Trans-Pacific Container Rates Decline More Slowly: Freight Market Remains Volatile

Slower Rate Decline – Has the Market Stabilized?

After several weeks of steep drops, container freight rates on the Trans-Pacific route have begun to level off. However, this stabilization does not necessarily signal that the global logistics market has entered a steady phase. On the contrary, recent data highlights growing divergence across major trade lanes, presenting both challenges and opportunities for import-export businesses.

According to a July 18 market report from analytics firm Xeneta, the average spot rate from the Far East to the U.S. West Coast reached USD 2,313 per 40-foot equivalent unit (FEU), while rates to the U.S. East Coast were significantly higher at USD 4,314/FEU. This reflects a near USD 2,000 gap—almost double the USD 1,155 spread recorded on June 1.

Causes and Context: Why Does the Market Remain Volatile?

This growing divergence reflects strategic adjustments by carriers and increasing caution among shippers. While spot rates on the U.S. West Coast route had plunged by as much as 58% since early June, the pace of decline began to slow by mid-July. The East Coast route also saw a 35% drop during the same period, but the rate of decline has been more gradual.

According to Emily Stausboll, Senior Analyst at Xeneta, despite the current pause in heightened tariffs between the U.S. and China, market sentiment is shifting significantly. “Shippers can’t continue to front-load exports indefinitely, and regardless of what happens with tariffs, the long-term rate trend is downward,” she noted.

Carriers’ collective move to reduce capacity on the Trans-Pacific route has helped curb further price erosion, yet they continue to face mounting pressure to maintain rate stability as the peak season approaches.

Comparison with Other Routes: Growing Polarization

While the U.S. market is showing broad-based rate declines, the Far East–North Europe route is experiencing a markedly different trend. Freight rates on this lane have surged by 18% since June and by as much as 78% since late May, reaching USD 3,410 per FEU.

This sharp increase is primarily driven by congestion at Northern European ports, fueled by several factors:

• A wave of newly launched large vessels added earlier this year
• Strikes and labor disruptions
• Low water levels on inland waterways like the Rhine, affecting domestic transport

In contrast, the Far East–Mediterranean route is mirroring the U.S. trend, with spot rates easing slightly to USD 3,853 per FEU. These dynamics highlight the uneven global redistribution of vessel capacity, making it increasingly difficult for carriers to maintain profitability without triggering supply–demand imbalances.

Strategic Lessons for Import-Export Businesses

For companies engaged in international trade, current freight rate fluctuations underscore the urgent need to:

• Closely monitor market developments
• Partner with reliable logistics providers for timely updates
• Develop flexible shipping plans with contingency options for rerouting or vessel changes

Deep rate cuts are not always “good news” if they come with instability in transport capacity, delivery timelines, or empty container availability. As a result, ensuring stability and optimizing the entire logistics journey is becoming more critical than ever.

Dolphin Sea Air Services Corp. – Supporting Businesses Through Every Market Shift

As a leading provider of international transportation and logistics, Dolphin Sea Air Services Corp. continuously monitors global freight rate movements to help clients optimize costs, ensure steady cargo flow, and maintain on-time delivery.

We offer:

• Sea and air freight services across major trade lanes: the U.S., Europe, Northeast Asia, and ASEAN
• Tailored logistics solutions for specific industries
• Real-time updates on freight rates and surcharges to help clients stay in control of import-export plans

With a global agent network and strategic partners in the U.S., Europe, and Southeast Asia, Dolphin delivers effective transport options—even during periods of high market volatility.

Conclusion

While container rates on the Trans-Pacific route have temporarily “cooled,” the market remains filled with uncertainties. The growing divergence across trade lanes clearly signals that businesses must adopt well-aligned logistics strategies rather than focusing solely on short-term pricing.

Dolphin Sea Air Services Corp. is committed to supporting Vietnamese enterprises through this challenging period—with deep market insight, global network strength, and specialized logistics expertise.

Contact us today for consultation and the latest freight rate updates on your preferred routes:

• Email: info@dolphinseaair.com
• Hotline: 1900 986813
• Fanpage: Dolphin Sea Air Logistics

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