Global – October 17, 2026 -- Asia-Mediterranean container prices rose 7% to $3,800/FEU last week, about 70% above year-ago levels, as repeated Houthi missile attacks on Riyadh airport raised the risk of renewed Red Sea strikes just as shippers enter 2027 contract tendering, according to the Freightos Baltic Index.
Saudi airport attacks close Riyadh and disrupt other hubs
Multiple Houthi missile attacks since late last week shut down airport operations in Riyadh. Interceptions at Dammam airport and attacks on other airports caused further disruptions and cancellations. Saudi Arabia has promised retaliation.
The Houthis tried to close the Bab el-Mandeb Strait to Saudi-linked traffic in July and attacked several vessels into August, after nearly nine months of quiet. Some foreign air carriers have suspended services to the affected airports. Saudi Arabia is not a major air cargo transhipment hub, unlike some other Gulf states, so the closures may not be felt more broadly.
Asia-Europe ocean rates stay above $3,000/FEU despite spot declines since July
Carriers have gradually increased Asia-Europe Red Sea transits since June. A post-peak-season demand slide was the larger factor behind uninterrupted spot rate decreases on these lanes since July. Prices remain above $3,000/FEU on both Asia-N. Europe and Asia-Mediterranean, which favors carriers even without further increases. Some carriers have already announced October rate increases.
Last year, carriers cut capacity and pushed through a series of Q4 general rate increases to lift the benchmark for long-term negotiations. This year, lingering congestion in N. Europe and the Far East is partly supporting rates, although a strike at German ports was recently averted. Newbuild deliveries next year and possibly higher effective capacity from more Red Sea transits have some shippers expecting lower rates in 2027. They are hesitant to lock in annual rates at current levels.
Weekly Freightos Baltic Index moves: Asia-US West Coast (FBX01) fell 2%, while Asia-US East Coast (FBX03) and Asia-N. Europe (FBX11) were flat.
Transpacific rates dip 2% to $8,150/FEU as peak season fades
Sustained peak-season demand and Far East congestion have held transpacific rates near peak levels since July. Far East-US West Coast prices slipped 2% to $8,150/FEU, which could mark the start of a downward trend now that Golden Week has passed.
The National Retail Federation projects US ocean import arrivals will drop 11% month on month in November. Rates may ease until pre-Lunar New Year demand builds late this year or from January. Full-year volumes would approach the 2021 record, at 1.4% above 2025 and 1.2% above 2024.
Air cargo index climbs 33% year on year as freighter capacity shifts to transpacific
Freighter capacity is moving away from Asia-Europe as e-commerce volumes slump, toward faster-growing lanes such as AI-fueled transpacific. Elevated fuel costs and strong global volume growth have lifted the Freightos Air Index global benchmark 33% year on year and 29% above levels before the Strait of Hormuz closure.
South East Asia-N. America rates are 40% above both last year and pre-war levels, reflecting data center volume growth. China-Europe prices fell to $3.58/kg last week, down 9% year on year and just 4% above pre-war levels.
Weekly air rates rose 3% on China-N. America and 2% on N. Europe-N. America, and fell 7% on China-N. Europe.