Ocean carriers are deliberately reducing capacity on Asia-Europe routes to arrest falling spot rates, with Shanghai-Genoa dropping 8% week-on-week to $3,071/40ft and Shanghai-Rotterdam at $2,147/40ft. Drewry cites 'weak seasonal demand and excess capacity', while Xeneta’s Peter Sand notes carriers are 'actively managing capacity to prevent rates from falling freely'. Hapag-Lloyd and CMA CGM set new FAK rates for 15 May, but success depends on sustained discipline. Transpacific rates held firm amid holiday-driven volumes, though West Coast forwarders report widening gaps between discounted and official rates due to blanked sailings and rolling.
According to theloadstar.com, container freight spot rates on key Asia-Europe routes declined sharply this week amid weakening seasonal demand and persistent excess capacity — prompting ocean carriers to actively manage vessel deployments to prevent a broader market ‘free-fall’.
Asia-Europe Rates Retreat Amid Capacity Adjustments
The World Container Index (WCI) produced by Drewry recorded a 4% week-on-week drop on the Shanghai-Rotterdam corridor, ending at $2,147 per 40ft. The Shanghai-Genoa leg fell 8% week on week, settling at $3,071 per 40ft. For context, the WCI’s Shanghai-Rotterdam reading stood at $2,094 per 40ft on 26 February, while Shanghai-Genoa was already at $3,071 per 40ft on that date — indicating the Genoa rate held steady despite the recent decline from its post-conflict peak.
Drewry attributed the declines to “weak seasonal demand and excess capacity”. Xeneta’s chief analyst, Peter Sand, confirmed the trend: “
On the European ocean container shipping trades, these new routing patterns are now established and carriers have reorganised capacity, meaning freight rates are easing from the spike in the immediate aftermath of conflict
.” He added that average spot rates from the Far East were down 6% to North Europe and 13% to the Mediterranean compared with one month earlier.
Carrier Capacity Management in Action
Carriers are responding with deliberate supply discipline. Drewry noted only three sailings had been blanked for the upcoming week, and planned 1 May FAK (freight all kinds) increases were largely scrapped — a move Linerlytica described as “doomed after Maersk extended their end April rates through the first two weeks of May”.
Meanwhile, Hapag-Lloyd and CMA CGM announced new FAK levels effective 15 May: $3,500 per 40ft for Asia-North Europe and $4,500 per 40ft for Asia-West Mediterranean. Success hinges on disciplined capacity control. As Sand observed: “
Carriers are actively managing capacity to prevent rates from falling freely on the European trades, while also keeping the US-bound trades tight
.” Data from Linerlytica showed Far East to North Europe capacity declined 6.6% that week — four of the five major fronthaul trades saw capacity reductions.
Transpacific Holds Steady — For Now
In contrast, the transpacific trade showed resilience: the WCI’s Shanghai-Los Angeles rate rose 4% week on week to $2,934 per 40ft, while Shanghai-New York remained flat at $3,562 per 40ft. Linerlytica linked this stability to seasonal volume support — including Songkran holidays in Thailand, Reunification Day in Vietnam, and 1 May Labour Day across Asia — plus carrier caution ahead of the 1 May annual service contract deadline.
However, underlying weakness persists. Freight Right, a US West Coast forwarder, reported high-volume shippers secured spot rates of $2,100–$2,200 per 40ft this week — well below official WCI levels — citing both discounts and volatility from blanked sailings. It warned of rising ‘rolled’ bookings and schedule unreliability, noting one late-April sailing “disappeared from carrier websites entirely”, with the next available slot pushed to early May. The firm cautioned that if demand fails to rebound, “the gap between special discounted rates and official sticker prices may widen, eventually forcing a correction in general market rates”.
Source: The Loadstar
Compiled from international media by the SCI.AI editorial team.
