Container Shipping Rates Slide as Overcapacity Pressures Offset Carrier Pricing Efforts

Drewry World Container Index fell 2% to $1,806 per forty-foot container for week ending November 27, marking third consecutive weekly decline on critical Transpacific headhaul trade. Rates from Shanghai to New York dropped 6% to $2,735 per container, whilst shipments to Los Angeles fell 4% to $2,089 gCaptain, undermining carrier attempts stabilising pricing ahead of annual contract negotiation season.

Freightos data showed West Coast rates plunging 32% from previous week, with East Coast rates declining 8%. Market intelligence group Linerlytica indicated outlook remains gloomy as TEU-mile demand growth has slipped below vessel supply growth. The softening reflects persistent structural overcapacity despite carriers' capacity management efforts through blank sailings.

Carriers operating Asia-Europe route attempted reversing trend by implementing higher Freight All Kinds rates ranging $3,100 to $4,000 per container effective December 1. However, ongoing national strike in Belgium created congestion at Port of Antwerp, with Drewry warning situation could worsen as several carriers plan resuming Suez Canal transits.

Orderbook-to-fleet ratio reached 31.6%, up from 27.5% two years prior, with global containership capacity increasing 5.1 million TEU or 19% since third quarter 2023, suggesting continued pressure on freight rates extending into 2026.