Transpac container charges slide again to pre-Pink Sea ranges – August 20, 2025 Replace

Weekly highlights

• Asia-US West Coast costs (FBX01 Weekly) fell 8% to $1,940/FEU.
• Asia-US East Coast costs (FBX03 Weekly) fell 3% to $3,472/FEU.
• Asia-N. Europe costs (FBX11 Weekly) fell 2% to $3,273/FEU.
• Asia-Mediterranean costs (FBX13 Weekly) fell 1% to $3,113/FEU.

• China – N. America weekly costs elevated 5% to $5.44/kg.
• China – N. Europe weekly costs fell 4% to $3.53/kg.
• N. Europe – N. America weekly costs fell 2% to $1.73/kg.

Evaluation

When the US lowered baseline tariffs on Chinese language exports from 145% to 30% in Might for a interval of ninety days, transpacific ocean freight demand surged and container charges soared to greater than $6,000/FEU to the West Coast as shippers rushed to maneuver items that might make it to the US earlier than the August expiration date. 

A latest Freightos ballot of about eighty provide chain professionals discovered that about half count on the White Home’s latest announcement that it’s going to lengthen that 30% baseline tariff for a further ninety days to result in one other peak season bump. However the different half thinks, even with the extension, this 12 months’s peak season is behind us – and to date container charges appear to help these expectations.

Transpacific charges to the West Coast fell 8% final week to lower than $2,000/FEU, their lowest stage because the begin of the Pink Sea disaster. Day by day charges to date this week are all the way down to the $1,700/FEU stage held simply earlier than the Houthi assaults started in late 2023. Costs to the East Coast fell 3% to $3,472/FEU final week, however are all the way down to $2,700/FEU to date this week, additionally inside hanging distance of their pre-Pink Sea ranges.

Container charges on the transpacific are falling resulting from tariff-driven frontloading that noticed stronger than regular volumes earlier within the 12 months and introduced a short and early peak season surge again in June. However charges falling again to ranges final seen earlier than the Pink Sea disaster started – at the same time as assaults proceed – recommend that overcapacity can also be taking part in a job in price habits. 

Spot market developments for Asia – Europe commerce can also help the chance that overcapacity is already impacting charges. 

Carriers report that Asia – Europe peak season demand is powerful. However even with sturdy volumes, persistent congestion at a number of main European container hubs, and Pink Sea diversions nonetheless absorbing capability immediately on this lane, container charges are 60% decrease than a 12 months in the past, when the Pink Sea disaster was cited as the most important driver for extremely elevated charges of about $7,000/FEU to Europe and $8,000/FEU to the Mediterranean. 

As of final week, Asia – N. Europe charges had been nonetheless flat at about $3,300/FEU, the height season stage they’ve held since early July. Asia – Mediterranean costs slipped to about $3,100/FEU down from a peak season excessive of $4,800/FEU reached in mid-June. Carriers will cut back capability on these lanes in September to attempt to hold costs from easing additional. 

In air cargo, an Air Canada flight attendant strike that began over the weekend froze passenger operations and disrupted cargo flows as properly. A tentative settlement between the service and union reached late Monday nonetheless, means operations are already step by step beginning again up. 

Freightos Air Index price information exhibits air cargo costs had been secure general final week, with China – US charges up barely to $5.44/kg, China – Europe costs dipping 4% to $3.53/kg and transatlantic charges down 2% to $1.73/kg.