The latest Global Container Index released by Drury Shipping Consulting shows that the global average spot freight rate fell 4% to $2,264 per foot, but spot freight rates from Asia to the West and East coasts of the United States fell 9% and 7%, respectively, from the previous month. In the same week, Northern European and Mediterranean spot rates fell by 2 per cent and 1 per cent respectively.

Antonella Teodoro, an analyst at MDS Transmodal, commented: "The uncertainty created by tariffs announced or imposed by the United States and subsequent retaliatory measures announced or imposed by their counterparts, coupled with new agreements among major shipping lines in an unstable geopolitical landscape, will increase the difficulty of separating the 'causes' from the' effects' of the synchronized changes we are witnessing."

"As the April renewal of the trans-Pacific Eastbound contract approaches, market rates are expected to fluctuate as carriers push for general rate increases," said Alvin Fuh, vice-president of shipping at China-Philippines Shipping Group, a Taiwanese freight forwarding company.

The bank also pointed out that the Trump administration's adjustment of the US tariff policy has made customers take a wait-and-see attitude and reduce freight volumes.

"Due to the formation of new alliances and reduced cargo volumes, there has been a reduction in capacity on the US-West route, resulting in a more balanced supply and demand," the bank said.

Even with more balanced capacity in the Pacific, rates continue to slide despite capacity management measures that shipping lines have put in place to try to boost spot rates during the key contract season.

In the Pacific, MDS Transmodal's data tell a very different story as carriers pull back capacity to support plummeting spot rates.

Teodoro commented: "The number of [Pacific route] routes held steady at 77 between December and January, but dropped to 74 by March, a reduction of three routes. In January, planned capacity increased by 1.2% to 2.73 million TEUs, but fell by 0.6% in February and 3.3% in March. The net change between December and March was -2.8 per cent - the only route where capacity continued to decline."

"Are these signs of weakening demand or a reduction in strategic services in the corridor?" asked Teodoro.

With freight rates falling rapidly, there is evidence that carriers are starting to "anchor" ships in the Atlantic, similar to what happened last year when ship deliveries increased.

Xeneta chief analyst Peter Sand said in January that shipping companies "parked" a lot of capacity on Atlantic routes last year.

"According to the February data, freight volumes in the US and Europe are on a downward trend and utilisation rates are falling in all major trades," Sand said.

Teodoro pointed to new evidence that shipping companies are increasingly redeploying capacity to the Atlantic.

"The number of routes has grown modestly and steadily, with 41 routes from December to January increasing to 43 by February 2025, with two additional routes. This masked a staggering increase in capacity, which rose 9.6% from 731,000 teu in December to 802,000 teu in February and 809,000 teu in March, for an overall increase of 10.6%. Notably, capacity grew 7.9 per cent month-on-month in February, the largest increase of any route." "Teodoro said.

Teodoro added: "The Atlantic Corridor is showing the strongest capacity growth: is this a response to higher demand or a repositioning of the market?" 'she asked.

In the Far East to Europe trade, which includes the subcontinent and the Arabian Gulf, MDS Transmodal reported a steady increase in the number of services, from 180 in December to 187 in March.

Teodoro said: "Booked capacity grew strongly in February, with available capacity reaching 4.31 million TEUs, up 3.2% month-on-month and 3.8% month-on-month; Capacity fell back slightly in March, down 1.1 per cent, but available capacity remains well above December's level, with a net increase of 2.7 per cent."