Feature, Freight News, Logistics, Sea

Transpacific Rates Continue to Slide, Xeneta

[ August 1, 2025   //   Gary Burrows ]

Market average spot rates from the Far East to U.S. West Coast increased 10 percent by mid-month but steadily declined to US$2,264 per 40-foot equivalent units (or FEUs), said Xeneta, the freight rate benchmarking and market analytics platform.

Average spot rates from Far East to U.S. West Coast are now down 59 percent since the market peak on June 5 and are expected to fall further at the beginning of August, sliding towards US$2,000 per FEU, Xeneta said.

Market average from Far East to U.S. East Coast has fallen 46 percent since the peak on June 15 to stand at US$3,775 per FEU. Looking ahead to August and spot rates are expected to drop below US$3,500 per FEU.

Average spot rates on both trades from Far East to U.S. East and West coasts are at the lowest level since December 2023, with U.S. West Coast in particular closing in on pre-Red Sea Crisis levels.

“Average spot rates on the major front-hauls from the Far East to U.S. have been falling hard and are now at the lowest level since December 2023,” said Emily Stausbøll, Xeneta’s senior shipping analyst. “With further decreases expected in August, freight rates are now closing in on pre-Red Sea crisis levels, especially into the U.S. West Coast.

Though President Trump has announced striking multiple trade deals, “this is unlikely to spark a cargo rush in the remainder of 2025 and prevent further softening of rates,” Stausbøll said. “Carriers are trying to manage capacity, but they may be fighting a losing battle and have no choice but to accept lower freight rates.

“If the forecast for the remainder of 2025 is challenging for carriers, it will also be tough for shippers. They may benefit from falling freight rates, but this will not come close to offsetting the financial impact of tariffs,” she said.

Average spot rates from Far East to North Europe have flattened at US$3,358 per FEU after increasing 78 percent from May 30 to July 1. Average spot rates from Far East to Mediterranean spot rates have declined 11 percent since July 1 to stand at US$3,662 per FEU.

For August, average spot rates to North Europe are expected to hold strong while rates into the Mediterranean will move down toward US$3,400 per FEU. This means the spread between these trades will be closing in on parity in August, Xeneta said.

Tags: Emily Stausbøll, Xeneta