Freight markets witnessed a relatively subdued response following last week’s dramatic trade announcements, contrasting sharply with earlier reactions to tariff developments.
Previously, shippers hurriedly loaded goods between announcement periods to beat deadlines. However, the current situation reveals a lack of urgency ahead of the August 7 tariff imposition deadline set by President Donald Trump, according to the latest update by analyst Freightos. This may be attributed to the weariness of shippers who previously engaged in proactive frontloading, leading to a diminished urgency during this tariff window.
Trans-Pacific container rates to the West Coast have maintained stability for three consecutive weeks, remaining at an average of $2,300 per forty-foot equivalent unit (FEU). Daily rates have seen a slight decrease of approximately $100 since August 1. In contrast, the East Coast experienced a 4% drop to $3,950 per FEU, marking the sixth week in a row of declining rates. Meanwhile, trans-Atlantic rates have also held steady at around $1,900 per FEU, indicating persistent stability in that corridor.
Sources told FreightWaves that related factors have been affecting eastbound volumes from China: Congestion from a ‘terrible’ situation with blank sailings as carriers try to right-size capacity, while shippers waiting out the tariff chaos hold back loaded containers, treating the docks like a warehouse.
Rates to Long Beach from affected regions such as Vietnam and India have remained mostly unchanged, Freightos said, since the tariff announcement on August 1. However, rates from Indonesia, which are subject to a 19% tariff commencing August 7 have increased moderately by 8%.
There is a possibility that the trans-Pacific ocean demand might witness a rebound, fueled by a 90-day tariff extension for China. Yet, it is anticipated that any potential surge will not match the previous peak season intensity due to extensive frontloading earlier in the year. This suggests that the apex of the peak shipping season has likely already occurred.
Turning to Asia-North Europe trade lanes, container rates have remained stable at approximately $3,400 per FEU — a level consistent since early July. This stability persists despite reports of a relatively robust peak season, underscored by ongoing congestion issues that typically exert upward pressure on freight rates. Conversely, the Asia-Mediterranean market has seen a 4% reduction to $3,263 per FEU, marking a consecutive seven-week decline and resulting in these prices dipping below Asia-North Europe levels for the first time since November.
The plaintiffs are seeking damages for vessel repairs and coverage for any third party claims.
Find more articles by Stuart Chirls here.
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