Ocean freight rates from Asia held steady last week, but rates started to rise in the middle of the month with peak season surcharge increases as demand remains strong and congestion in the western Mediterranean and Far East caused by the Red Sea persists.
Strong demand and high spot prices have prompted some long-haul carriers to add transpacific and Asia-Europe routes. Smaller regional virus carriers have also entered the transpacific trade for the first time since the outbreak. But with capacity already stretched, the diversion of vessels to east-west routes could lead to higher freight rates on regional and low-volume routes, as it did in 2021 and 2022.
Some U.S. freight forwarders report that much of their recent demand growth has come from specific product categories that were brought forward ahead of tariffs on certain Chinese goods in August.
Recent delays and price increases may also put pressure on many shippers to move seasonal cargoes before freight rates rise further or to avoid delays later in the year that could threaten fourth-quarter inventory availability. Concerns about potential strikes at U.S. East Coast and Gulf ports in October also played a role. Some transpacific carriers are already fully booked for July.
