- Far East–US West Coast spot rates fall to just above USD 2000/FEU, the lowest since late 2023.
- US East Coast and Mediterranean trades register sharp rate declines as capacity rises.
- 90-day US–China tariff pause reduces demand volatility but pressures rates downward.
Market Overview
As of August 13, 2025, average spot rates show notable declines across major east–west container trades:
- Far East–US West Coast: USD 2018/FEU, down 6% since end-July, marking the lowest level since the Red Sea crisis escalation in late 2023.
- Far East–US East Coast: USD 3174/FEU, down 12.8% (USD 464/FEU) since end-July, the second-steepest drop among major fronthauls after South America.
- Far East–North Europe: USD 3247/FEU.
- Far East–Mediterranean: USD 3337/FEU, down 8.2% since July 31.
- North Europe–US East Coast: USD 1941/FEU.
Drivers Behind Rate Movements
The decline in June was steep, but rate erosion since late July has slowed due to more effective carrier capacity management and the absence of tariff-driven demand surges. The US and China’s extension of current tariff levels by another 90 days—through early November—has temporarily stabilized the market, avoiding the kind of “stop-and-go” volatility seen earlier in the year.
Trade Lane Analysis
- US East Coast: Rates have experienced one of the largest drops, rivaled only by South America, as added capacity continues to outpace demand.
- Mediterranean: Rate declines may deepen if carriers increase offered capacity next week without a corresponding demand rise.
- North Europe & Mediterranean (Far East origins): Expected capacity hikes could put further downward pressure on spot rates in the coming weeks.
Analyst Insight
Peter Sand, Xeneta’s Chief Analyst, notes that shippers already took advantage of the first tariff-reprieve period in May to frontload goods, eliminating any pent-up demand. With capacity growth continuing on both US-bound and Europe-bound routes, carriers face sustained pricing pressure, and further rate declines are likely unless demand unexpectedly strengthens.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Xeneta
