Rate Related Update and Market Conditions
Market Conditions
TPEB (Trans-Pacific Eastbound)
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Demand continues to climb sharply due to the temporary reduction in U.S. tariffs on Chinese goods and the upcoming peak season. Spot rates are rising, supported by a GRI on May 15 and a $3,000 increase planned for June 1. Fixed-rate contracts are seeing the rollout of Peak Season Surcharges, with broader implementation expected in early June.
FEWB (Far East Westbound)
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Rates on the FEWB are stabilizing as cargo volumes gradually recover, though a seasonal peak has yet to emerge. Despite a recent Trans-Pacific cargo surge, rate declines have paused, and market sentiment is trending toward sustainability. Proposed June GRIs may face challenges due to ample capacity still scheduled in the near term.
TAWB (Trans-Atlantic Westbound)
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Expected rate increases on the TAWB have been delayed, with most carriers postponing PSS implementations across North, West, and East Mediterranean lanes. With demand still trailing forecasts, carriers are maintaining current pricing strategies while watching market conditions for potential shifts in June.
Operational Updates
TPEB:
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Equipment supply remains stable at origin locations across Asia, though increasing demand requires close monitoring. No immediate container shortages have been reported.
FEWB:
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Port congestion is ongoing in Shanghai and Ningbo, causing vessel delays. Equipment availability may become strained as Trans-Pacific traffic draws on shared inventory pools.
TAWB:
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Persistent congestion continues at major ports in Europe, including Antwerp, Rotterdam, and Genoa. Inland locations in Central Europe are experiencing equipment shortages, prompting ongoing repositioning efforts by carriers.
Capacity Management
TPEB:
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Carriers are actively restoring capacity, with a notable recovery since mid-May. Week 21 capacity sits 10% below normal, improving from 23% in Week 19, and is forecasted to rise further in Week 22. Several suspended service loops are resuming, and extra loaders are being deployed on key U.S. West Coast routes.
FEWB:
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Weekly capacity remains stable, with most alliances maintaining current levels through the end of May. A temporary 17% reduction is expected in Week 25, impacting shipments departing in mid-June. Some equipment constraints may result in restricted space availability.
TAWB:
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Carriers have not announced significant changes to capacity, maintaining a cautious stance while utilization trends remain flat. Space availability continues, but no adjustments are expected unless demand shifts materially.
Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com
📌 Current U.S. Tariff Status (as of May 23, 2025)
📌 Current U.S. Tariff Status (as of May 23, 2025)
CBP clarified that shipments on feeder vessels do not qualify for in-transit tariff exemptions. To be eligible, cargo must have been loaded on the final vessel to the U.S. by:
• April 5 for IEEPA exemptions
• April 9 for the 10% baseline tariff
All qualifying cargo must arrive and clear Customs by May 27.
De minimis has expired for Chinese-origin goods. Low-value shipments now face either a 54% duty or a $100 flat fee, collected by the carrier.
As of May 14, Chinese goods are subject to a 10% tariff, rising to 34% on August 12. Other countries remain at 10% until July 9.
🔗 For more related tariff news, please visit our website: 📢 News Room
Source: whitehouse.gov, politico.com, whitehouse.gov
Air Cargo Demand Falls as E-Commerce Volume Declines
Global air cargo is seeing a sharp decline following the removal of the U.S. duty-free exemption for low-value shipments from China on May 2. This policy change has reduced demand for trans-Pacific air freight, which had surged in recent years due to e-commerce growth. With traditional air cargo markets also slowing, carriers that prioritized small-parcel shipments are now experiencing decreased volumes and uncertainty in forward booking trends.
Importers Rush to Move Goods Before Tariff Suspension Ends
U.S. importers are accelerating shipments to beat upcoming tariff increases as temporary suspensions are set to expire in July and August. This urgency is complicated by stricter customs documentation requirements, including more detailed product classifications. Customs officials are conducting audits at higher rates, and technical platform changes are also adding to the complexity. Uncertainty remains about whether qualifying cargo must be loaded or landed before deadlines, adding to the pressure on shippers.
U.S. Launches Probe Into Maritime Flagging Practices
The U.S. Federal Maritime Commission has opened an inquiry into the use of flags of convenience and their potential risks to maritime safety and trade reliability. The investigation is focused on practices that may weaken oversight and contribute to incidents, such as recent vessel collisions and AIS tampering. A public comment period is open through August, with the aim of identifying responsible flagging standards that promote transparency, safety, and operational consistency in global shipping.