- Container shipping rates from Asia to the US have dropped further due to low demand and increased vessel capacity.
- Drewry and Freightos report significant week-on-week declines, especially on routes to Los Angeles and New York.
- The temporary boost from US tariff reductions is fading, while overcapacity continues to pressure rates.
- Chemical shippers are affected as container vessels carry polymers, titanium dioxide, and isotank liquids.
Container shipping rates from East Asia and China to the US have continued their downward trend this week, driven by softening demand and increased vessel capacity. Global average rates dropped nearly 6%, settling just below $3,000 per 40-foot equivalent unit (FEU) — marking the lowest level in about four months, as noted by supply chain advisors Drewry, according to ICIS.
Transpacific Container Rates Continue to Decline Amid Weak Demand
Container shipping rates from Shanghai to the US continue to fall sharply, reflecting weak demand and growing vessel capacity. According to Drewry, rates from Shanghai to Los Angeles dropped 15% week over week, while those to New York declined by 11%. This drop is largely attributed to reduced US-bound cargo demand, suggesting that the recent rebound in imports following the temporary suspension of higher US tariffs may not have a lasting impact.
Drewry anticipates that spot rates will keep falling in the coming week, citing excess capacity and subdued demand. Looking ahead to the second half of the year, the firm projects a continued softening in rates. However, the extent and pace of these changes remain uncertain, depending on potential future tariffs from the US and any related restrictions on Chinese vessels.
Freightos, an online freight platform, also reported significant rate declines to both US coasts. Judah Levine, head of research at Freightos, noted that the 12 May US tariff rollback on Chinese goods briefly boosted container volumes, but this momentum now appears to be fading. He added that carriers, likely anticipating sustained demand, have increased transpacific capacity—particularly to the West Coast—more than necessary.
Despite June’s brief spike in rates, both east and westbound lanes peaked at least $1,000/FEU below last year’s figures. This trend could indicate broader capacity expansion across the container shipping sector.
Container shipping remains critical to the chemical industry, particularly for transporting solid polymers like polyethylene (PE) and polypropylene (PP), as well as titanium dioxide (TiO₂). Liquid chemicals are also moved via containers using isotanks.
Maersk Reports Average 21% Tariff on US Container Imports Amid Rising Trade Barriers
Container shipping company Maersk reports that US importers are currently paying an average effective tariff rate of around 21% on all containerized imports. This figure is based on Maersk’s container-weighted tariff metric and reflects ongoing trade policy uncertainty since the US formally introduced its latest tariff package on 2 April.
In its market update, Maersk noted that visibility in global trade has declined while barriers have increased, making long-term planning more difficult for shippers and importers. Although current tariff levels are well below the 54% peak seen shortly after the early April announcement, they remain elevated and are influencing shipping costs and decisions.
Maersk added that most country-specific import tariffs are currently on hold as negotiations for long-term trade agreements continue, with key decision deadlines expected in July and August.
Transatlantic Liquid Tanker Rates Slip Amid Weak Spot Activity
Liquid chemical tanker rates from the US Gulf remained mostly unchanged this week, with the exception of declines on the US Gulf to Europe route. This trade lane continues to rely heavily on steady contract volumes, and most regular carriers were able to absorb any spare capacity. Spot activity remained limited, with few discussions in the market and minimal demand. Spot cargoes primarily included diethylene glycol (DEG), styrene, and caustic soda.
On the US Gulf to Asia route, spot rates for smaller parcels remained under pressure, while larger parcel rates held steady. The uncertainty surrounding tariffs continues to affect market sentiment, leading to softer conditions overall. Spot movements of monoethylene glycol (MEG) and ethanol were noted for July and early August. Shipowners are currently awaiting final contract nominations, and any delay could increase available space and lead to further rate declines.
Rates on the US Gulf to Brazil route held firm week over week. Spot activity was stable, with only a limited number of new requirements. Although there was a slight increase in inquiries, it wasn’t sufficient to affect pricing. Ethanol and caustic soda remained the most discussed cargoes. Some traders reported interest in a one-year contract of affreightment (COA) starting in September for easy chemicals, with volumes of around 5,000 tonnes per month.
Meanwhile, bunker fuel prices continue to stay elevated, driven by high energy costs and ongoing geopolitical instability in the Middle East, contributing to rate considerations across the board.
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Source: ICIS
