Trans-Pacific ocean rates swing as New Year looms
Transpacific ocean freight rates from China to the U.S. West and East Coasts stayed elevated week over week as ocean carriers held firm on pricing during the typical holiday-season slowdown.
Even with volumes easing in the slow season, carriers appear to be positioning rates ahead of Chinese New Year and the next round of annual ocean contract negotiations. For trucking, ocean pricing and capacity discipline matter because they influence how much freight moves through West and East Coast ports—and how steady the downstream drayage and over-the-road pipeline can be.
The current rate firmness on the transpacific stands in contrast to what’s happening on Asia-Europe lanes. In the fourth quarter, carriers have had more success supporting Asia-Europe rates than they have on the transpacific, in part due to more aggressive use of blanked sailings.
Blanked sailings—when scheduled vessel departures are canceled—are a tool carriers use to tighten capacity when demand softens. That tighter capacity has helped hold up pricing on the Asia-Europe side as those lanes enter the home stretch of their annual contract negotiation period.
On the transpacific, carriers have still managed to keep rates elevated week over week through the holiday slowdown, setting the stage for pricing discussions as Chinese New Year approaches and contract season gets closer.