For this week’s transpacific logistics market update, as we move into the second week of July, ocean carriers have followed through on the expected rate increases that were announced in June, and spot pricing has continued to climb on both the West Coast and East Coast lanes. Carriers are now adding additional peak season surcharges for mid-July, meaning rates are not expected to ease anytime soon.
Market Conditions Breakdown
- Businesses are booking shipments early to avoid anticipated tariffs and cost hikes, which is pushing peak demand into the summer.
- Spot rates from Asia to the U.S. West Coast are now more than double where they were in mid-May.
- Asia to U.S. East Coast pricing has climbed by about 85% over the past six weeks and is now above last year’s summer frontloading peak.
- Asia-Europe and Mediterranean lanes are also up year to date, though the pace of increase slowed somewhat over the past week compared to the Transpacific.
- Port congestion is increasing in South Asia, the Far East, and Europe. This is limiting ship availability and further driving up shipping costs.
HMM Adds New Peak Season Surcharge on Transpacific Route
Effective July 15th, HMM has announced a new Peak Season Surcharge per 40-foot container on Transpacific eastbound cargo.
Capacity Outlook
- Carriers have reduced cancelled sailings, with roughly 96% of East-West routes now running. However, the Transpacific route still accounts for the majority of remaining cancellations.
- Available capacity from Asia to the U.S. West Coast has reached an all-time high, but strong booking demand is largely absorbing the additional space rather than easing rates.
- Importers continue to book early; LogiWorld is advising three or more weeks of lead time to secure space heading into the fall months and holiday season.
- Rollover risk remains high on several Transpacific services as carriers manage tight vessel utilization.
IEEPA Tariff Refunds Now Processed in CAPE
Customs and Border Protection reported in an update to the U.S. Court of International Trade that over $100 billion in potential and certified IEEPA tariff refunds have been accepted for processing through the agency’s Consolidated Administration and Processing of Entries (CAPE) Phase 1 system in ACE since April 20.
Plan Ahead for Peak Season
With Transpacific rates still climbing and new surcharges adding in for mid-July, early planning remains non-negotiable. Our team can help you secure space and manage surcharges for any upcoming import or export shipments.
If you have upcoming import or export shipments, our team can help you secure space, navigate the complex market changes, and avoid potential delays.
