Transpacific box rates lose steam as carriers undercut for cargo
- Transpacific spot rates have fallen below $5,000 per feu as carriers compete for cargo amid rapidly growing capacity
- Opportunistic lines re-entering the China-US routes are escalating competition by offering rates as low as $4,000 per feu
- Shanghai Containerized Freight Index remains high, but actual market prices are under pressure
- Further rate volatility is expected, with demand hinging on the outcome of US-China trade negotiations
Transpacific spot freight rates have retreated from recent highs as an influx of capacity — including aggressive rate-cutting by returning and smaller carriers — pushes prices below $5,000 per feu, with competition intensifying amid signs of faltering cargo demand
