The Freightos Baltic Global index increased 4% month-on-month in July – driven by increases on the transpacific – for its first monthly gain since April to $1,323/FEU. This rate is just below 2019 levels and 78% lower than a year ago.

Rates to the East Coast increased 18% to $2,598/FEU, still 13% lower than in 2019. Low water levels in the Panama Canal remain an issue for East Coast shipments and restrictions will tighten somewhat in August. 

Transpacific spot rates climbed significantly in the second half of July, with Asia - North America West Coast rates increasing 28% compared to the end of June to $1,527/FEU, and pulling even with July 2019 prices.  Rates to the East Coast increased 18% to $2,598/FEU, still 13% lower than in 2019. Low water levels in the Panama Canal remain an issue for East Coast shipments and restrictions will tighten somewhat in August.

Volumes likely increased moderately compared to June at the start of peak season. However, the bigger drivers for rate behavior were stricter capacity management by carriers contending with demand well below that of the last two years, fleets oversupplied with long term charters, and new order vessels that have started to enter the market and will continue to do so in the coming months. 

Some projections – though not all observers – expect incremental demand increases into August and elevated volumes through October. But these volume gains may still only be expressed in rate increases through significant capacity management by carriers.

Some projections – though not all observers – expect incremental demand increases into August and elevated volumes through October. But these volume gains may still only be expressed in rate increases through significant capacity management by carriers.

Asia - Northern Europe rates were largely flat in July, dipping 3% to $1,264/FEU, a level 87% lower than a year ago and 5% below 2019 levels. Despite the introduction of newer ultra large vessels into the market, carriers were able to keep rates level even as demand continues to lag and less optimism exists for peak season volume gains on this lane.

Asia - Mediterranean prices fell 9% this month, continuing their sharper slide that began in mid-June as carriers have added capacity to this lane in response to resilient volumes. Rates ended in July at $1,992/FEU, 83% lower than last year but still 33% higher than in 2019.

 Rates on the transatlantic also continued their decline, falling 19% in July to $1,688/FEU, a price 80% lower than last year and below 2019 levels for the first time since early in the pandemic. 

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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