Global container freight rates are currently experiencing a notable decline, as indicated by the latest figures from the Freightos Baltic Index (FBX).
Trans-Pacific Routes See Sharpest Declines
The most dramatic shifts occurred on the trans-Pacific lanes, which had seen a rapid ascent in rates earlier in June due to factors like potential tariff impacts and early peak season frontloading.
- Asia–North America West Coast (FBX01): Rates plunged by 39% to US$3,389 per FEU (40-foot equivalent unit). This route had previously surged by 115% from the end of May to peak at around US$6,000 per FEU in mid-June. The current rate represents a 43% fall from that mid-June high, though it still remains 22% above May-end levels. As of July 3, 2025, rates from Shanghai to Los Angeles further decreased by 15% to $3,180 per 40ft container in the past week, but are still up 17% compared to eight weeks ago.
- Asia–North America East Coast (FBX03): Rates dropped by 15% to US$6,119 per FEU. Similar to the West Coast, rates had climbed to approximately US$7,200 per FEU before retreating. As of July 3, 2025, rates from Shanghai to New York dropped 11% this past week to $5,070 per 40ft container, but gained 39% over the last eight weeks.
This rapid cooling on the trans-Pacific lanes indicates that while there was a significant spike, capacity is now more adequately meeting demand, and shippers are pushing back on “peak season surcharges.” The difference in rates between the US East Coast and West Coast is currently the highest it has been in 10 months, at $2,673 per FEU, reflecting varying supply-demand dynamics and carrier strategies.
Asia-Europe Routes Hold Firmer
In contrast to the steep declines on trans-Pacific routes, rates for Asia-Europe and Asia-Mediterranean lanes demonstrated more resilience.
- Asia–North Europe (FBX11): Rates saw a modest decrease of 4% to US$2,969 per FEU. Despite this slight dip, rates for Asia-Europe and Asia-Mediterranean closed June up 25% compared to May-end levels. As of July 3, 2025, rates from Shanghai to Rotterdam increased 8% to $3,468 per 40ft container. Spot rates from China to Northern Europe surged to $2,020 per 20ft container (equivalent to $4,040 per FEU) in late June, driven by seasonal demand and heavy port congestion.
- Asia–Mediterranean (FBX13): Rates experienced a minor decline of 5% to US$4,223 per FEU. However, rates from Shanghai to Genoa decreased 9% to $3,751 per 40ft container as of July 3, 2025.
The firmer rates on these routes, despite global overcapacity, are likely still being influenced by Red Sea reroutings, which continue to absorb significant vessel capacity, leading to longer transit times and persistent congestion at some European hubs. However, analysts expect spot rates to decline later in 2025 as new vessels enter the market and demand softens.
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Source: Container News
