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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
11-06-2025
- Business
- Yahoo
Early peak coming as trans-Pacific container rates double
The past week has seen significant changes in trans-Pacific container rates, marking a significant shift on the shipping horizon as the peak season approaches. Container rates from Asia to the U.S. West Coast surged in the latest data from SONAR and Freightos, as shippers pushed the peak season early to frontload goods ahead of potential tariff pauses in July and August, while ocean lines implemented general rate increases (GRIs) as of June 1. The SONAR Container Atlas spot rate for loaded boxes departing Yantian, China for Los Angeles was $6,645 per forty foot equivalent unit (FEU) as of June 10, up from $6,100 on June 6. The rate from Ningbo, China increased to $6,439 from $5,797. The Freightos Baltic Index for the week ending June 6 including GRIs saw rates double to $5,488 per FEU, with daily rates surpassing $6,000. Prices to the U.S. East Coast experienced a 60% increase, reaching $6,410 per FEU. Current rates exceed $7,000 per FEU, aligning with figures from the previous year when capacity constraints, driven by Red Sea dynamics and an early peak season, compounded by the strike threat by the International Longshoremen's Association, pushed prices are preparing for further trans-Pacific GRIs, ranging between $1,000 and $3,000 per FEU, scheduled for mid-June and July 1. This is in response to China's ports grappling with backlogs from an earlier lull in demand, alongside the realignment of vessels and equipment to other lanes during the tariff quiet period. Freightos research chief Judah Levine in a note said that as peak volumes converge with still-limited capacity and ongoing port congestion at several Far East hubs, the likelihood of these rate increases taking hold in June and July is significant. There is an expectation for rate relief by mid-July as demand eases, congestion dissipates, and more capacity is restored to trans-Pacific routes. The U.S. ports are proactively preparing for the incoming surge of containers, incorporating lessons learned from the pandemic to mitigate potential congestion. The National Retail Federation had anticipated a decline in U.S. ocean import volumes in May, rebounding in June and peaking in July, as high tariffs had previously suppressed demand. They revised this outlook, noting current rate behavior and GRI announcements. These projections suggest July's peak season volumes will be 9% lower than last year's August peak and 4% less than April's levels, reflecting the impact of both strong April frontloading and a shipping pause 'air pocket' because of high China tariffs. Even with significant inventory build-up earlier in the year, this year's tariff-driven peak season may not witness the anticipated negotiations continue as the White House works towards securing trade agreements with China, the European Union, and other major trade partners ahead of the July and August deadlines. Any successful trade agreements may lead to a de-escalation of tariffs, but the forward pull of this year's shipping volumes suggests demand and rates may decline in the late third quarter and into the fourth quarter, regardless. This burgeoning demand for trans-Pacific containers has ripple effects on other trade routes. Freightos Asia-Mediterranean rates recently climbed by 32% to $4,285 per FEU, with daily rates now surpassing $4,800 per FEU as carriers plan mid-month GRIs and peak season surcharges for Asia-Europe and other lanes due to capacity shifts to the trans-Pacific route. Find more articles by Stuart Chirls see cargo surge coming WATCH: Four crew missing after container ship explosion off coast of India Trac Intermodal preps 200K chassis for China container surgeNew world order: Ocean rates up 88% as shippers pounce on lower tariffs The post Early peak coming as trans-Pacific container rates double appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
Freightos CEO Zvi Schreiber to Present at the Investor Summit Virtual on June 10, 2025
BARCELONA / / June 9, 2025 / Freightos announced that Zvi Schreiber, CEO of Freightos, will be presenting at the Investor Summit Virtual taking place on June 10. About Freightos LimitedFreightos® (NASDAQ:CRGO) is the leading vendor-neutral global freight booking platform. Airlines, ocean carriers, thousands of freight forwarders, and well over ten thousand importers and exporters connect on Freightos, making world trade faster, more efficient and more resilient. The Freightos platform digitizes the trillion dollar international freight industry, supported by a suite of software solutions that span pricing, quoting, booking, shipment management, and payments for global businesses of all shapes and sizes. Products include Freightos Enterprise for multinational importers and exporters, Freightos Marketplace for small importers, WebCargo and 7LFreight by WebCargo for forwarders, WebCargo for Airlines, and Clearit, a digital customs brokerage. Freightos is also a leading provider of real-time industry data via Freightos Terminal, which includes the world's leading spot pricing indexes, Freightos Air Index (FAX) for air cargo and Freightos Baltic Index (FBX) for container shipping. Event: Q2 Investor SummitPresentation Time: June 10, 12:00 PM ETLocation: WEBCAST LINK Conference Overview and Structure The Investor Summit is an exclusive event for investors who specialize in small and microcap stocks. It is an opportunity to be introduced to and speak with management at some of the most attractive small companies, learn from various subject matter experts, and see what your peers are doing in this market. This quarter's event is focused on MicroCap companies who are undervalued, have a catalyst, and are undervalued. Registration for Investors To request free registration, please go to our website ( and click the "Registration" button. Sponsors: Access Newswire PCG Advisory QuoteMedia AGP MZ Group News Compliments of ACCESS Newswire For More Information Please visit: contact johnna-mae@ SOURCE: Freightos Limited View the original press release on ACCESS Newswire Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
New week sees ocean container rates soar
The pause in the tariff fight that amounted to a trade embargo between China and the United States has seen a marked increase in container shipping rates, particularly on trans-Pacific routes. The Freightos Baltic Index this past week saw Asia-U.S. West Coast rates fall 1% to $2,767 per forty-foot equivalent unit. While Asia-U.S. East Coast prices declined 6% to $3,979 per FEU, container rates on the Asia to North America route have again soared amid rising tensions between Washington and Beijing. This surge can be attributed to the looming deadline for a trade agreement, set for Aug. 14, and the potential for increased tariffs if negotiations falter. The anticipation of heightened tariffs has led to a rush among shippers to import goods before the deadline, consequently driving up rates sharply this week. General rate increases and peak season surcharges by carriers that went into effect June 1 saw prices to the West Coast spike by 72% to $4,765 per FEU, while East Coast prices climbed by 44%, reaching $5,721 per steep rise highlights the urgency among shippers to expedite deliveries, opting for shorter transit times amid uncertainty, said Freightos research chief Judah Levine, in a note. This urgency is further compounded by the strategic scheduling of additional capacity by carriers to the West Coast, aiming to accommodate the increased demand. Indeed, carriers have scheduled record capacity levels, extending through July, to cater to the augmented demand on this route. SONAR data for June 1-4 correlated the increases, as spot rates from Yantian to Los Angeles rose from $5,610 to $6,000 per FEU, while prices from Ningbo to LA moved from $5,151 to $5,431. Moreover, the swelling demand for trans-Pacific capacity has induced congestion at major Asian ports, including in China and Singapore. This congestion presents a bottleneck, testing the resiliency of supply chains. However, officials at the ports of Los Angeles and Long Beach have assured stakeholders that they are equipped to manage the increased cargo volumes without significant delays. On the Asia-Europe route, a similar trend in rising rates is observed, albeit driven by different for containers destined for Northern Europe have increased by $300, to $2,650 per FEU, while those bound for the Mediterranean saw a rise of about $600, reaching $3,575 per FEU. The fluctuations here are partially due to some carriers rerouting vessels to meet the heightened trans-Pacific demand, said Levine. That has inadvertently reduced capacity on the Asia-Europe routes. This shift has exerted upward pressure on prices, exacerbated by congestion at European ports. Despite the clear upward trajectory, market skepticism remains as to whether these increased rates are sustainable, given the relatively flat overall demand on these routes. Even so, the rates hold firm at double their 2019 levels, buoyed by constraints such as capacity limitations from Red Sea route diversions. Missile attacks on Israel by Houthi rebels in Yemen continue to make the Suez Canal route too unstable for most major container carriers. CMA CGM of France is the exception and recently announced additional scheduled services in the region. The American battle group led by the aircraft carrier USS Harry S. Truman recently exited the Red Sea after an intense month of bombing campaigns against Houthi targets. Find more articles by Stuart Chirls ports will hurt jobs, US maritime revival: AAPA Texas port completes $625M ship channel deepening project'Fear and uncertainty' driving up China-US container rates The post New week sees ocean container rates soar appeared first on FreightWaves.
Yahoo
13-05-2025
- Business
- Yahoo
Pause and effect: Container rates await new demand
While the United States and China exhale after the trading titans agreed to a 90-day pause in tariffs, it's not yet clear to what degree demand may rematerialize on the eastbound trans-Pacific, and how that could weigh on ocean container rates. The pause, which takes effect Wednesday, will see the U.S. knock down its reciprocal tariffs from 125% to 10% and, when combined with 20% tariff hikes aimed at blunting fentanyl from China, establish a new 30% baseline tariff on all Chinese imports. That also includes any tariffs that were in place prior to President Donald Trump's taking office for the second time. China's retaliatory tariffs on U.S. exports will fall into the basement, from 125% to 10%, while negotiations continue. This resulting 30% minimum tariff on all Chinese goods is higher than the highest tariffs applied to a more limited list of goods during the first Trump administration, said research head Judah Levine of shipping analyst Freightos, in a note. But Levine pointed to National Retail Federation U.S. ocean import data showing that even with a minimum 20% tariff on all Chinese goods in March, U.S. importers continued to frontload inventory ahead of the prospect of even higher tariffs. 'Volumes in March and April were 11% higher than in 2024 and featured one of the strongest Aprils on record, though some of that growth was from countries other than China, like Vietnam and Thailand.''The 145% tariffs drove a drop of 35% or more in China-U.S. ocean volumes since early April,' Levine said, 'so we're likely to see a significant demand rebound in the near term as shippers replenish inventories that may have started to run down in the past month, and as many Chinese manufacturers have high levels of finished goods already ready to ship.' Levine expects yet more frontloading ahead of the end of the pause in August as shippers hedge against the return of higher tariffs. That would mark the early start of this year's peak season when shippers bring in end-of-year holiday merchandise, which could end earlier than usual as well for the same reasons. While there has been some anecdotal evidence, the strength of the peak season is a matter of debate. Levine said the 30% tariff levels may deter some shippers, while earlier frontloading may have sated some peak season demand — and shrink those volumes compared to the same period a year ago. Despite the sharp drop in China-U.S. volumes since April, trans-Pacific container rates have remained level at about $2,300 per forty-foot equivalent unit to the West Coast and $3,400 per FEU to the East Coast, according to the Freightos Baltic Index, as carriers reduced capacity by an estimated 22% through blank sailings and service suspensions, and by deploying smaller vessels.'Carriers shifted some of that excess trans-pacific capacity and equipment to other lanes during the April-May pause, and the reduction in sailings over the last few weeks also means fewer empty containers than usual will be making their way back from the U.S. to China in the near term, said Levine. If demand snaps back, Levine said, shippers may face a period of tight capacity and equipment shortages as volumes rebound and vessels and containers are still being moved back into place. 'The quick restart could also mean a big bump in the number of vessels and container volumes arriving at U.S. ports in a few weeks. Taken together, shippers could face difficulty securing space and some congestion and delays in the next few weeks at both origins and U.S. destinations. Even if this is the start of peak season though, it's likely that this congestion will subside after the initial backlog and imbalances are cleared.' Levine said this should drive up near-term spot rates, though even with the Red Sea route shut down, rates are already more than 30% lower than a year ago due to fleet growth and increased competition between new carrier alliances. Peak season rates may not climb as high as in 2024, to $8,000 per FEU to the West Coast and more than $9,800 to the East Coast. Find more articles by Stuart Chirls here. Ocean lines welcome tariff pause, but is the supply chain ready? Less China means more business for Port of Virginia Maersk: US-China trade war will swing world container demand Maersk expects no changes from US port fees The post Pause and effect: Container rates await new demand appeared first on FreightWaves.
