Global – October 17, 2026 -- Asia-N. Europe container rates fell 2-3% last week to $3,260 per FEU, and Asia-Mediterranean rates fell to $3,555 per FEU, as carriers send more vessels through the Red Sea. Rates on both lanes have slid since mid-July, according to the Freightos Baltic Index.
Premier Alliance to resume some Red Sea services this month
The Premier Alliance, the last holdout among the three alliances and MSC, announced that some services will resume Red Sea transits this month. Carriers have been gradually adding Red Sea traffic despite elevated regional tension. The shorter route lifts effective capacity, which Freightos names as a likely contributor to the Asia-Europe rate decline.
Saudi-backed forces are trying to recapture areas of the Yemeni coast of the Bab el Mandeb Strait that the Houthis recently seized. Increased Saudi crude flows through the southern Red Sea account for part of the recovery in Middle East oil exports. Some estimates put those exports, via the Strait of Hormuz and alternatives, near pre-war levels, and crude prices have eased moderately. Bunker prices remain level with the last few weeks, because higher crude volumes may take time to lower refined product prices.
Mediterranean rates return to pre-peak-season levels
Red Sea sailings have increased more sharply on Asia-Mediterranean services. Rates to the Mediterranean have slid back to pre-peak-season levels even though Far East congestion, though improving, still ties up capacity. Asia-N. Europe prices remain about $400 per FEU above mid-May, as congestion persists at some N. Europe hubs. Rates on both lanes were level so far this week over the Golden Week holiday, as carriers blanked sailings during the low-demand stretch.
Transpacific rates hold near $8,300-$9,600 per FEU
Rates to the US West Coast fell to $8,322 per FEU last week, while East Coast prices held at $9,600 per FEU. Freightos expects additional blanked sailings over Golden Week to keep prices stable in the near term.
Backlogs from nearly three months of weather-related disruption at major Chinese ports may also keep the transpacific rate floor elevated. That floor could hold through the usual low-demand months between peak season and the Lunar New Year rush.
China-North America air rates drop 18% on Golden Week demand dip
Freightos Air Index data show China-N. America weekly prices fell 18% to $5.60 per kg. China-N. Europe prices eased 7% to $3.83 per kg as demand cooled over Golden Week. N. Europe-N. America prices rose 1%.
Recent analyses confirm that data center components are a significant driver of global air cargo demand growth. E-commerce volumes remain significant but are contracting in some major markets.