Average spot freight rates for shipping containers from the Far East to both the US West Coast and the US East Coast have remained stable since mid-April 2025. The rate to the US West Coast is holding at USD 2790 per FEU (forty-foot equivalent unit), while the rate to the US East Coast is steady at USD 3830 per FEU, reports Xeneta.
Far East to the US
Peter Sand, Chief Analyst at Xeneta, provides insights into the recent trends in container shipping, particularly concerning the impact of tariffs and carrier responses:
- Carrier Response to Tariffs: Sand notes that in response to the US government’s reciprocal tariff announcements at the beginning of April, carriers reacted by increasing blanked sailings (canceled voyages) from China. This strategy mirrors their successful approach during the early stages of the COVID-19 pandemic to manage capacity.
- Impact on Spot Rates (Far East to US): These blanked sailings, combined with some indications of a demand recovery out of China in the latter half of April, have been sufficient to keep spot rates on trades from the Far East to the US relatively flat.
- Previous Rate Decline: It’s important to note that prior to this uptick in early April, spot rates had been on a declining trend since the beginning of the year.
- Future Outlook and Consumer Demand: Sand suggests that the current flat spot market is likely a temporary situation. He cautions that if higher prices of goods lead to subdued US consumer demand in the second quarter, and this subsequently impacts container shipping volumes out of Asia, carriers will face a significant challenge in maintaining elevated freight rates.
Far East to Europe
Peter Sand, Xeneta Chief Analyst, highlights the significant decline in spot rates on the Far East to North Europe trade lane:
- Lowest Rates Since Late 2023: Average spot rates from the Far East to North Europe have fallen to their lowest point since the end of December 2023. This is a notable observation as this period coincided with the initial impact of the Red Sea crisis on the shipping market.
- Recent Sharp Decline: The most recent decline, occurring on May 1st, was just under 8%, indicating a clear imbalance between the available shipping capacity and the current demand on this particular trade route.
- Potential Impact of US Tariffs: Sand suggests a possible factor contributing to this shift: shippers might be diverting some goods to Europe instead of the US due to the recently imposed tariffs on Chinese goods entering the United States.
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Source: Xeneta
