Freight Rates on US West Coast Route Plunge, Down Over 20% Month-on-Month!

Sourcing: Shipping Gazette 2025/06/17

After three consecutive weeks of significant increases, freight rates on the US trade lanes have retreated.

According to the Shanghai Containerized Freight Index (SCFI) released by the Shanghai Shipping Exchange, on June 13th, the market freight rates (including ocean freight and surcharges) from Shanghai Port to the basic ports on the US West Coast and US East Coast were $4,120 per FEU and $6,745 per FEU, respectively. This represents a decrease of 26.5% and 2.8% compared to the previous week.

On June 6th, the rates to the US West Coast and US East Coast were $5,606 per FEU and $6,939 per FEU, respectively. Compared to the rates two weeks prior, these figures represented substantial increases of 71.2% and 62.0%.

Analysts from the Shanghai Shipping Exchange explained that although recent transport demand on the US routes has been stable, the continuous increase in shipping capacity supply has alleviated the previously tight container space situation. Consequently, spot market booking prices have retreated from their recent highs. The impact of new capacity on the US East Coast route was smaller, hence the smaller decline in market rates there.

Additionally, data released by the US Department of Labor showed that for the week ending June 7th, initial jobless claims in the US rose to 248,000, exceeding market expectations and the previous week's figure. Simultaneously, continuing claims reached their highest level since the end of 2021, indicating a continued slowdown in the US labor market. This poses challenges for future US economic growth.

On June 9th and 10th local time, the inaugural meeting of the China-US economic and trade consultation mechanism was held in London, UK. Following the conclusion of the meeting on June 10th, Li Chenggang, China's International Trade Representative and Vice Minister of Commerce, briefed the media on the discussions.

Li stated that the two sides engaged in professional, rational, in-depth, and candid communication. They reached a framework agreement in principle on implementing the consensus reached by the leaders of the two countries in their June 5th phone call and the previous Geneva talks. The progress made in the London talks is conducive to further enhancing trust between China and the US, promoting the stable and healthy development of bilateral economic and trade relations, and injecting positive momentum into the global economy.

After the London talks, officials from both sides indicated they had reached a "framework agreement" to ease economic tensions and would extend the trade truce established in May. This helps secure transport demand on the US routes for the foreseeable future.

However, the unpredictable nature of former President Trump's tariff policies remains the biggest variable in China-US trade.

The latest development is the US Department of Commerce's announcement that it will impose additional tariffs on various steel household appliances, including dishwashers, washing machines, and refrigerators ("steel derivative products"), effective June 23rd. It's reported that the US has set a 50% tariff rate for most countries. This could lead to price increases for these goods, potentially dampening demand. The outlook for the US route market remains uncertain.

Disclaimer: This message has been reprinted from other media, and its publication is for the purpose of conveying more information, and does not imply agreement with its views or confirmation of its description. The content of the article is for reference only and does not constitute any suggestions.