- Flexport says the August deployment is steady at 80% with healthy space.
- Drewry reports small declines, expects less volatility post-tariff rush.
- USG–ARA activity muted as summer holidays reduce spot trading.
Shipping container rates from East Asia and China to the US have continued their downward trend this week, primarily due to an abundance of vessel capacity and a lack of demand, as the anticipated peak season has yet to show up, reports ICIS.
Industry View
“There are some blanks out there, but overall, they are just not having much of an impact on space needs,” said Kyle Beaulieu, senior director and head of ocean at freight forwarder Flexport. “So, space is healthy and available across the gateway.”
Market Trends
According to supply chain advisor Drewry, container rates have dropped by low-to-mid single digits compared to last week, while Freightos reported a 10% decrease for both US coasts. Drewry anticipates that the coming weeks will see less volatility now that the rush to beat tariffs has calmed down.
Outlook
Freightos’ Judah Levine pointed out that the subdued volumes are likely to stick around until the end of the year, with the next significant surge in demand not expected until just before the Lunar New Year 2026. The National Retail Federation forecasts that imports in the second half of the year will be down 8% compared to the first half, and 14% lower than last year.
Chemical Industry Relevance
Container shipping plays a crucial role in the chemical industry, as materials like polyethene (PE) and polypropylene (PP) are shipped in pellet form, along with other products such as titanium dioxide (TiO2) and liquid chemicals in ISO tanks.
Liquid Tanker Rates Mixed
This week, US chemical tanker freight rates showed a mixed bag. Transpacific routes experienced slight increases due to a rise in inquiries, while routes from the US Gulf to ARA and Brazil remained stable. However, trade from the US Gulf to India is still sluggish, as participants are wary of potential tariffs, with most activity focused on ethanol, vegetable oil, and acetic acid.
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Source: ICIS
