XENETA WEEKLY OCEAN CONTAINER SHIPPING MARKET UPDATE - 18.07.25

• Market average spot rates – 18 July 2025:
  • Far East to US West Coast: USD 2313 per FEU (40ft container)
  • Far East to US East Coast: USD 4314 per FEU
  • Far East to North Europe: USD 3410 per FEU
  • Far East to Mediterranean: USD 3853 per FEU
  • North Europe to US East Coast: USD 2011 per FEU

• Market average on the Transpacific trade from Far East to US West Coast remained flat in mid-July, halting a decline of 28% between 30 June and 4 July.
  
  
• Market average from Far East to US East Coast has fallen 7% since 14 July to stand at USD 4 314 per FEU. This means spot rates on this trade are down 26% since 30 June.
  
  
• Average spot rate is now down 58% into the US West Coast since the peak on 1 June. Into the US East Coast, spot rates are down 35% in the same period.
  
  
• Bigger declines into the US West Coast means the spread between these trades stands at USD 2 000, compared to USD 1155 on 1 June.
  
  
• Average spot rates from Far East to North Europe are up 18% since the end of June and 78% since the end of May to stand at USD 3410 per FEU, driven primarily by congestion in North Europe ports.
  
  
• Factors behind port congestion in North Europe include the high capacity that was added to this trade in late April and early May now arriving at the ports, strikes and other labor disruptions affecting port operations and low water levels in the Rhine causing problems for barges and hinterland transport.
  
  
• Far East to Mediterranean has fallen 15% since 15 June, following the US markets rather than North Europe.

Xeneta analyst insight

Emily Stausbøll, Xeneta Senior Shipping Analyst:

“Sentiment has turned and rates are falling despite the higher US-China tariffs still being on hold and the deadline for the rest of the world extended into August.

“Shippers can’t frontload forever, no matter what happens with the tariffs, so the longer term direction for rates was always going to be downward.

“Carriers reducing capacity on Transpacific trades has now eased the declines into the US West Coast and East Coast, but they are facing an almighty battle to stop them falling further in the remainder of 2025.

“The downward pressure on rates is a global phenomenon, because ships being removed from Transpacific to stop the decline in rates are being added to other trades such as Far East to South America East Coast where spot rates had increased 260% since 1 May. As more capacity is added to this trade, spot rates now appear to have peaked.

"This is an ebb and flow of capacity across global supply chains as carriers seek out the higher rates, but by adding this capacity they risk ruining the party for themselves on the more profitable trades. "

Ends

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