Freightos Baltic: Transpacific spikes on extended US demand while Asia-Europe slides

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Container spot rates on Transpacific routes diverged sharply from broader market weakness this week, as unexpected US demand resilience and extended tariff frontloading propelled Asia-US West Coast rates up 11% to $6,826/FEU.

Daily spot prices on the West Coast have climbed $1,300/FEU since the start of the month to reach $7,400/FEU. Asia-US East Coast rates edged up 1% to $9,144/FEU, charting new daily highs near $9,400/FEU. Shippers continued to maintain elevated volumes after a sharp US duty hike failed to materialise, prompting importers to revise cargo volume forecasts upward through September in response to sustained consumer spending.

In contrast, Asia-Europe trades accelerated their post-peak seasonal correction. Spot rates to Northern Europe and the Mediterranean fell 8% and 7% week-on-week to $5,085/FEU and $6,067/FEU, respectively—marking a cumulative decline of roughly 15%, or $1,000/FEU, from their early July peaks. Carriers have responded by expanding blanked sailings for August and cancelling planned mid-month rate hikes to cushion the structural slide.

Macro geopolitical tailwinds returned as hopes of reopening the Strait of Hormuz vanished following maximalist diplomatic demands from Tehran. Demands for US vessel bans, transit fees, and damage reparations have re-established wartime risk premiums and high baseline operating costs. Furthermore, supply chain disruptions expanded as Iranian proxies extended strikes to the Bab el-Mandeb Strait and Saudi ports.

Despite this, downside price pressure across all outbound Asia routes remains constrained by persistent operational congestion at Far East hubs and restricted draft levels on the Rhine.

Written by: Aiman Haikal