03 Jul Trans-Pacific Spot Rates Fall As Demand Falters
Spot rates in the eastbound trans-Pacific have fallen, potentially signifying that the temporary tariff pause won’t deliver the consistent demand initially envisaged.
West Coast rates fell 32% in the week ending 17th of June whilst East Coast rates were down 11% over the same period. This drop represents a decline in demand as bookings at Asian ports decreased even though shipping companies injected more capacity in anticipation of Trump’s tariff pause, which is effective from May through to July.
However, there is also speculation that demand may surge upon finalisation of tariffs across the board or that this year’s peak shipping season (which typically commences June and lasts through to October) started early, prompting the initial demand surge.
Among all the various speculation points is the underlying fact that currently prices are softening however whether they will remain in the same direction or change is yet to be determined, but it will undoubtedly be impacted by factors including the final tariffs, as well as the high chance of general rate increases throughout July.
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