The latest Xeneta data shows average spot rates from the Far East to US East Coast stood at $10,078 per 40 ft equivalent shipping container (FEU) on July 17. Into the US West Coast, average spot rates stood at $7,917 per FEU.

This leaves average spot rates on these major fronthaul trades up more than 140 per cent since the end of April when the latest market spike began.

There has also been a spike on fronthaul trades from the Far East into North Europe and Mediterranean, where average spot rates have increased by 163 per cent and 95 per cent respectively since April 30 to stand at $8,499 per FEU and $8,127 per FEU.

Data reveals some carriers attempted to push for higher spot rates in the mid-July general rate increases (GRI) while others offered lower rates for the first time in months, Xeneta said in a release.

The fundamental cause of the market spikes this year is the conflict in the Red Sea. Unless there is a large-scale return of container ships to the Suez Canal—which seems unlikely at present—the situation cannot be fully resolved, the company noted.

It is likely that ocean freight markets will soften as they did during March and April, but shippers should move forward with caution.

There is now a very real prospect of union strike action at ports on the US East and Gulf Coasts, while a Trump presidency could see businesses rush to frontload imports ahead of increasing tariffs on imports from China and elsewhere.

Port congestion, one of the key reasons behind the current market spike, is easing and the delivery of more new ships will increase capacity further in the remainder of the year.

However, global shipping networks are still under immense strain and it will not take much to push the needle back into the red and rates heading skywards, it said.

While shippers should be prepared for a difficult second half this year, the latest market movements should offer some hope over increasing available capacity, Xeneta added.

Fibre2Fashion News Desk (DS)