The latest data from analyst Freightos shows that container freight rates from Asia continue to decline, falling below the lowest point in 2024.

This downward trend can be attributed to a variety of factors, including reduced demand after the Lunar New Year, restructuring of new airline alliances, and increased capacity.

Specifically, freight rates in the Asia-Europe market fell 11 percent to $2,740 per 40-foot TEU, 14 percent below the previous 2024 low. Similarly, freight rates from Asia to the Mediterranean have fallen by 9% and are now below $3,800 per 40-foot TEU. The figures highlight unusually strong post-holiday demand, which could be exacerbated by expected stockpiling ahead of the holidays to mitigate delays caused by the diversion of the Red Sea.

Despite overall congestion in the market, especially in European hubs, airlines tried to increase general rates in April. Those efforts in March, however, had little effect. The trans-Pacific route is equally complicated. While there are signs that front-loading has triggered stronger demand, expectations of final tariffs and ample inventory levels suggest that the second half of the year could be weaker than usual.

Rates on trans-Pacific routes are also on a downward trend, with westbound freight to the United States at about $2,400 per FEU. Rates on the eastern route were slightly higher at $3,500, but both saw significant declines and were 18% lower than the 2024 figure. Factors contributing to this decline include alliance restructuring and a capacity-driven oversupply that initially emerged in 2023, although the Red Sea diversion temporarily absorbed the oversupply.

Freightos' analysis expects further market volatility as the global economy faces uncertainties, including the possibility of increased tariffs on Chinese goods and the possible reinstatement of tariffs on Canadian and Mexican products. Further complicating the outlook, the Federal Maritime Commission is conducting an investigation into the international implications of the container bottleneck.