The Freightos Baltic Global index fell 23% to $1,492/FEU in March back to a level last seen in May 2020, as rates declined across all the major tradelanes this month. This rate is 94% lower than a year ago, and just 15% higher than 2019 levels.

Transpacific rates to both coasts continued to fall in March as capacity continued to outstrip demand.

Asia - US West Coast rates fell 7% to $1,016/FEU. This price is the lowest rate recorded for this lane since the FBX launched in 2016, is 94% lower than last year, and is 21% below the price in March 2019. Rates to the East Coast fell 12% to $2,123/FEU, 88% lower than a year ago and 14% lower than in 2019. 

Asia - US West Coast rates fell 7% to $1,016/FEU. This price is the lowest rate recorded for this lane since the FBX launched in 2016, is 94% lower than last year, and is 21% below the price in March 2019. Rates to the East Coast fell 12% to $2,123/FEU, 88% lower than a year ago and 14% lower than in 2019. 

Rates from Asia to N. Europe fell sharply, decreasing 49% since February to $1,335/FEU on falling demand despite increases in capacity reductions. This price is 89% lower than last year, and now about on par – just 4% higher – than 2019 levels, after remaining elevated relative to pre-pandemic levels in the first two months of this year. 

Transatlantic rates decreased 19% to $3,893/FEU and are now 50% lower than a year ago. Prices have fallen steadily since September as demand has eased and carriers have added capacity, but still remain 133% higher than in 2019 as demand remains well above 2019 levels. 

Though carriers continue to blank sailings and suspend services, falling rates suggest container lines are keeping some excess capacity active and competing on price despite the lull in demand – for now. Optimism and projections for a rebound in demand starting in Q2 may be challenged by recent reports of persistent inventory surpluses in both the US and Europe. If the recovery does not materialize, carriers may opt for broader capacity management measures to push rates up to profitable levels.  

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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