Asian Container Freight Rates To North America Drop Sharply After Early Shipping Surge To Avoid Tariffs

Experts predict that this downward trend will continue, especially as shipping capacity keeps rising while demand shows no sign of recovery. This is an important signal for enterprises engaged in import–export activities to the U.S. market and beyond.

Container Freight Rates Decline as Demand Cools

According to a report from shipping consultancy Xeneta, average freight rates on the Trans-Pacific route (Far East – U.S. West Coast) for the week ending August 13 dropped to just over USD 2,000/FEU (40-foot container) — the lowest level since late 2023, when the Red Sea crisis severely impacted global supply chains.

Details include:

• Far East – U.S. West Coast: ~USD 2,000/FEU, down from USD 2,098/FEU the previous week.

• Far East – U.S. East Coast: USD 3,174/FEU, down from USD 3,311/FEU.

• North Europe – U.S. East Coast: USD 1,941/FEU, down from USD 2,015/FEU.

• Routes from Far East to North Europe and the Mediterranean also recorded slight decreases.

This reflects the overall sea freight market trend, where container rates on most major trade lanes remain under downward pressure.

Key Reasons Behind the Rate Decline

Three main factors explain this fall:

1. Early shipments to avoid tariffs
   After the “last-minute rush” to move goods before new tariffs took effect, current demand has cooled significantly.

2. Rising vessel capacity
   Carriers continue to add shipping capacity, but market demand has not caught up, creating oversupply.

3. U.S.–China tariff policies
   The 90-day extension of postponed tariff hikes failed to trigger another shipping surge, leaving the market with little short-term growth momentum.

Peter Sand, Chief Analyst at Xeneta, commented:
“Shippers took advantage of the opportunity to move goods early. Now there is no pent-up demand, so spot rates are expected to keep falling in the coming weeks.”

Outlook for the Sea Freight Market

In the current context, experts forecast:

• Container freight rates will continue declining on major routes from Asia to North America, Northern Europe, and the Mediterranean.

• If demand does not rebound, excess capacity could drive rates even lower.

• U.S.–China trade policies will remain a major factor shaping the sea freight market in 2025.

This presents both opportunities and challenges for businesses: while transport costs may decrease, shipping plans and supply chain management require careful calculation to avoid risks.

Dolphin Sea Air – Cost-Optimized Logistics Solutions for Enterprises

Amid a volatile market, Dolphin Sea Air stands by its customers with comprehensive logistics solutions:

• Providing timely updates on freight rates and market trends.

• Consulting on optimized shipping routes to save costs.

• Offering end-to-end logistics services: sea freight, air freight, multimodal transport, customs brokerage, and warehousing solutions.

???? Contact Dolphin Sea Air Services Corp. today for detailed consultation to help your business optimize costs and maintain a competitive edge in international trade.

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