The FBX Global index fell 17% to $2,164/FEU in December, its lowest level since September 2020, as demand continued to slow and congestion eased. This rate is 77% lower than a year ago, but 48% higher than in 2019 as Transatlantic prices, and, to a lesser degree, Asia - Europe rates remain above pre-pandemic levels.

Asia - US West Coast rates were about level this month as falling volumes combined with reductions in capacity to see rates stabilize at about 2019 levels since the end of November.  This lane closed the year at $1,390/FEU, 90% lower than a year ago and 1% higher than in 2019.

Asia - US West Coast rates were about level this month as falling volumes combined with reductions in capacity to see rates stabilize at about 2019 levels since the end of November.  This lane closed the year at $1,390/FEU, 90% lower than a year ago and 1% higher than in 2019.

Transpacific rates to the East Coast continued to fall sharply, decreasing 25% since last month as demand continued its decline and congestion levels improved. The current  $2,895/FEU rate is 83% lower than last December and although it is still 12% higher than in 2019, it is approaching pre-pandemic levels.  

Asia - Europe rates continued to tumble this month on decreases in demand, with prices dipping 35% to $2,636/FEU, 82% lower than last year. Blank sailings, congestion and some labour disruptions may be factors keeping rates about 30% higher than in 2019 but compared to the previous month, when rates were nearly triple the norm, this trend is also a significant step towards normalization.

Transatlantic rates decreased 12% to $5,770/FEU and are 19% lower than a year ago as congestion has eased on both sides of the Atlantic and carriers add capacity to this still-lucrative lane where prices are still more than triple their 2019 level. 

Carriers are planning significant increases in ex-Asia blank sailings in the months following Lunar New Year, suggesting a return to seasonality and a sustained unwinding of the surge that kept rates extremely high for much of the past two years.  As inventories run down – and if major recessions are avoided and inflation brought under control – the industry could return to more typical demand and rate patterns later in Q2 or into peak season 2023.

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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