Freightos Baltic Index: West Coast Rates Rise 4% to $2,828 per FEU
CRGO•Freightos Baltic Index shows Asia-US West Coast rates surged 4% to $2,828 per FEU and East Coast rates edged up 1% to $4,340, remaining about $1,000 above pre-Iran war levels. Carriers blanked sailings and plan further mid-month hikes during low demand, betting on peak-season recovery.
1. Trans-Pacific Freight Rate Trends
The weekly Freightos Baltic Index shows Asia-US West Coast spot rates climbed 4% to $2,828 per forty-foot equivalent unit (FEU) for the week ended May 8, while East Coast rates rose 1% to $4,340 per FEU, both roughly $1,000 above pre-Iran war benchmarks.
2. Carrier Capacity Management Tactics
Shipping lines have blanked sailings and signaled additional mid-month rate increases to tighten available space and shore up elevated spot rates as overall trans-Pacific demand remains subdued.
3. Geopolitical Risks and Cost Implications
Resumed attacks in the Strait of Hormuz and Iran’s new Gulf traffic authority have raised transit risks, with one major carrier attributing an incremental $500 million in monthly costs to the strait closure, costs that have been passed through to freight rates.
4. Peak Season Outlook
The U.S. National Retail Federation projects June import volumes 2% below May, with a modest 4% uptick in July before easing, underscoring importer caution and a potentially weak second half for carriers facing high fuel and handling costs.
