Freightos Baltic: Ocean freight rates extended decline, transpacific routes remain elevated

Global ocean freight rates continued to slide amid the post-Lunar New Year lull, though the extent of declines varied across major ex-Asia trade lanes.

According to Freightos data, Asia-Europe rates have fallen nearly 45% since early January, now hovering around $3,000/FEU—the lowest level since the onset of the Red Sea crisis. Rates to the Mediterranean are approaching $4,000/FEU. In response, carriers have intensified blank sailings and announced general rate increases (GRIs) of approximately $1,000 per FEU, effective 01 March. However, scepticism remains over the sustainability of these hikes, given weak demand fundamentals.

Conversely, transpacific rates remain elevated despite the traditionally slow season. Spot rates to the US West Coast stand at approximately $5,000/FEU, while East Coast rates are near $6,000/FEU. Persistent concerns over potential US tariff increases have fuelled a surge in font-loading orders, particularly from Mexico, which faces the prospect of a 25% tariff hike on all exports by mid-March.

While the US government maintains an assertive trade stance, the implementation of newly announced reciprocal tariffs remains pending. Instead, the executive branch has launched an investigation into the tariff structures of its trading partners—a process expected to extend until 01 April 2025.

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