- Transpacific ocean freight volumes have surged due to a 90-day U.S.-China tariff truce
- Shipping rates are expected to rise amid tight capacity but may stay below last year’s peak.
- U.S.-EU trade tensions escalate with proposed tariffs on EU goods and foreign-made smartphones.
Following the 90-day tariff truce between the U.S. and China announced on May 12, 2025, there has been a significant increase in Transpacific ocean freight volumes. This surge is attributed to businesses rushing to ship goods before the potential reinstatement of tariffs in August, reports AJOT.
The backlog of shipments paused in April and the urgency to move goods ahead of the August deadline are contributing factors to this increase.
Impact on Shipping Rates and Port Operations
The sudden spike in shipping demand has led to tighter capacity and potential equipment shortages, as logistics hubs and ports strive to manage the influx. While container rates are expected to rise, they may still remain below last year’s peak season rates due to fleet growth and increased competition among carrier alliances.
Escalating US-EU Trade Tensions
Amid the Transpacific shipping surge, U.S.-EU trade relations are under strain. President Donald Trump has threatened to impose a 50% tariff on European Union goods and a 25% levy on foreign-made smartphones, including those by Apple and Samsung. These announcements have contributed to declines in major U.S. stock indexes and have raised concerns about potential inflation and supply chain disruptions.
Ocean rates – Freightos Baltic Index:
- Asia-US West Coast prices (FBX01 Weekly) increased 13% to $2,788/FEU.
- Asia-US East Coast prices (FBX03 Weekly) increased 20% to $4,223/FEU.
- Asia-N. Europe prices (FBX11 Weekly) fell 4% to $2,351/FEU.
- Asia-Mediterranean prices (FBX13 Weekly) stayed level at $2,985/FEU.
Air rates – Freightos Air index
- China – N. America weekly prices fell 7% to $5.14/kg.
- China – N. Europe weekly prices increased 6% to $3.73/kg.
- N. Europe – N. America weekly prices fell 1% to $1.87/kg.
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Source: AJOT
