International Maritime

Carriers extend trans-Pacific spot rates in bid to avoid further declines

By Bill Mongelluzzo

Asia – USWC rates fell more than 10 % in the first half of January but remained slightly higher than in January 2023 . Shutterstock . com

Most ocean carriers on the eastbound trans-Pacific are extending their current spot rates through the end of January , a sign that liners are losing pricing power even before the trade enters its weakest month of the year .

Three of those carriers — including Hapag-Lloyd — are even taking the uncommon step of offering customers guaranteed rates into mid-February , forwarders told the Journal of Commerce .

Those pricing moves mean the carriers ’ general rate increase ( GRI ) planned for Jan . 15 will not be implemented , forwarders said , because demand — while strong enough to support the current rate level — is not sufficient to support another boost .

“ We ’ re not only getting two-week [ guaranteed ] rates , we ’ re [ also ] getting 30-day rates to Feb . 15 ,” said Christian Sur , executive vice president of ocean freight contract logistics at forwarder Unique Logistics International .

“ We ’ re not only getting two-week rates , we ’ re getting 30-day rates .”

The fact that Hapag-Lloyd and two smaller lines , which sources identified as Wan Hai and SM Lines , have extended their rates for a full month to mid-February is especially significant because carriers normally guarantee rates for only two weeks . The 30-day guaranteed rates suggest carriers expect capacity to outpace demand even more in the coming month , further eroding pricing power .

‘ Coming down fast ’

The weakening market must deal with the fact that many factories in Asia will soon close for a week or two for the annual Lunar New Year holiday that begins Jan . 29 . By guaranteeing spot rates through the end of the month , carriers are attempting to build “ roll pools ” of containers at Asian load ports to carry them into February , said James Caradonna , executive vice president at forwarder M + R Spedag Group .

“ Space is still OK , but some carriers are not as full as others ,” Caradonna said , adding that some carriers are willing to provide customers the space they want even if they exceed the minimum quantity commitment ( MQC ) in their contracts .

Carriers confirm that with the Lunar New Year holidays approaching , further rate hikes are unlikely .

“ Rates are coming down pretty fast to the West Coast ,” a carrier executive who asked not to be identified told the Journal of Commerce .

A second carrier source acknowledged , “ It seems like rates have crested and are drifting lower .”

Spot rates from North Asia to the West Coast slipped to $ 4,700 per FEU as of Jan . 13 , down 10 % week over week ,

Trans-Pacific spot rates sliding after December spike

Container spot rates from North Asia to US West and East coasts , in USD per FEU

USD per FEU

$ 10,000

$ 8,000

$ $ 10,000 6,000

$ 4,000

$ 2,000 $ 554

$ 0

L Jul Feb , 2022 Jan 2024 Jul Jan 2025

North Asia to US East Coast North Asia to US West Coast

L Source : Platts , S & P Global

© 2025 S & P Global

24 Journal of Commerce | February 3 , 2025 www . joc . com