Freightos: Weekly Ocean Freight Index Update

Ocean freight rates from Asia to major export destinations continued to climb this week as shipping lines adjusted capacity to manage the off-peak demand season. However, with the conclusion of the US presidential election, renewed volatility may be on the horizon, and the short-term outlook suggests rates could rise even further.

The Freightos Baltic Index, dated November 07, reported the following week-on-week changes in booking rates:

Key takeaways: 

The election of Donald Trump as President of the United States has already sparked early reactions in the global ocean freight market, driven by expectations of significant tariffs on imported goods. Trump’s campaign promises include imposing substantial tariffs—10-20% on the $3 trillion in annual US imports and a minimum of 60% on Chinese imports—which could alter ocean freight demand and pricing well before his January inauguration.

Early market indicators suggest a potential rise in freight demand as US importers accelerate shipments ahead of any prospective tariff increases. Although no immediate policy changes have been enacted, the mere anticipation of tariffs is already driving shifts in demand and rate adjustments.

Ocean freight rates remain elevated, and anticipated cost relief as the peak season winds down may prove elusive. Current high rates are influenced by several factors, including operational disruptions at key ports in Canada, Taiwan, Shanghai, and Ningbo, which have tightened equipment availability. Further pressures—such as Red Sea route diversions, increased blank sailings, and potential post-election rush orders—could exacerbate existing capacity constraints, leading to sustained or even rising shipping costs in the near term.

Read more on Freightos