Container rates unmoved by latest tariff deadline

Freight markets witnessed a relatively subdued response following last week’s dramatic trade announcements, contrasting sharply with earlier reactions to tariff developments.

Previously, shippers hurriedly loaded goods between announcement periods to beat deadlines. However, the current situation reveals a lack of urgency ahead of the August 7 tariff imposition deadline set by President Donald Trump, according to the latest update by analyst Freightos. This may be attributed to the weariness of shippers who previously engaged in proactive frontloading, leading to a diminished urgency during this tariff window.

Trans-Pacific container rates to the West Coast have maintained stability for three consecutive weeks, remaining at an average of $2,300 per forty-foot equivalent unit (FEU). Daily rates have seen a slight decrease of approximately $100 since August 1. In contrast, the East Coast experienced a 4% drop to $3,950 per FEU, marking the sixth week in a row of declining rates. Meanwhile, trans-Atlantic rates have also held steady at around $1,900 per FEU, indicating persistent stability in that corridor.

Sources told FreightWaves that related factors have been affecting eastbound volumes from China: Congestion from a ‘terrible’ situation with blank sailings as carriers try to right-size capacity, while shippers waiting out the tariff chaos hold back loaded containers, treating the docks like a warehouse.