August 7, 2025
Recent data shows that since June 2025, spot container rates from Asia to the U.S. West and East Coasts have dropped approximately 58% and 46%, respectively, with further declines expected in the months ahead.
This steep slowdown stems from a persistent oversupply of shipping capacity, ongoing geopolitical tensions (notably the unresolved U.S.–China trade talks), and sluggish EU economic conditions. Carriers have instituted “blank sailings,” reflecting weakened demand.
However, rerouting vessels to avoid Red Sea risks and bypass U.S. port tariffs—despite making voyages longer—has helped maintain capacity utilization at around 86%–87%, offering some mitigation to the freight rate downturn.
