Freight costs steady after early September spike

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From pv magazine Global

Freight container shipping spot rates have declined week-on-week, with a spike registered at the start of September wiped out, according to data from Xeneta, a Norwegian ocean and freight rate benchmarking platform.

Xeneta’s latest update explains that September brought “turmoil and upheaval” to the US-bound short-term market out of the Far East, with a significant jump in spot rates on September 1 and “some turbulence” during the month.

As of October 2, the market average spot rate from the Far East to the US West Coast stood at $1,681 per forty-foot equivalent unit (FEU), compared to $2,638 per FEU from the Far East to the US East Coast. These figures are both down 8% compared to the end of August.

In contrast, short-term rates for shipping from the Far East into Europe were in consistent decline throughout September, standing at $1,730 per FEU from the Far East to North Europe as of October 2, and $2,220 per FEU from the Far East to the Mediterranean.

Xeneta’s latest analysis adds that spot rates from North Europe into the US East Coast have fallen by 5.5% from one week ago, 5.8% from two weeks ago and 10.2% from the end of August, currently standing at $1,648 per FEU for a 21-month low and the lowest point since the end of 2023.

Peter Sand, Xeneta Chief Analyst, commented that the September spot rate spike should act as a reminder that markets are still volatile.

“Freight rates will continue a steady decline for the rest of 2025, but there is always the potential for drama on the way,” Sand added. “China has passed legislation allowing them to take countermeasures against any nation it believes is acting against its national trade interests. The lights are still flashing red on the geopolitical dashboard so it would be foolish for shippers to believe there is not potential for more pain as we look ahead to 2026.”

pv magazine previously reported freight costs represent around 4% of a solar panel’s total costs. Higher freight costs often increase the final price of solar installations, which can in turn make projects more expensive for installers and end-users and in some cases, can bring logistical challenges and project uncertainty.

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