Blanked sailings limit container capacity

Ocean spot rates out of Asia continued to fall this week. Carriers have responded to the decline by canceling significant amounts of scheduled sailings to the US and Europe to meet falling demand.

Asia – US West Coast rates fell 8% to less than $3,000/FEU this week, a 45% drop since the start of the month and the lane’s lowest level since August of 2020, though prices remain 128% higher than in September 2019.  

Rates from  Asia to the East Coast and to North Europe have each declined by about 25% this month but remain more than 150% and 400% higher than in 2019, respectively. The slower rate slides relative to Asia – US West Coast price decreases are likely due to ongoing port congestion on these lanes. 

European ports like Hamburg and Rotterdam continue to suffer delays, and there has likewise been a spike in US East Coast port congestion over the last few months driven by a significant shift of volumes from the West Coast which is at its lowest level since the 1980s. West Coast ports handled only 45% of US import containers in August.

LA/Long Beach’s share of searches as destination for China-US shipments on Freightos.com has fallen to its lowest level since early in the pandemic.

Importers shifted away from LA/Long Beach to avoid the congestion and delays they experienced during last year’s peak season, and also to escape labor disruptions which have been ongoing since July.  

Strikes in the UK are also affecting operations at the ports of Felixstowe and Liverpool, though not to the same extent as during the first Felixstowe strike in August.