Xeneta: Container Rates drop dramatically on Transpacific trade
OSLO : Market average on the Transpacific trade from Far East to US West Coast has fallen dramatically since the spike on 1 June. Declining spot rates this week has all but evaporated the spike. At USD 3317 per FEU on 27 June, rates are only 6% higher when compared to 31 May. This trade lane is the foremost impacted by the US-China trade war. Clearly, capacity is now more than meeting demand and the shippers who are realizing that are pushing back on ‘peak season surcharge’.
Market average on the trade from Far East to US East Coast has fallen 9% since 1 June to USD 5 990 per FEU. The spot rate is holding up to a large extend into the US East Coast, standing 43% higher on 27 June than on 31 May.
Market average spot rates – 27 June 2025:
- Far East to US West Coast: USD 3317 per FEU (40ft container)
- Far East to US East Coast: USD 5990 per FEU
- Far East to North Europe: USD 2852 per FEU
- Far East to Mediterranean: USD 4440 per FEU
- North Europe to US East Coast: USD 2105 per FEU
The average spot rates from Far East into the Mediterranean and North Europe, which jumped in early and mid-June, remain elevated. On 27 June, they are 5% and 14% higher respectively compared to 1 June.
Market average has stayed flat on the trade from North Europe to US East Coast from a week ago to stand at USD 2105 per FEU. This trade is up just 3% from 31 May. Ongoing negotiations between the European Commission and the US administration has entered a new stage, with parties seeking an agreement before 9 July at the expiry of the 90-day pause on higher tariffs.
The latest average spot rate data is provided above in the ‘Xeneta – weekly market update 27.06.25’ and ‘Xeneta – weekly market update chart 27.06.25’.
Peter Sand, Xeneta Chief Analyst said, “Average spot rates have plummeted from Far East to US West Coast, down 39% since 1 June, but it has not been so dramatic into the US East Coast with rates holding up stronger – for now.
“The differing developments across these Far East fronthaul trades means the spread between US East Coast and US West Coast is the highest for 10 months at USD 2673.
“The Transpacific into US West Coast is the key battleground for carriers when it comes to China exports, so spot rates have fallen harder and faster as they prioritized bringing capacity back onto this trade in the immediate aftermath of the lowering of 145% tariffs.
“Shippers are seeing how this game is playing out and are calling the carriers’ bluff by pushing back on the higher rates and peak season surcharges. It is only a matter of time until shippers do the same into the US East Coast and spot rates begin to fall sharply there too.”
Source: Xeneta