Transpacific Eastbound (TPEB) capacity remains open and available post-Lunar New Year (LNY), according to the latest Asia-North America ocean freight market update of Flexport, which also noted that rates are "soft" on most origin-destination combinations.

In its freight market update on February 7, Flexport said in the US, the space and volume crunch around LNY appears back to normal, but market capacity has remained higher than in years past.

Flexport then warned of routine blank sailings to continue in attempts to stabilize rates as it noted that the low TPEB demand is further playing a key role in keeping West Coast port and rail congestion low.

For ocean shipping between Asia-Europe, the Flexport report said space remains open in this post-LNY period, and booking intake is "gradually improving" — although volumes for the next few weeks are still at a low level.

It said rates for the trade lane are also under pressure again due to low demand post-LNY.

"[Rates are] generally reduced or extended for the first half of February, and the same is expected for the second half," Flexport added.

Capacity outpaces demand in air freight

In terms of air freight, the report said for North China — which includes Shanghai — the market is slow with capacity outpacing demand, which was low at the beginning of the week but is slowly starting to pick up.

For South China — Shenzhen, Guangzhou, Dongguan, and Hong Kong — Flexport said demand had not recovered post-LNY and rates have decreased compared to last week.

For Southeast Asia, the report said demand ex-Southeast Asia overall remains low, with capacity widely available.

It noted that Vietnam especially is seeing a downward trend for the export market.