Freightos Baltic: Spot rates spiked due to escalating front-loading activities

Global ocean freight markets are once again navigating stormy waters, with a dramatic surge in transpacific container rates underscoring the volatility sparked by geopolitical tensions and legal uncertainties.

The latest disruption originates from a ruling by the US Court of International Trade, which determined last week that President Donald Trump had improperly invoked the International Emergency Economic Powers Act (IEEPA) to justify the imposition of reciprocal tariffs on multiple trading partners. While the court’s decision represents a legal blow to the administration’s trade strategy, many in the logistics industry believe Washington retains alternative mechanisms to reimpose similar measures if it chooses to do so.

US–China trade relations, which had shown signs of improvement following a rollback of select tariffs on 14 May, are once again deteriorating. With a 14 August deadline looming to finalise a bilateral trade agreement, uncertainty is driving a wave of frontloading as importers expedite shipments in anticipation of further tariff escalation.

This rush to beat potential cost increases has triggered a surge in transpacific freight rates. According to Freightos data, spot rates from Asia to the US West Coast soared 72% over the past weeks to $4,765/FEU, while rates to the East Coast climbed 44% to $5,721/FEU. Carriers have already announced further general rate increases (GRIs) set to take effect in mid-June, reinforcing expectations of continued upward pressure on prices.

Meanwhile, carriers are attempting to lift Asia–Europe container rates through early June GRIs. Yet industry sentiment remains cautious, with many players sceptical that these price hikes will hold amid persistently flat demand on the route.

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