Asia‑US Container Rates Ease as Market Sees Increased Capacity and Lower Demand

Shipping container rates from Asia to the US have mostly softened this week as available capacity increased across major trade lanes, while demand remains relatively weak, according to Xeneta and Freight Right logistics data. Analysts note that market sentiment is influencing rate spreads between the US West Coast (USWC) and East Coast (USEC), with the West Coast slightly more resilient due to recent US-China tariff reductions and the suspension of port fees earlier in November.

Container volumes from Shanghai, tracked by the SCFI index, fell for the second consecutive week following a four-week rise, while the gap between advertised and special rates offered to freight forwarders is narrowing. Drewry also reported that carriers’ general rate increases (GRIs) had limited success in sustaining higher prices, and they expect rates to soften or hold steady in the near term.

The easing in container rates has implications for the chemical industry, where polymers such as polyethylene and polypropylene, as well as titanium dioxide, are shipped in containers, alongside liquid chemicals in isotanks. Chemical tanker rates from the US remain largely stable, with soft demand on most trade lanes. Some activity was noted for cargoes to Montreal ahead of the ice season, while US Gulf (USG) to ARA, Asia, Brazil, and India routes continue to experience mixed demand, with base oils, lube oils, glycols, and ethanol seeing moderate movements.
Bunker prices remain stable despite week-to-week volatility in energy markets, providing some predictability for shipping costs. Overall, the current market reflects a seasonal lull in US imports, geopolitical adjustments, and ample vessel availability, which are keeping spot rates in check.