Xeneta: Freight rates set to climb in early October

Recent data from Xeneta indicates that container freight rates for routes originating in the Far East and destined for both the US East and West Coasts have risen significantly since July. According to a report in Hellenic Shipping News, spot rates to the US West Coast increased by over 18 percent, while costs to the East Coast jumped by nearly 31 percent. As of late September, shipping a 40ft container to the US East Coast reached an average cost of $11,445.

The market reflects a sharp divergence between American and European trade lanes. While US-bound rates climbed, short-term pricing for goods moving into North Europe and the Mediterranean fell by 29 percent and 38 percent, respectively, over the same period. Xeneta Chief Analyst Peter Sand noted that the current peak in US spot rates might begin to subside in early October, while the downward trend for European routes could experience a temporary pause.

Shippers currently preparing for 2027 contract negotiations face a difficult environment due to several simultaneous operational disruptions. Although long-term contract rates remain lower than the elevated spot market, the cumulative impact of these challenges has strained global shipping networks. Sand suggested that companies must evaluate individual market pressures against their specific logistics needs to manage both the financial and operational risks of the current market volatility.