The Freightos Baltic Global index climbed month on month for the first time this year, increasing 6% since the end of March to $1,576/FEU. Significant spikes on the transpacific offset by decreases on the Asia - Mediterranean and transatlantic lanes resulted in the moderate global gain, which closed the month 82% lower than a year ago but still 18% higher than in 2019. 

Transpacific rates to the West Coast spiked 67% to $1,697/FEU on mid-month rate increases pushed by carriers. This price is still nearly 90% lower than a year ago but 11% higher than 2019 levels. Rates to the East Coast climbed a more moderate 19% to $2,516/FEU, 85% lower than a year ago and still 6% lower than in 2019. 

The mid-month rate climb held to the end of April, with carriers announcing plans for GRIs in May. Although transpacific volumes did show signs of a rebound in March – and some projections have them climbing into peak season – the success of the rate increases so far are likely more due to stricter capacity management measures than to demand shifts. 

Although transpacific volumes did show signs of a rebound in March – and some projections have them climbing into peak season – the success of the rate increases so far are likely more due to stricter capacity management measures than to demand shifts

With transpacific rates reaching extreme lows in March, carriers may be acting not only to restore rates to a profitable level in the short term, but also to indicate to shippers the effective market rate they expect this year – either through still-hoped for demand increases or capacity reductions – as May approaches and many long-term contracts are still not finalised.

Rates from Asia to N. Europe ticked up slightly after their sharp decline in March, increasing 5% to $1,399/FEU as capacity reductions have now likely met the lower volume levels. This price is 87% lower than last year, and 5% higher than 2019 levels. Reports of high utilisation levels may support expectations for May GRIs on this lane as well, despite no significant indications that demand is increasing.

Transatlantic rates decreased 21% to $3,081/FEU and are 56% lower than last year as demand continues to ease and additional capacity has been shifted to this lane, although prices are still 50% higher than in 2019. Asia - Mediterranean rates fell 14% to $2,485/FEU – an 80% drop compared to a year ago – but have still not slid as dramatically as Asia - Europe prices. They remain 67% higher than in 2019.   

About Judah Levine, Research Lead, Freightos

Judah is an experienced market research manager, using data-driven analytics to deliver market-based insights. Judah produces the Freightos Group's FBX Weekly Freight Update and other research on what's happening in the industry from shipper behaviors to the latest in logistics technology and digitization.


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