Container Freight Rates Continue to Drop After Lunar New Year

As of February 18, container freight rates from Asia to Europe and the US continue to decline due to oversupply and concerns over slowing US consumer demand.

Decline in Container Freight Rates

Shanghai Shipping Exchange’s SCFI on February 14 reported a 10.9% drop in Asia-Europe rates to $1,668/TEU, a 7.3% drop to $2,828/TEU for the Mediterranean, a 9.9% decrease to $3,544/FEU for US West Coast, and a 12.7% drop to $4,825/FEU for the East Coast.

Oversupply and US Demand Concerns

Freight rates are falling as post-Lunar New Year demand remains weak while vessel supply increases.

The US January non-farm payrolls rose by 143,000, below expectations, raising fears of weaker consumer spending and lower import demand.

Uncertain Future Outlook

While US retailers have raised import forecasts for February-March, employment data signals challenges.

Monitoring freight rates and economic indicators remains essential.