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Asia-US Container Rates Dip Amid Lunar New Year Slowdown and Alliance Restructuring

Ever noticed how global events can make shipping costs dance?

Well, the latest shuffle in the shipping world sees container rates from East Asia and China to the US taking a slight dip. What’s behind this? A mix of the Lunar New Year (LNY) lull and some strategic alliance shake-ups.

Current Rate Trends

According to supply chain advisors Drewry, rates to both US coasts have dipped by about 1% recently. Judah Levine, head of research at Freightos, notes that transpacific rates to the West Coast have slid by 17% since mid-January. However, before we start celebrating cheaper shipping, it’s worth noting that these rates are still more than double what they were back in 2019. So, while there’s a decline, it’s all relative.

Impact of the Lunar New Year

The LNY holiday is notorious for its impact on global shipping. With Chinese factories on hiatus, there’s a predictable slump in export volumes. Drewry anticipates that spot rates will continue to decrease slightly in the coming week due to this seasonal slowdown. It’s the shipping industry’s version of a post-holiday hangover.

Restructuring of Shipping Alliances

But it’s not just the LNY causing ripples. The shipping world is abuzz with news of major carriers reshuffling their alliances in 2025. Mediterranean Shipping Co (MSC) is parting ways with Maersk from the 2M alliance to sail solo with its beefed-up fleet. Meanwhile, Maersk is teaming up with Hapag-Lloyd to form the Gemini Alliance, promising fewer port calls but better reliability. These changes, the most significant since 2017, are expected to influence rate dynamics as carriers jostle for market share.

“In the world of shipping, the only constant is change.” – Anonymous

Looking ahead, the combination of the LNY slowdown and alliance restructurings suggests that rates might face continued downward pressure in the short term. However, the shipping industry is nothing if not unpredictable. Factors like global demand, potential port strikes, and geopolitical events could quickly change the tide.

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