Rates for shipping containers from east Asia and China to the US edged lower this week on low volume even as carriers increased the number of blank sailings.

Supply chain advisors Drewry said spot rates from Shanghai to major US destinations declined slightly due to low cargo volume, as shown in the following chart.

Drewry said that in response to the weak demand ahead of factory closures associated with the Lunar New Year holiday, carriers managed capacity by announcing 57 blank sailings over the next two weeks on the transpacific East and West Coasts trade lanes, much higher than in previous years.
Hence, they expect spot rates on this trade to decline slightly in the coming weeks.

Rates from ocean and freight rates analytics firm Xeneta also fell slightly.
“Offered capacity on the transpacific trade from Asia to US West Coast increased 6.9% in the last week against a backdrop of subdued demand, yet average spot rates remained almost flat,” Peter Sand, Xeneta chief analyst, said.
“The full story is found by comparing rates being paid by shippers at different levels of the market,” Sand said. “Xeneta data shows the mid-low market segment – generally occupied by the larger volume shippers – has fallen 18.3% in the last month, while the market average has fallen a lesser -11.5%.”

Sand said that with the market mid-low acting as a bellwether and seemingly impacted more immediately by the increasing capacity on the transpacific, those shippers paying the market average should expect further softening in rates in the coming weeks.
Rates from online freight shipping marketplace and platform provider Freightos showed the largest decrease on the week and now has containers to the West Coast at around $1,900/FEU (40-foot equivalent units).

Judah Levine, head of research at Freightos, said Asia-US West Coast rates slipped more than 20% last week and are all the way back to early December levels, suggesting that prices are already entering the post-Lunar New Year, pre-peak season lull.
Levine cited data from the National Retail Federation (NRF) projecting March volumes will dip 5% month-on-month, with Q1 demand expected to be down 7% year on year as retailers exercise caution and as totals are compared to volumes frontloaded in Q1 last year.

Rates from global logistics company Freight Right on its TrueFreight Index (TFX) were steady this week.
Robert Khachatryan, founder and CEO of Freight Right Logistics, said the ocean freight market has effectively cooled as China enters its final working week before the Lunar New Year holiday shutdown.
“Rates have stabilized at the lower levels established in previous weeks, with no significant movement recorded week-to-week as the shipping window for pre-holiday departures has officially closed,” Khachatryan said.

Spot rates on the Shanghai Containerized Freight Index (SCFI), which tracks rates for containers leaving Shanghai, fell this week for the sixth week in a row.
Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers.

They also transport liquid chemicals in isotanks.

PANAMA PORTS BATTLE CONTINUES
Hong Kong-listed CK Hutchison (CKHH) said it will continue to explore all options after Panama’s supreme court annulled the contract that allowed the company to operate ports on either side of the Panama Canal.

CKHH said it will continue to consult with its legal counsel regarding all available recourse including additional national and international legal proceedings against the Republic of Panama and its agents and third parties.

CKHH also warned global shipping major Maersk and its terminal operation subsidiary APM Terminals against taking over operations of the terminals without an agreement with the company.

The legal battle could halt the proposed sale of the ports to a consortium led by private equity firm BlackRock for $22.8 billion.
The sale was likely a reaction to US President Donald Trump’s statements that the US should reclaim the Panama Canal because of China’s influence and control over the vital waterway.

The US is the largest user of the canal.
In 2024, 52% of transits through the canal had ports of origin or destinations in the US. More than 76% of the cargo that transited the canal had the US as its origin or destination.
The Panama Canal remains the primary route for trade between Asia and the US Gulf and East Coast.

LIQUID TANKER RATES MIXED
US chemical tanker freight rates assessed by ICIS were mixed this week, with changes on most routes.
On the US Gulf to Rotterdam trade lane, there was an uptick in cargo inquiries, which is lending hope to most vessel owners of completing cargoes, lending to some upward pressure on freight rates now.

Rates for larger parcels edged slightly lower.

Dense fog throughout the entire US Gulf has caused significant delays for owners that are trying to maintain their laycans and avoid voyage cancellations. Should this weather continue for a few more weeks, rates should push higher.
For the USG to Asia trade lane, rates were mixed ahead of the upcoming lunar New Year holiday. Overall rates remain stable/firm on steady demand and tight tonnage list. There were several large parcels of EDC and MEG seen fixed, otherwise it was a relatively quiet week with few inquiries seen in the market.

For the USG to India, several ethanol and MEG inquiries were seen amid a very tight market, which saw the rates firm upward. In addition, several smaller parcels of lubes and various chemical parcels were seeking space for loadings in the first half of March.
From the USG to Brazil, the market rose slightly this week as the continued lack of space is putting upward pressure on the rates. Contract of affreightment (COA) nominations are steady to higher. Ethanol continues to be the cargo that seems to be dominating this trade lane. There were several inquiries on caustic soda, but no reported fixtures were seen in the market.
On the other hand, bunker prices were higher this week following the steady energy prices.

Source: By Adam Yanelli, Additional reporting by Kevin Callahan, ICIS