European Freight Rates Continue to Slide Despite Record Container Volumes
Container shipping rates on routes from Asia to Europe are continuing to weaken, in contrast to trans-Pacific trades, where carriers have maintained upward momentum since April. Although freight prices initially rose on both trade lanes following the US attack on Iran, the European market has since lost ground.
The latest figures from Drewry highlight the divergence. Rates from Shanghai to Rotterdam fell 2% week-on-week to $3,337 per forty-foot equivalent unit (FEU). On the Shanghai–Genoa route, prices declined by just $6 compared with the previous week, following a much sharper drop of more than $430 per FEU in the preceding week.
Record Cargo Volumes Fail to Sustain European Rates
The falloff comes despite record container volumes this summer. Container Trades Statistics (CTS) said August 2026 was another monthly record for global container trade.
Global freight volumes hit 17.46 million twenty-foot equivalent units (TEU), beating the previous record set in July. Container volumes rose 4.7% in the first eight months of 2026 compared with the same period of 2025.
CTS noted the Pacific trade, which grew 5% year-on-year, and Sub-Saharan Africa, which grew 13% in volumes, as important contributors to the growth. But the organisation’s figures are likely to lag behind market developments and shipping activity is also expected to be affected by Asian holidays in October.
Part of the reason for the recent softening of freight rates is the Golden Week holiday period which has affected cargo flows and capacity utilization.
Drewry also noted a modest increase in announced blank sailings. The following week, six sailings have been canceled, compared to five in the current week, indicating a slight reduction in scheduled capacity.
Carriers Seek to Halt the Decline
Shipping lines are attempting to stabilise European freight prices by reducing capacity and introducing higher freight-all-kinds (FAK) rates from the second half of October. Nevertheless, it remains uncertain whether these measures will be sufficient to secure lasting increases.
Drewry identified the faster-than-expected return of shipping services to the Suez Canal route as the main threat to carriers’ efforts to support prices. The consultant noted that rates on the Asia–Europe trade have declined for 13 consecutive weeks, putting continued pressure on carriers’ pricing strategies.
The consultancy expects both Asia–Europe and trans-Pacific markets to remain volatile in the short term, with geopolitical developments and climate-related events potentially restricting available capacity.
Mediterranean Rates Record the Sharpest Losses
Xeneta’s latest assessment confirms the extent of the correction since July. Peter Sand, the company’s chief analyst, said spot rates departing Asia have fallen significantly over the period.
The Mediterranean has experienced the steepest decline, with rates down 43% since July 1. North European destinations have recorded a 34% decrease over the same period.
Although the pace of the decline has eased somewhat, Sand warned that prices remain elevated and continue to trend downward, suggesting that the market has yet to reach its lowest point.
The weakness is also evident in the latest weekly figures. Xeneta data shows that spot rates to North European destinations fell 2.5%, while Mediterranean rates dropped 5.9%.
The trans-Pacific market, by comparison, has become considerably more stable. Rates increased by just 1.1% week-on-week to the US West Coast and 0.5% to the US East Coast, indicating that the strong gains seen earlier in the year have moderated.
Shippers Gain Leverage as Contract Negotiations Intensify
The timing of the decline is particularly significant because the European contracting season is now fully underway. Carriers are under increasing pressure to prevent further rate erosion as shippers compare proposed long-term contract prices with lower spot-market quotations.
For cargo owners, the easing of freight costs offers welcome relief after a period of exceptionally strong demand and elevated shipping prices. The changing market balance is also improving the negotiating position of freight forwarders.
Sand said demand had remained particularly strong throughout the year, including on European routes, but sustained double-digit growth could not continue indefinitely. As demand moderates from unusually high levels, competition for shipping capacity is easing.
He added that freight forwarders are now securing better terms from carriers in long-term contract negotiations.
The key question for the coming weeks is whether carriers can successfully implement their planned rate increases despite weaker spot prices, seasonal adjustments and the prospect of more services returning to the Suez Canal route. With the European contracting season underway, the outcome will help determine how much of the recent decline is reflected in long-term shipping agreements.
