Latest news with #Freightos
Yahoo
06-08-2025
- Business
- Yahoo
Container rates unmoved by latest tariff deadline
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 sued by owner, operator of ship in deadly Baltimore bridge collapse China trade fight weakens Matson earnings Panama ports sales challenge could turn into Trump win Why a French shipping magnate with US ties is interested in China-owned port terminals The post Container rates unmoved by latest tariff deadline appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-07-2025
- Business
- Yahoo
Ocean container rates becalmed as shippers, carriers try to be calm
Ocean container rates on U.S. trade lanes are drifting with the tides as shippers and carriers sweat chaotic trade negotiations and a looming tariff deadline that could again change the calculus of the supply chain. In the past week a series of agreements were forged between the United States and several key trading partners, specifically the European Union and Japan, notes shipping analyst Freightos. These deals set a new standard with a 15% baseline U.S. tariff on most EU and Japanese exports. The U.S.-EU agreement maintains this tariff on automotive exports, which have been subjected to 25% duties since earlier this year. However, agreements reached offer some respite with a reduction from previously threatened higher tariffs. From a freight perspective, these changing dynamics have had notable implications. Trans-Atlantic ocean freight volumes were steady with 2024 levels through April, but the subsequent implementation of automotive tariffs led to a 7% year-on-year decline in monthly volumes. Trans-Atlantic container rates have been level at about $1,900 per forty foot equivalent unit (FEU) since May. A significant tariff reduction on Chinese goods from 145% to 30% in mid-May prompted an early peak season surge, as Asia-U.S. West Coast rates spiked to $6,000 per FEU by mid-June. This surge was short-lived as rates fell back to pre-rise levels of approximately $2,300 per FEU by mid-July, stabilizing thereafter as carriers adjusted capacity in response to lower demand levels. Freightos alluded to additional agreements under negotiation with other key U.S. trading nations such as Vietnam, Indonesia, and the Philippines. These preliminary pacts, involving tariffs between 19% and 20%, reflect the Trump administration's broader strategy of anchoring tariffs within the 15% to 20% range. Such moves could both stabilize and blur traditional freight demand cycles as shippers adjust strategies to leverage tariff fluctuations. An extended pause in China retaliatory tariffs serve as a harbinger for potential continuity of peak season demand. An additional 90-day extension of the 30% baseline tariff through the end of the peak season could encourage certain importers to resume bookings, albeit with the overarching uncertainty possibly impacting volume predictions, Freightos said. Price stabilization is evident in Asia-Northern Europe shipping routes, albeit with reported price dips aligned to generalized peak season demand dynamics and ongoing congestion at major European ports. Current rates have leveled out around $3,419 per FEU, reflecting the cumulative impact of both demand spikes and subsequent vessel overcapacity. Find more articles by Stuart Chirls publishing container freight data HK company offers stake in port terminals sale to Chinese company South Korea offers billions to help make US shipbuilding 'great again' Houthis make new threats against Israel-linked shipping The post Ocean container rates becalmed as shippers, carriers try to be calm appeared first on FreightWaves.
Yahoo
17-07-2025
- Business
- Yahoo
Amid uncertainty, sliding Asia-US container rates are a sure thing
Weakening import demand and the global tariff war stoked by President Donald Trump continue to push down on container rates on critical Asia-U.S. trade lanes. Tariffs have resurfaced as a significant influence on consumer prices and freight costs, said analyst Freightos in an update, with inflation in the U.S. ticking up by 2.7% in June as the effects of import tariffs are beginning to manifest more who previously managed to mitigate these impacts through strategic frontloading in response to various global disruptions, including the pandemic and trade conflicts, are now facing the expiration of such buffers. Concurrently, the European Union is preparing to impose retaliatory tariffs on $84 billion worth of U.S. goods as Washington threatens 30% tariffs as of August 1. But Brussels has said it will delay those levies in hopes of striking a deal with the Trump administration. On the cost front, the freight rates are experiencing a distinctive trend. Despite disruptions like those in the Suez Canal, the reduced demand has kept ocean rates under pressure. The typical peak season has not spared the industry, as evidenced by a 24% reduction in Asia–U.S. West Coast rates to $2,369 per forty foot equivalent unit, while Asia–U.S. East Coast prices slipped by 5% to $4,888 per FEU. Moreover, Asia–Mediterranean freight prices fell by 4% to $3,802 per FEU. Asia–Northern Europe routes have defied this decreasing trend, with rates climbing by 4% to $3,509 per FEU as Asian manufacturers likely find new business outside the American market. The shipping industry has been quick to adapt, with carriers aggressively cutting trans-Pacific capacity by almost a quarter. This measure aims to align the supply with the diminished demand and stabilize the business, which has been reeling under the dual pressures of logistical barriers and price volatility. In regions beyond the immediate economic tussle, strategic investments and partnerships are forecasted to revitalize trade infrastructures. For instance, signs of economic reconstruction are visible in Syria, which has embarked on an $800 million partnership with UAE-based port terminal operator DP World to enhance its Tartous facilities. This development mirrors global logistics players seeking to capitalize on eased sanctions and potential new trade routes to establish footholds in burgeoning markets. Find more articles by Stuart Chirls White House maritime chief leaving Ports back bill to limit Customs charging for inspection services FMC investigating Port Houston pacts with container carriers June box record for Port of Los Angeles The post Amid uncertainty, sliding Asia-US container rates are a sure thing appeared first on FreightWaves.
Yahoo
10-07-2025
- Business
- Yahoo
Tariff pauses ‘unlikely' to halt tumbling trans-Pacific rates: Freightos
Global shipping continues to experience significant fluctuations, influenced largely by the U.S. tariff strategy involving numerous trading partners, with the situation surrounding China remaining a major focal point. Recent developments in U.S. tariff policies have drawn considerable attention to ocean freight rates, marking a momentous shift in shipping dynamics, said analyst and SONAR data contributor Freightos in an update. The Freightos Baltic Index saw Asia-U.S. West Coast rates fall 8% to $3,124 per forty foot equivalent (FEU) for the week ending July 4, while Asia-U.S. East Coast prices dropped 16% to $5,159 per FEU. SONAR's Inbound Ocean TEUs Volume Index ( as of July 8 surged ahead of 2022-2024 levels. President Donald Trump recently signed an executive order extending the pause on reciprocal tariff rollouts for several U.S. trading partners until August 1. This extension offers a brief respite from imminent tariff hikes and allows additional time for negotiations that aim to reduce or completely avoid these increases. Notably, the existing tariffs with China will remain unchanged until their current expiration on August 11. This pause has subtly impacted the overall volume and direction of international shipping activities. Significant frontloading of goods from various countries was observed before the anticipated tariff hikes, especially from China due to previous tariff levels that went as high as an embargo-like 145%. This frontloading led to an overall slump in U.S. ocean imports during April and May, with trans-Pacific container rates maintaining stability, and at times, decreasing due to strategic blanked sailings by carriers. However, any potential spike in shipping activities in July is expected to be muted because of the short timeframe until the pause's expiration. Trans-Pacific spot rates from Asia to the U.S. West Coast saw a marked reduction, falling 8% during the week ending July 4 to $3,124 per forty foot equivalent unit (FEU), and further dropping to $2,390 per FEU. This represents a decline of 60% from just three weeks prior when rates were as high as $6,000 per FEU. Similarly, East Coast rates have fallen by 30% since mid-June to $4,900 per FEU, though they remain above their March-to-May levels, reflecting limited capacity additions on this route compared to the West Coast's quicker transit options. In terms of capacity adjustments, carriers are making strategic decisions to combat decreasing demand and falling rates. Planned general rate increases (GRIs) have been abandoned or reduced, with many carriers opting to remove capacity in attempts to stabilize market conditions and halt the decline. This strategic reduction in vessel availability is intended to align capacity with dropping demand and prevent further rate deterioration. Rates on Europe trades have been influenced by relatively steady peak season demand coupled with ongoing congestion at key container hubs. Despite an overall reasonable demand, rates remain below last year's peak, driven down by continual fleet growth and substantial scheduled capacity on the Asia-North Europe lane. Carriers are reportedly planning to increase blankings, reducing scheduled capacity even amid typical peak season increases, to stabilize rates, which have risen 14% to $3,384 per FEU last week but remain significantly below the previous year's highs. Find more articles by Stuart Chirls rebound as West Coast containers best East, Gulf ports Port Newark opens new electric drayage charging station Italy shipbuilder appoints new US chief Crowley adds new U.S. Northeast ocean service with Central America The post Tariff pauses 'unlikely' to halt tumbling trans-Pacific rates: Freightos appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-07-2025
- Business
- Yahoo
Trump's tariff threats trigger air freight scramble to beat impending deadline
Air cargo rates have surged as companies scramble to beat Donald Trump's July 9 tariffs deadline. The cost of transporting goods by plane between south-east and the US has risen by 11pc to $5.17 (£3.79) per kg since early May as companies rush to get products to America before the looming tariffs deadline. A 90-day pause on Mr Trump's 'liberation day' tariffs is due to expire next week and the president has threatened to impose steep tariffs on countries that do not strike a trade deal before then. 'We're going to start sending letters out to various countries, starting tomorrow,' Mr Trump told reporters last week, adding that import taxes would 'range in value from maybe 60pc or 70pc tariffs to 10pc and 20pc tariffs'. Air freight is a faster way of transporting goods from Asia to the US. It typically takes just two or three days, compared to between 10 and 15 days when goods are moved by sea. Shipping is typically more popular because it is far cheaper. However, companies are paying a premium in an effort to move stock to the US before tariffs take effect. 'If the tariffs land tomorrow and say those apply to a huge volume of stock on water, then you're not protected from the increase in tariffs,' said one industry source. 'If you have sent those goods via air freight, you get them there quicker.' Eytan Buchman, from Freightos, a cargo platform, said there had been 'about a 10pc increase in air cargo imports to the United States last week compared to the prior week'. Companies were taking to the air to 'mitigate or minimise the risk of not being able to get products where they need it, when they need it,' he said. Most goods that are transported by air travel in the belly of passenger planes, rather than on dedicated cargo planes. The higher frequency of passenger planes during the summer months makes it easier for businesses to send more by air as Mr Trump's deadline looms. Some airlines that devote a portion of their business to air freight. It makes up a significant part of business for Cathay Pacific, the flag carrier of Hong Kong, given that it runs frequent flights between China and the US. Last year it made revenues of HK$27.42bn (£2.56bn) from its cargo business, contributing just over 25pc of the group's annual earnings. A spokesman said: 'The temporary pause in tariff situation has helped stabilise our commercial performance over the past few weeks.' As new tariffs come into effect 'these will hopefully set a new baseline for future demand and remove some of the uncertainty we experienced at the start of the year,' they added. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
