Transpacific Market & Rate Update
Keep reading to check out our latest LogiWorld logistics market update! After weeks of tight capacity and rollovers, the space situation on US West Coast (USWC) services is expected to normalize by Week 47. The rate hike following the November 1 GRI appears to be short-lived — East Coast (USEC) spot rates have already slipped below $3,300 per 40’ container and continue to trend downward. USWC rates held steady last week, but signs of softening are starting to appear.
With tensions between the U.S. and China easing after their recent trade truce, demand from China is likely to cool further through the rest of Q4. This could put additional downward pressure on both USWC and USEC rates.
Last week’s meeting between the Presidents of China and the U.S. in Korea brought several small but notable agreements — including progress on rare earth trade, a reduction in fentanyl tariffs (from 20% to 10%), and a one-year delay in mutual port fees. However, analysts caution that these deals remain preliminary and could change before a comprehensive agreement is reached. Sea-Intelligence noted that while smaller, issue-specific deals are being made, the broader reciprocal tariffs remain in place — unlike other Asian countries such as Vietnam, Thailand, Cambodia, and Malaysia, which have secured wider exemptions.
Meanwhile, the ongoing U.S. government shutdown — now stretching past 35 days — continues to slow policy actions and could delay implementation of trade measures.
In short, the market remains volatile, with fluctuations in demand, vessel capacity, and freight levels. LogiWorld will continue to support our partners and clients in navigating these ongoing challenges.
India–US Ocean Market Update
1. Space Outlook (Weeks 46–51)
- USWC: Space remains tight but manageable.
- USEC: Space continues to be challenging, especially ex-Chennai, Tuticorin, and Cochin, with longer transshipment times via Colombo and Singapore. Early booking (2–3 weeks) is strongly advised.
2. Equipment Availability
- Chennai: 20’ containers are widely available; 40HC in limited supply.
- Tuticorin: 40HC shortages persist, but carriers are repositioning empties to origin ports.
- Cochin: 20’ containers are available; 40HC and 40NOR are in tight supply.
- Krishnapatnam/Vizag: Sufficient inventory, with occasional delays on special equipment.
- Nhava Sheva: Balanced supply, supported by ongoing repositioning programs.
3. Local Market Notes
- Special Rate Offers: Several carriers are promoting short-term USWC rates valid through mid-November. GRIs are expected for sailings later in the month.
- Port Congestion: Moderate congestion continues at Chennai and Tuticorin due to vessel congestion and high export volume.
- Blank Sailings: Some mainline services are omitting Colombo and Singapore, leading to minor delays on transshipment routes.
- Weather Impact: Northeast monsoon conditions are affecting Tuticorin and Chennai, occasionally disrupting gate-in and berthing schedules.
Southeast Asia Air Market Update
Air freight ex-Hong Kong to the U.S. remains busy, driven by strong e-commerce volumes from major platforms (Shein, PDD, TikTok, and GD) ahead of the Thanksgiving shopping rush. Airlines have implemented rate increases of about USD 0.80–1.00/kg effective November 1.
On a positive note, the U.S. government’s decision to reduce fentanyl-related tariffs and delay new tariff measures for a year is expected to help stabilize air market demand in the coming months.
U.S. / Canada/ Mexico Trade
USMCA entered into force on July 1, 2020, to replace the North American Free Trade Agreement (NAFTA) and must be reviewed by the U.S., Canadian and Mexican governments on the sixth anniversary of its implementation by July 2026. Prior the joint review, each country member is conducting its own assessment of USMCA. It seems U.S. government sentiment has shifted in last 5 years as some groups are pushing for separate agreements. Other representatives are actually pushing for higher tariffs for Mexico and Canada. LogiWorld will keep you updated on the USMCA as the situation changes.
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