Maersk leads container shippers down as freight rates plunge to nearly two-year lows

[Container ship in Shanghai Port]
Sky_Blue/iStock Unreleased via Getty Images

Shipping companies A.P. Moller-Maersk (OTCPK:AMKBY [https://seekingalpha.com/symbol/AMKBY]) (OTCPK:AMKAF [https://seekingalpha.com/symbol/AMKAF]) and Hapag-Lloyd (OTCPK:HPGLY [https://seekingalpha.com/symbol/HPGLY]) (OTCPK:HLAGF [https://seekingalpha.com/symbol/HLAGF]) -6.6% and -7.5%, respectively, in Friday's trading as container freight rates on major routes out of Shanghai sink [https://www.tradewindsnews.com/containers/big-drops-bring-container-spot-rates-back-to-levels-seen-before-red-sea-diversions/2-1-1874665] to levels last seen before Red Sea diversions began in late 2023.

The Shanghai Containerized Freight Index has plunged more than 14% in the past week, the largest weekly percentage decline in nine years, according to the Shanghai Shipping Exchange.

The week's biggest declines have occurred on the TransPacific trade: Spot rates from Shanghai to the U.S. West Coast plummeted 31% to $1,646/feu, and rates from Shanghai to the U.S. East Coast plunged 23% to $2,557/feu.

Rates from Asia to Europe also continue to decline, with rates to north Europe and the Mediterranean both down more than 10% to $1,052/teu and $1,638/teu, respectively.

"Far East-to-U.S. west coast rates are now down 56% from their recent peak reached in week 23 and 61% down from week 1," J.P. Morgan analysts said, and maritime research consultancy Drewry said in a note that its world container index, which tracks freight rates for 40 ft containers on eight major shipping routes, shows the major Trans Pacific and Asia-Europe routes are now "aligned in a downwards trajectory."

The declines come ahead of Golden Week that traditionally marks the start of shipping's slow season, which analysts said offers a bleak prospect for rates in the coming weeks.

MORE ON A.P. MØLLER-MAERSK AND HAPAG-LLOYD

* Revisiting My Lowered Maersk Target After Q2 2025 [https://seekingalpha.com/article/4817927-revisiting-my-lowered-maersk-target-after-q2-2025]
* A.P. Møller-Maersk Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4816063-a-p-moller-maersk-a-s-2025-q2-results-earnings-call-presentation]
* Hapag-Lloyd Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4813562-hapag-lloyd-aktiengesellschaft-2025-q2-results-earnings-call-presentation]