Freightos Baltic: Asia – US West Coast rates fell to 20-month lows amid waning demand

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Spot container freight rates on the main east–west trades continued to decline last week, with transpacific benchmarks recording the steepest drops as front-loaded demand eased and capacity growth weighed on the market.

According to Freightos data, Asia–US West Coast spot prices fell 10% to $1,744/FEU, the lowest level since December 2023. East Coast benchmarks declined 21% to $2,733/FEU, taking August’s cumulative fall to 34%. The correction follows an early peak season in July, when many shippers accelerated cargoes to avoid the expected expiry of tariff relief measures.

Although Washington announced a 90-day extension of the 30% baseline tariffs on Chinese exports, the move has not translated into a significant recovery in demand. The pull-forward of shipments earlier in the summer left August volumes comparatively subdued, contributing to continued downward pressure on rates.

On the Asia–Europe corridor, spot prices also eased. Rates to North Europe fell 6% to $3,071/FEU, while Mediterranean benchmarks edged down 1% to $3,091/FEU. Both trades are now at their weakest levels since late spring, with spot prices remaining around 60% lower year on year. Despite ongoing Red Sea diversions and congestion at European ports, carriers have struggled to sustain higher rate levels against ample vessel availability.

At the policy level, several developments could influence trade flows in the months ahead. Sector-specific tariff probes into pharmaceuticals, semiconductors, and furniture are nearing completion and may lead to additional measures. Meanwhile, the full implementation of tariff reductions under existing trade agreements is still pending, limiting immediate effects on volumes.

Written: Aiman Haikal