Container shipping rates continue to fall as demand weakens following a period of frontloading by shippers ahead of potential tariff hikes, according to a report. Average rates on the Far East to U.S. West Coast trade dropped to just over $2,000 per forty-foot equivalent unit (FEU) for the week ending August 13, the lowest level since late 2023, according to Xeneta.
Read also: U.S. Container Imports Near Record High as Tariff Deadlines Drive Surge
Far East to U.S. East Coast rates fell to $3,174 per FEU, down from $3,311 the previous week, while North Europe to U.S. East Coast rates declined to $1,941 per FEU from $2,015. Data from the IndexBox platform shows that Far East to U.S. East Coast rates have decreased by 12.8% since late July, with South America experiencing an even sharper drop of 18.3%.
Xeneta noted that carrier capacity management and reduced tariff uncertainty helped slow the overall rate decline to 6% in July, following a steep 53% drop in June. The Trump administration recently extended the pause on higher tariffs for Chinese imports by another 90 days, eliminating the urgency for shippers to accelerate shipments. “Shippers have already frontloaded goods during the initial tariff window, so spot rates are expected to decline further,” said Xeneta Chief Analyst Peter Sand.
Rates on Far East to North Europe routes fell to $3,247 per FEU, while Far East to Mediterranean rates slid to $3,337. Increased vessel capacity in these and other trade lanes is expected to push rates even lower in the coming weeks unless demand rebounds.