NEWS & BLOG
Views: 0 Author: Site Editor Publish Time: 2025-08-01 Origin: Site
| Route | Current Rate | Drop Since June | Drop Since Jan 2025 |
|---|---|---|---|
| China → US West Coast | $2,268/FEU | -59% | -68% |
| China → US East Coast | $3,796/FEU | -43% | -52% |
| North Europe → US East | $2,000/FEU | -5% | -25% |
Source: Xeneta, August 2025.
Post-Tariff Demand Collapse
US importers frontloaded shipments in April-May after temporary tariff relief, leaving Q3 demand "like a deflated balloon".
China-US West Coast volumes down 10-20% weekly since June.
Overcapacity Crisis
Carriers have canceled 175,000 TEU on Trans-Pacific routes (11% of capacity) but newbuilds due by 2028 worsen glut.
Net fleet growth outpaced demand by 7.9% in 2023, 10% in 2024.
Tariff Uncertainty
15% EU tariffs (effective Aug 1) and potential 55% China rates deter restocking.
"No trade deal can reverse April’s reciprocal tariff shock," says Xeneta.
Blank Sailings: 2M Alliance suspends Asia-Europe routes; MSC/Maersk scrap August rate hikes.
Cost Cutting: DB Cargo slashes 8,000 jobs as rail freight demand plummets.
Long-Term Pain: Industry faces "deep cyclical downturn" until 2030 due to overordering.
Q4 Outlook: Rates may hit carrier break-even ($1,700/FEU) without peak season rebound.
Geopolitical Wildcards:
US "shipment interception" rules could further disrupt transshipments.
Red Sea diversions ending in 2026 may flood market with excess capacity.
Quote:
"This isn’t a normal slump—it’s a tariff hangover meeting an overcapacity tsunami." — Xeneta analyst.
