Ocean Container Freight Rates Begin to Decline

Container vessel (Photo: Myklebusthaug / Phaata)

Average spot rates across all trades posted a slight week-on-week decline, with reductions ranging from -4.6% to -6.6%. This trend follows the previous week's more significant, widespread downturn.

September was a volatile and disruptive month for the short-term freight market from the Far East to the US. There was a significant jump in spot rates on September 1 and some instability throughout the month, but by September 30, the earlier spike had been completely erased.

As of October 2, rates from the Far East to the US East and West Coasts had both fallen by 8% compared to the end of August.

The situation was less dramatic on the Far East to Europe trades, where short-term rates consistently fell throughout September.

Ten days ago, the short-term rate to North Europe from the Far East broke through the "summer bubble" that had formed in June and peaked in the first half of July. Currently, the rate stands at $1,703 per FEU, compared to $1,912 per FEU at the end of May.

On the route from North Europe to the US East Coast, spot rates have been less volatile – down 5.5% from a week ago, 5.8% from two weeks ago, and 10.2% from the end of August. Notably, the rate on this trade is now at a 21-month low and its lowest point since the end of 2023.

Market Highlights

Average Market Spot Rates – October 2, 2025:

Far East to US West Coast: $1,681/FEU (40ft container)

Far East to US East Coast: $2,638/FEU

Far East to North Europe: $1,703/FEU

Far East to Mediterranean: $2,220/FEU

North Europe to US East Coast: $1,648/FEU

Analysis from Xeneta's Expert

Commenting on the Transpacific and Far East-Europe trades, Peter Sand, Xeneta's Chief Analyst, stated: “Average spot rates on the Transpacific trade are now below the levels at the end of August, with the unexpected spike at the beginning of September more than wiped out.”

“The September spot rate spike should act as a reminder that markets are still volatile. Freight rates will continue a steady decline for the rest of 2025, but there is always the potential for drama on the way.”

“China has passed legislation allowing them to take countermeasures against any nation it believes is acting against its national trade interests. The lights are still flashing red on the geo-political dashboard so it would be foolish for shippers to believe there is not potential for more pain as we look ahead to 2026.”

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Source: Phaata.com (According to India Shipping News)

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