A rapid infusion of capacity into the trans-Pacific combined with slowing volumes abruptly ended a brief period of tightness following the re-start of China-to-US shipments unleashed by the May 12 reduction of US tariffs on China from 145 to 30%.

Carriers showed how quickly they will respond to market conditions in the current environment by pulling and then re-introducing significant capacity in response to the April 9 imposition of 145% tariffs and the withdrawal of those levels just over a month later.

At least one ship headed from Asia to Europe dumped its cargo midway to race back to the trans-Pacific, said a BCO with cargo aboard the ship.

Rates from North Asia to West Coast North America were assessed at $2,900/FEU on June 20 by S&P Global Platts, a drop of $1,100 drop versus the prior week, according to the Platts Global Container Freight Weekly. “Carriers added substantial capacity into the Pacific Southwest, including extra loaders, in anticipation of a stronger recovery that never fully materialized,” Platts said.

“Carriers now face a difficult balancing act: maintaining capacity for potential peak season volume while managing oversupply in the current market,” Platts said.

Weakness of overall volumes was evident in robust less-than-container load or LCL volumes, suggesting shippers are moving goods in smaller quantities, according to forwarders.

north-asia-to-us-west-and-east-coast-container-spot-rates-platts
About Journal of Commerce

Journal of Commerce is produced by a team of specialized, subject-matter expert journalists providing original daily news analysis of international logistics for corporate logistics teams and other participants in global supply chains. We are accountable to paying subscribers who demand that our news and analysis be accurate, fair, independent, and informative. Part of S&P Global, the editorial team leverages extensive data assets and relationships built over many years throughout trade and transportation to deliver trusted, executive-level insights relied upon by senior logistics executives. The Journal of Commerce group builds on its expertise and source relationships to develop industry-leading conferences including TPM, Breakbulk, and Inland Distribution.