Red Sea routing restores European capacity
More ships are returning to the Red Sea route for Europe. This move restores capacity and removes the cost inflation caused by Cape of Good Hope diversions.
This structural shift helps push freight rates lower in the Asia-Europe trade. Meanwhile, other sectors of shipping still benefit from ongoing Middle East disruptions.
Carrier discipline drives US price hikes
Xeneta analyst Peter Sand notes carriers are seizing the moment while demand is strong. He expects another rate increase around the start of October and China’s Golden Week.
The intra-Asia trade also reports record high earnings this week. Drewry’s index rose 6% to $1,402 per FEU, marking a fourth consecutive weekly record high.
