Into the US West Coast, spot rates increased by 2 per cent to stand at $8,045 per FEU.

This implies spot rates are up by almost 150 per cent on these trades since the end of April. The latest hikes are far smaller compared to July 1, when rates rose by 22 per cent into the US East Coast and 12 per cent into the US West Coast, the Norway-based ocean and air freight rate benchmarking and market analytics platform said in a note.

“This suggests a growing level of available capacity in the market and shippers can once again start to play carriers off against each other, instead of feeling they need to pay whatever price they are offered to secure space. As the balance of negotiating power starts to swing back towards shippers, we should see spot rates start to come back down,” Emily Stausboll, Xeneta senior shipping analyst, said.

On the trades from the Far East into the United States, the market mid-high (and high) spot rates have remained almost flat during July, indicating the high end of the market is no longer spiralling.

“A flat market mid-high means a growing number of shippers and freight forwarders no longer feel they need to pay spot rates at the upper end of the market to ensure their containers are transported. This is the first crack in the dam because it means carriers are no longer dictating which containers to load, but rather having to lower rates to secure volumes,” she said.

"If these carriers want to compete and retain market share, then they need to lower their own prices,” she noted.

The market is also reaching a peak on front-haul trades from the Far East to North Europe and Mediterranean where average spot rates increased by 4.7 per cent and 3.5 per cent on July 15 to stand at $8,480 per FEU and $8,150 per FEU respectively. This is less than the increases of 17 per cent and 10 per cent on July 1.

“Signs of the spot market reaching a peak will be welcomed by shippers, but it does not mean an end to their troubles. Port congestion is easing, more ocean container shipping capacity is becoming available, and it looks likely the frontloading of imports seen earlier this year will mean a slacker traditional Q3 peak season then there would have otherwise been,” Stausboll said.

“However, spot rates remain up by just under 400 per cent from the Far East into the US West Coast since mid-December last year, by more than 300 per cent into the US East Coast and 455 per cent into North Europe. Perhaps the market has reached a peak, but shippers are still paying hugely elevated costs,” she noted.

The basic cause of the market spike this year is the conflict in the Red Sea, she said, adding that unless there is a large-scale return of container ships to the Suez Canal—which seems unlikely at present—then the situation cannot be fully resolved.

Fibre2Fashion News Desk (DS)