Rate Related Update and Market Conditions
📌 Current U.S. Tariff Status (as of October 31, 2025)
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U.S.–China Tariff Developments: Following the October 30 meeting between President Trump and President Xi, both leaders announced key trade adjustments. President Trump will reduce the “fentanyl” tariff on China from 20% to 10%, pending formal confirmation. China will delay its new rare earth export controls for one year and resume large-scale soybean purchases from the U.S., marking its first shipments of the season.
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Port Fee Suspension: The U.S. and China have mutually agreed to suspend port fees on each other’s vessels for one year, a move aimed at easing trade costs while broader negotiations continue.
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Medium- and Heavy-Duty Vehicle (MHDV) Tariffs: Effective November 1, imports of medium- and heavy-duty trucks and related parts will be subject to a 25% tariff, while buses and vehicles under HTSUS 8702 will face 10%. Vehicles 25 years or older remain exempt.
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U.S.–South Korea Trade Agreement: On October 29, both countries finalized new trade terms under which the U.S. will reduce reciprocal tariffs from 25% to 15%, while South Korea will invest up to $20 billion annually in the U.S. economy, including shipbuilding.
Source: whitehouse.gov, politico.com, whitehouse.gov
Rate Related Update and Market Conditions
Ocean Trade Lane Snapshot
Ocean conditions are stabilizing across key east–west trades as post–Golden Week capacity rebounds. On the Trans-Pacific Eastbound (TPEB), utilization has improved to the mid-80% range, with carriers holding firm on the October 15 GRI and filing another for November 1 while postponing the PSS to mid-month. Across the Far East Westbound (FEWB), vessel congestion at major European hubs continues to delay returns to Asia, tightening available capacity and lifting the SCFI by more than 25% over the past month. Equipment shortages at Shanghai and Ningbo remain manageable but require close coordination. Meanwhile, the Trans-Atlantic Westbound (TAWB) market remains steady, with European port congestion still extending vessel turnaround times, though rates are holding near $1,800–1,900 per FEU amid balanced supply and demand.
Air Freight Market Update
Asia’s airfreight market remains active heading into November as demand strengthens across key origins including China, Vietnam, and Southeast Asia. Tight space and steady rate pressure persist on Trans-Pacific routes, driven by electronics, e-commerce, and tariff-related exports. Asia–Europe capacity remains constrained but stable, while congestion continues at major hubs such as Ho Chi Minh and Bangkok. Markets in South Korea, Taiwan, and Malaysia are also seeing high utilization, with limited space extending into early November. Overall, rates remain elevated and advance booking continues to be essential to secure uplift.
Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com
Asia–Latin America Freight & Port Update
1) Freight Rate & Capacity Snapshot
Drewry’s latest data show spot rates rising on East–West trades, with a new GRI slated for November 1 and capacity remaining tight, signaling potential rate firmness. Utilization on key feeder routes is improving post–Golden Week, though Asia–LATAM specific indices remain scarce.
Sources: drewry.co.uk
2) Port Operations & Infrastructure
At Mexico’s Manzanillo, rail blockades and inland congestion were reported around October 27, affecting gate flows. In Peru’s Callao, a state of emergency declared October 21 is delaying port access and impacting vessel schedules.
Sources: mykn.kuegne-nagel.com
3) Transshipment & Compliance Updates
The Panama Canal Authority launched its LoTSA 2.0 long-term slot allocation with a first auction on October 28 for Jan–Jul 2026 transits, improving advance planning options for Asia-LATAM routing. Additional operational advisories may impact slot utilization and scheduling.
Sources: pancanal.com
US–China Trade Deal Spurs Short-Term Imports, Long-Term Uncertainty Persists
A newly announced one-year US–China trade deal is prompting American retailers to accelerate near-term imports, though analysts say the short duration limits long-term planning confidence. Market experts note that companies are prioritizing immediate needs rather than adjusting broader supply chain strategies. While the agreement may temporarily boost shipments from China, importers remain cautious amid continued uncertainty about future tariff and policy directions.
Container Freight Indices Show Mixed Signals Before November GRIs
Container freight benchmarks diverged sharply this week as major indices, including the SCFI, Drewry’s WCI, and Xeneta’s XSI, showed varying rate trends ahead of November’s General Rate Increases. The SCFI recorded significant weekly gains on Asia–Europe routes, while Drewry and Xeneta reported modest rises. Analysts attribute the discrepancy to carriers’ rate filings and short-term capacity management, with several GRIs set to take effect on November 1.
