Shipping Rates Plummet to Cost Levels Despite High Season
Publish Time: 2025-07-15 Origin: Site
Key Developments
Rate Collapse
US West Coast: $2,089/FEU (SCFI) → $1,700/FEU (Maersk’s July 9 offer), below most alliances’ cost.
US East Coast: Dropped from $3,700–4,100/FEU to $3,400–4,000/FEU.
Market Shakeout
Non-alliance carriers may exit US routes as rates hit unsustainable levels.
Vessels shifted from US to Europe after June’s "peak pre-tariff rush," now suppressing European rates.
Structural Glut
Supply growth: 10.3% (newbuild deliveries).
Demand growth: Just 2.0%.
Alphaliner’s 2023 Forecast:
Even 10% capacity absorbed by Red Sea diversions can’t offset oversupply.
Drivers & Outlook
Tariff Chaos: Trump’s pending tariffs freeze importer demand; no pre-August stockpiling.
Europe Shift: US-China trade slump pushes cargo to Europe, but Q3 volumes may disappoint.
?? Warning: More rate wars and route suspensions expected if demand stays weak.