• China-US West Coast FEU prices continue to drop after a mid-month GRI was struck. Prices are down 6% this week (from $1,555 to $1,445/FEU) (FBX01 Daily). This is the closest this year’s rates have dropped to last years in a full eight months. Air cargo searches on WebCargo increased by 35% last week,
• China-US East Coast prices remained flat at last week at $2,920/FEU (FBX03 Daily). Due to an ongoing drought that’s reduced Panama Canal capacity, prices on this lane are still 27% higher than last year.
• China-Europe prices are at $2,920/FEU (FBX11 Daily), unchanged from last week. Demand will likely increase before Europe goes on vacation in August, but that should be more than satisfied by new mega-ships and the recently added Ocean Alliance loop. Supply will continue to be pulled back as more vessels are fitted with scrubbers to conform with IMO’s low-sulfur fuel regulations.
Commentary
“Last week’s tweet from President Trump left little time for ocean freight to beat the deadline, sending air cargo searches from forwarders up by 35%.
Ocean rates from China to the West Coast tumbled 12% this month alone and are closer to last year’s rates than they have been in over ten months. But this could all change if the looming 25% tariff increase on the rest of Chinese imports are imposed. In the past, tariffs implemented with enough notice have prompted ocean freight rushes and could precipitate a summer price spike,” said Eytan Buchman, CMO, Freightos