Maritime and Logistics News

Trans-Pacific shippers’ turn to pause as box rates end slide

While trans-Pacific shippers fatigued from the Great Tariff War step back, the market has seen a pause in plunging container rates just as the peak season is supposed to be getting underway.

Spot rates on various trade routes have seen dramatic shifts, said analyst Xeneta in a market update, reflecting broader industry challenges and responses.

Market average spot rates for container shipping on July 18 for the Far East to U.S. West Coast route stood at $2,313 per forty foot equivalent unit (FEU), while the rate to the U.S. East Coast is higher at $4,314 per FEU.

A deeper dive shows that West Coast prices have seen no change as of mid-July, halting a steep decline amounting to 28% over the first few days of this month. The U.S. East Coast rates have similarly seen a decline, dropping 7% since July 14, and a 26% fall since the end of June. Overall, the drop to the West Coast stands at 58% since peaking on June 1, whereas the rates into the East Coast decreased by 35% over the same timeframe.

These dynamics suggest shifts in trading priorities and logistical strategies. The notable variance between trading routes — the gap between the West and East Coast lanes — has inflated to $2,000, nearly double that on June 1, which was $1,155. This enlarged gap spotlights the pronounced economic adjustments facing these trades.

“Sentiment has turned and rates are falling despite the higher U.S.-China tariffs still being on hold, and the deadline for the rest of the world e