- Container shipping rates from East Asia and China to the U.S. continue to decline, with West Coast rates nearing pre-Red Sea crisis levels, reflecting weak peak season demand and ample capacity.
- The Shanghai Containerized Freight Index (SCFI) rate to the U.S. West Coast has fallen 69% since June, while Freightos and Drewry both report rates approaching November 2023 levels.
- U.S. chemical tanker freight rates were steady to lower this week, with muted demand and limited spot activity weighing on transatlantic and Asian routes, while the U.S.–Brazil trade lane remains relatively firm due to tight supply.
Container freight rates from East Asia and China to the U.S. continued their downward trajectory this week, with costs on the transpacific route to the U.S. West Coast edging close to levels last seen before carriers began rerouting around the Red Sea. The rerouting, prompted by Houthi attacks in November 2023, initially forced vessels to sail the longer route around the Cape of Good Hope, which tightened capacity and pushed rates sharply higher. According to Drewry, rates to the West Coast fell 3% this week and now sit only about $75 per FEU above November 2023 levels. Freightos reported a sharper 8% weekly decline, with rates now roughly $140 per FEU higher than before the crisis. Judah Levine, head of research at Freightos, noted that daily rates are essentially back to early Red Sea crisis levels.
Market Dynamics and Forecasts
The drop in rates reflects a sluggish transpacific peak season as many U.S. retailers pulled forward imports to hedge against tariffs, leaving current demand weaker. Ample vessel capacity persists despite carriers’ efforts to curb supply through blank sailings and other measures. The SCFI Shanghai–U.S. West Coast rate declined 4% week on week to $1,759 per FEU and is now down 69% since June 1. Drewry forecasts that while rate volatility should ease in the coming weeks, the overall trend points to further declines in the second half of 2025 as supply continues to outpace demand. For the chemical industry, these developments are significant since containerized trade covers key commodities such as polymers, titanium dioxide, and chemicals moved in isotanks.
Chemical Tanker Rates
Meanwhile, U.S. chemical tanker freight rates assessed by ICIS were steady to lower across most major trade lanes. On the transatlantic route, rates edged lower on the high side amid limited activity, though a tight position list helped keep overall pricing firm. Several styrene and methanol cargoes were quoted into Northwest Europe, but only a handful of fixtures materialized. On the U.S. Gulf–Asia trade lane, downward pressure persists as charterers remain cautious and spot demand remains weak. Contract-of-affreightment volumes continue to move, but only methanol shipments from Venezuela’s Jose terminal to China were actively noted.
Regional Trade Lane Activity
The U.S. Gulf–Brazil trade lane has been unusually quiet, though rates have steadied as limited prompt availability has kept owners from lowering prices further. In contrast, the U.S. Gulf–India route has softened, with no confirmed fixtures and only one fresh inquiry for September. Across most regions, sentiment points to softer freight conditions, with shipowners balancing weak demand against constrained vessel availability to prevent deeper rate declines.
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Source: ICIS
