Freightos Baltic: Asia–US freight rates tumbled as tariff fallout disrupted trade flows

Freight rates from Asia to the US began to decline this week, as the fallout from escalating US–China trade tensions materialised. The key factor was a marked drop in demand for US-bound shipments from China amid a wave of order cancellations.

Rates on major transpacific lanes responded accordingly. Prices to both the US West and East Coasts tumbled by 5%, ending up to three consecutive weeks of firmness.

The softening was largely attributed to the sharp rise in landed costs for China-origin goods, which are now subject to tariffs as high as 145%. Faced with the spike, many US importers have opted to suspend fresh shipments and instead rely on inventories amassed during earlier rounds of frontloading.

In contrast, rates from Asia to the Mediterranean and Northern Europe remained stable to slightly firmer. Prices to the latter destination found support as cargoes originally intended for the US market were rerouted toward Europe. This prompted market participants to closely monitor for any sign of congestion.

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