ports

Trans-Pacific Rates Cling to Elevated Levels as Carriers Manage Capacity

Benchmark Asia-U.S. ocean freight rates remain approximately $1,000 per forty-foot equivalent unit above pre-war levels, though weakness in underlying demand suggests carriers are engineering price support through capacity constraints. West Coast rates climbed 4% to $2,828 per FEU for the week ended May 8, while East Coast pricing rose just 1% to $4,340 per FEU. Asia-North Europe routes, which increased several hundred dollars in March, remain 10% higher at $2,850 per FEU despite recent softening trends. Carriers are blanking sailings and rolling container bookings to later voyages as they position for potential peak-season volume increases. Maersk estimates Strait of Hormuz disruptions cost $500 million monthly, with the expense passed to customers. A subdued demand outlook clouds the near term, with projections showing June volumes trailing May by 2% and July only 4% higher, signaling shipper caution heading into the second half.