‘Spot rates are moving closer to pre-Red Sea crisis levels’

Weekly ocean container shipping market update, as per Xeneta:

* Market average spot rates – 28 August 2025:

* Far East to US West Coast: USD 1,852 per FEU 

* Far East to US East Coast: USD 2,873 per FEU

* Far East to North Europe: USD 2,811 per FEU

* Far East to Mediterranean: USD 3,122 per FEU

* North Europe to US East Coast: USD 1,921 per FEU

* The steepest week-on-week decline is found on the trade from Far East to North Europe, down 3.6%.

* Far East to Mediterranean down a lesser 0.6% week-on-week.

* Far East fronthauls to the US West Coast and US East Coast also down less than 1% week-on-week, at -0.6% and -0.5% respectively.H Less drama on the Transatlantic trade from North Europe to US East Coast, which remains flat week-on-week.

* When comparing major fronthauls since the end of July, the steepest drop is found on Far East to US East Coast, down 21%. Into the US West Coast, average spot rates have fallen 13.3% in the same period.

* From Far East to North Europe and Mediterranean, average spot rates are down 16.4% and 14.5% since the end of July. Again, less drama on the Transatlantic trade, down just 3.5% in the same period.

* Further declines bring average spot rates closer to pre-Red Sea crisis levels (benchmarked at 1 December 2023). Spot rates are now up just 13% into the US West Coast, 16% into the US East Coast compared to pre-Red Sea.

* Spot rates have further to fall on Far East fronthauls to Europe. Spot rates are still up 86% to North Europe compared to pre-Red Sea crisis and 68% into the Mediterranean.

Comments Mr Peter Sand, Xeneta Chief Analyst: “Further gradual decline means spot rates are moving closer to pre-Red Sea crisis levels. The last time we saw rates this low prior to escalation in the Red Sea, carriers were posting big losses. Carriers may still make big bucks in 2025 overall, but this profit will have been made during the volatility earlier in the year, with Q4 returning to loss-making in isolation.

“Shippers have been battered by higher freight costs and tariffs during 2024 and 2025, with average spot rates from Far East to US East Coast almost touching USD 10,000 per FEU in July last year. Shippers will not feel too much sympathy for carriers now the situation is turning back in their favour.

“It is important shippers do not look back in anger at the higher freight rates they paid, they cannot recoup this money. Instead, they should be looking forward to the next tender season as an opportunity to strike a better freight rate as well as enhanced service delivery.”

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