Following the 90-day tariff pause between the US and China, Asia-North American ocean freight rates have continued to rise, highlighted by a recent General Rate Increase (GRI) imposed by carriers.
The ongoing trade war had already led to significant reductions in capacity on transpacific routes, and now, as demand surges, freight rates are steadily climbing.
Looking ahead to the third quarter, high shipment volumes are expected to persist. Industry reports suggest additional GRIs could be applied in June, potentially on both the 1st and 15th, which could further drive up rates.
In response to the growing demand, carriers have rapidly reinstated services that were previously withdrawn in April and May. Additionally, the Gemini Cooperation is launching a new service between East China, North-east Asia, and Long Beach at the end of June, aimed at strengthening capacity on the transpacific route.
However, the shift in capacity focus towards North America is beginning to affect the Asia-Europe trade lanes. Although volumes on the Asia-EU route remain steady, the redirection of vessels and equipment to transpacific services is tightening available space, which could impact rates on the Asia-Europe routes as we approach peak season.
Killick Martin continues to closely monitor these developments. Should you require more information or have any questions, feel free to contact our team.
