Recently, the global shipping market has shown a polarized trend.

Pacific routes have “plunged,” while European routes have “soared,”

presenting a stark contrast of “heaven and hell.”

This week, Drewry's Weekly World Container Index (WCI) shows freight rates on the Shanghai-Los Angeles route plunged by 12% to $2,328 per 40-foot container, while rates on the Shanghai-New York route dropped by 15% to $3,254 per 40-foot container.

This trend aligns with last week's movements in the Shanghai Containerized Freight Index (SCFI).

SCFI data for U.S. routes has also weakened further. Speculation suggests that if the SCFI continues to serve as a leading indicator for the WCI, shipping companies may face even tougher conditions ahead.Today, the SCFI reading for Shanghai to major ports on the U.S. West Coast fell a further 18% week-on-week to $1,823 per 40-foot container. The SCFI reading for Shanghai to major ports on the U.S. East Coast declined 9% week-on-week to $2,600 per 40-foot container.

The freight forwarder reported that rates from China to the U.S. West Coast “are hovering between $1,700 and $1,750 per 40-foot container,” while rates to the U.S. East Coast “have fallen to around $2,500 to $2,700 per 40-foot container.”

He added: “If booking volumes remain sluggish, rates for both the U.S. West Coast and East Coast will approach September levels, with a possible temporary attempt to impose General Rate Increases (GRIs) in December. However, without a significant rebound in cargo volumes, such price hikes may prove difficult to implement.”

Industry sources indicate several carriers have announced transpacific GRIs effective December 1, ranging from $1,000 to $3,000 per 40-foot container depending on the shipping line.

Meanwhile, transatlantic routes also show signs of weakness, with spot rates on the WCI route falling to $1,633 per 40-foot container—a roughly 25% decline from historical highs and the lowest level in the second half of the year.

In stark contrast, spot rates on the Europe-Asia route continued to strengthen, buoyed by a series of new Freight All Kinds (FAK) rate increases across various cargo types.

This week, the WCI rate from Shanghai to Rotterdam rose 3% week-on-week to $2,038 per 40-foot container, marking the first time it has surpassed the $2,000 threshold since early September.

The WCI Shanghai to Genoa rate climbed 4% week-on-week to $2,193/40ft.

Drewry analysis indicates: “Carriers are aggressively pushing spot rates higher ahead of the annual contract negotiation season to secure leverage for next year's bargaining.”

The global shipping market currently exhibits a “West Cold, East Hot” pattern: Pacific and Atlantic routes are entering a downturn due to divergent consumer demand, inventory cycles, and geopolitical factors in Europe and the US, while Asia-Europe routes are bucking the trend with strength supported by capacity control and seasonal shipments. This divergence is likely to persist for the foreseeable future.

Source: Weiyun Network