News / Rates update, week 51: GRIs boost prices, with more to come in January

Shanghai Yangshan deep water container terminal ID 117637608 © Chuyu | Dreamstime.com

Container spot rates on the transpacific trades shot up this week, on the back of a series of mid-December general rate increases (GRIs) that appear to have significantly boosted prices.

Shippers on the transpacific eastbound route from Asia into the US west coast found themselves paying nearly an additional $1,000 per 40ft after Drewry’s World Container Index (WCIU) recorded a 26% week-on-week hike in the spot rate.

The WCI’s Shanghai-Los Angeles leg rose $913 per box, to finish the week at $4,499 per 40ft.

And shippers on the US east and Gulf coasts faced similar price increases, with the WCI’s Shanghai-New York leg rising 17% week on week, to finish at $6,074 per 40ft.

While the Shanghai-New York rate rose marginally last week, this week’s increase on the Shanghai-Los Angeles was the first upward movement for a number of weeks.

Meanwhile Xeneta’s XSI short-term index, which tracks both transpacific routes, recorded a 10% week-on-week rise, to $4,391 per 40ft.

“Drewry expects an increase in rates on the transpacific trade in the coming week, driven by front-loading ahead of the looming ILA port strike in January and anticipated tariff hikes under the incoming Trump administration,” the analyst said; and a series of January GRIs and other planned surcharges next month could see transpacific spot rates grow sharply again.

A number of transpacific carriers have filed 1 January GRIs with the FMC: Cosco, Evergreen, Hapag-Lloyd, HMM and Yang Ming all aiming for $3,000 per 40ft; CMA CGM and Zim are set to apply $2,000 per 40ft; and ONE eyeing $1,000.

Meanwhile, transatlantic shippers also saw spot rates on the rise, with the WCI’s headhaul Rotterdam-New York leg gaining 3% week on week, to finish at $2,713 per 40ft, some 83% up year on year. The transatlantic portion of the XSI saw a week-on-week rate increase of 3%, to $2,814 per 40ft.

Transatlantic spot rates could be set to rise further next month if other carriers follow the lead of MSC, which yesterday advised that it will hike an intended emergency operation surcharge (EOS) on 18 January from planned $1,000 per 40ft high cubed, to $2,500 on North Europe to US shipments.

MSC told customers: “In light of the significant changes in the transatlantic networks to restructure the services beginning of 2025, we foresee operational disruption during the first months of next year. For this reason, MSC announces the increase of the Emergency Operation Surcharge (EOS) as from 18 January until further notice.”

Of course, the scheduled implementation date is some three days after the ILA-USMX 15 January negotiations deadline, so there are still a large number of significant variables for transatlantic shippers to consider.

For Asia-Europe shippers, it was a relatively quiet week, with spot freight rates on the WCI’s Shanghai-Rotterdam slipping 1%, to $4,819 per 40ft, and reversing last week’s marginal GRI-induced increase.

The WCI’s Shanghai-Genoa leg also slipped 2%, to $5,424 per 40ft.

Traditionally, most shippers and forwarders would have by now concluded their annual rate negotiations with their carriers on the Asia-Europe trades. This year, however, both carriers and 3PLs expect the majority of shippers to now sign these deals in the first quarter of next year.