Asia–US container spot rates surged to $6,639/FEU by 3 July — up 14% weekly and 253% from pre-Strait of Hormuz crisis levels — despite record capacity of 350,000 TEU. Asia–Europe rates hit $5,377/FEU, 142% above March lows. HMM imposed a $3,000/40ft PSS effective 15 July. Geopolitical tensions persist amid fragile Hormuz ceasefire and suspended naval escorts after an Oman-area attack.
According to www.seatrade-maritime.com, spot freight rates on the Asia–US West Coast route reached $6,639/FEU by 3 July — up 14% week-on-week and 253% compared to pre-Strait of Hormuz crisis levels at the end of February.
Record capacity fails to curb rate inflation
Xeneta’s four-week rolling average capacity index shows Asia–US West Coast offered capacity hit an all-time high of 350,000 TEU. Despite this surge in available space, rates continued climbing. MSC reinstated its Pearl service on 13 June, adding approximately 6,200 TEU/week between Yantian and Long Beach. Yang Ming and ONE are also deploying extra-loaders, according to Xeneta.
Capacity on the Asia–Europe trade has rebounded less dramatically but remains elevated. Spot rates to Europe stood at $5,377/FEU on 3 July — 142% above their post-Iran conflict lows seen in early March when rates were around $2,500/FEU.
Broader East–West rate escalation
US East Coast (USEC) spot rates soared 215% versus pre-Iran war levels, while offered capacity rose 9% week-on-week. Mediterranean capacity edged up 1.7% over the same period, with rates jumping 103% since 1 March — a four-month span. Atlantic westbound rates climbed 7% week-on-week to $2,523/FEU, representing a 71% increase over pre-war benchmarks.
Peter Sand, chief analyst at Xeneta, stated:
“Ocean container shipping is running hot on the Transpacific, with offered capacity from Far East to US West Coast hitting an all-time high this week and spot rates showing another double-digit increase to now sit +253% compared to pre-Strait of Hormuz crisis at the end of February.” — Peter Sand, Chief Analyst, Xeneta
Carrier surcharges and peak season pressure
Drewry confirmed carriers are implementing General Rate Increases (GRIs) and Peak Season Surcharges (PSS) for July. HMM introduced a PSS of $3,000 per 40ft container, effective 15 July. Drewry expects further rate increases in coming weeks, citing “strong peak season demand” and higher shipping costs driven by geopolitical disruptions.
Carriers have also raised Full All-in Rates (FAK) and applied peak season surcharges on the Asia–Europe corridor. Drewry noted the East–West container freight market has remained resilient this year, supported by early peak season demand and elevated costs stemming from Middle East instability.
Geopolitical uncertainty persists
Although the interim US–Iran agreement enabled partial reopening of the Strait of Hormuz, vessel traffic remains largely under Iranian control. Security risks remain elevated following suspension of ship escort operations after an attack on a containership near Oman. As Drewry observed:
“Security risks remain elevated after the suspension of ship escort operations following an attack on a containership near Oman. As a result, ongoing geopolitical tensions in the Middle East continue to underpin market uncertainty.” — Drewry
Analysts caution that the market is not yet ready to turn a corner: spot rates are expected to keep rising into mid-July on major fronthaul routes to Europe and the US. While additional capacity improves reliability for shippers, it has proven insufficient to reverse the upward pricing trend.
Related: China launches first zero-carbon sea-river container corridor; FedEx names CMA CGM preferred ocean carrier in $1.4bn logistics deal.
Source: Seatrade Maritime
Compiled from international media by the SCI.AI editorial team.
