The cost of container transportation from Asia to the United States has increased
With the arrival of 2025, early loading by shippers before the Lunar New Year can help increase container rates on trans Pacific routes to the United States.
In a weekly update to analyst Freightos, research director Judah Levine wrote, "Supported by demand before the Lunar New Year, trans Pacific container freight rates have seen a significant increase at the beginning of the year due to GRI (overall freight rate increase)
The Freightos Baltic Index found that as of the week ending January 3, prices from Asia to the West Coast of the United States rose by 23% to $5929 per 40 feet per week.
The freight rate from Asia to the East Coast of the United States has increased by 13% to $6934 per FEU.
Levin pointed out that the analysis of trans Pacific interest rates is not related to the labor situation on the East Coast of the United States. The update from Freightos was released before the International Longshore Association and the American Maritime Union announced on Wednesday that they had reached a provisional contract agreement. The agreement covers 25000 dockworkers engaged in container operations at 14 ports and maritime centers along the East Coast and Gulf Coast of Mexico.
Levine wrote, "The housing prices on the West Coast are already 20% higher than last year's peak during the Lunar New Year, while those on the East Coast are 3% higher." "Before the expected tariff increase, some early loading volumes may have been stronger than usual. Although some airlines are considering increasing GRI in the middle of the month, people doubt whether attempting to increase GRI again near the holiday period will be successful
The Asian factory has been closed for several weeks due to the Lunar New Year celebration that began on January 29th.
Levine wrote that after a significant increase in November and early December, container freight rates from Asia to Europe and the Mediterranean experienced a moderate rise due to longer delivery times for the Red Sea diversion and earlier than usual demand for the Lunar New Year.
The price for Asia Northern Europe increased by 8% to $5558 per FEU, while the price for Asia Mediterranean increased by 3% to $5630 per FEU.
The peak before the holiday and some severe weather conditions have exacerbated traffic congestion and equipment shortages in China - flights in Shanghai, Qingdao, and Ningbo have been delayed for up to four days - and the Philippines and Vietnam are no exception.
Labor shortages and strikes in certain regions have also led to congestion and delays in European hubs such as Hamburg and Rotterdam, as well as ports in Spain and Italy. These factors may put additional upward pressure on interest rates before the Lunar New Year
The planned multi day strike is expected to have different impacts on port, railway, and airport services.
Levine predicts that interest rates in Asia will slow down as seasonal demand decreases at the end of February and March.
For Asia Europe trade, prices may fall back to the Red Sea adjusted lower limit of $3000 to $4000/FEU reached in March and October last year, but continued pre loading of trans Pacific routes before expected tariffs may prevent a significant drop in rates, "he pointed out.