Data highlights:
- Average spot rates from Far East to US East Coast and US West Coast remain flat since uptick on 1 April when they increased +9% and +15% respectively.
- Average spot rates are down 42% into US East Coast and 50% into US West Coast since 1 January, but remain up 61% and 79% respectively compared to pre-Red Sea crisis levels on 1 December 2023.
- Average spot rate from Far East to US East Coast on 10 April stands at USD 3 995 per FEU (40ft container).
- Average spot rate from Far East to US West Coast on 10 April stands at USD 2 935 per FEU.
- 90-day suspension of tariffs (reverting to 10%) on all nations other than China may see a rush to import goods into US.
- Could be significant for major US trading partners such as Japan.
- Average spot rates from Japan to US East Coast are USD 4 470 per FEU. This is USD 610 per FEU higher than China to US East Coast.
- On 1 January 2025, average spot rates from China to US East Coast were USD 120 per FEU higher than the trade from Japan.
- Average spot rates from Far East to Mediterranean on 10 April stand at USD 3 110 per FEU.
- Average spot rates from Far East to North Europe on 10 April stand at 2 385 per FEU.
Xeneta analyst insight – Far East to US (90-day tariff suspension)
Peter Sand, Xeneta Chief Analyst:
“The 90-day suspension of tariffs will be welcomed by shippers, but it should not be a cause for celebration. We still have a rapidly escalating US-China trade war with tariffs spiralling above 100%.
“The fact we are viewing the latest situation as an improvement - despite a potentially catastrophic trade war between the world’s two most powerful economic forces – is more an indication of how dire the circumstances were previously.”
Xeneta analyst insight – Far East to US (potential for rush of imports)
Peter Sand, Xeneta Chief Analyst:
“Those shippers with the opportunity to rush imports out of non-China nations will do so because the situation remains highly-unpredictable. There is every possibly the higher tariffs come into effect 90 days from now.
“Global maritime supply chains have suddenly become even more complex. Shippers will be monitoring freight costs across the major and secondary trades. Japan, for example, is one the key trade partners with the US so a rush to frontload goods could put upward pressure on spot rates on this trade.
“Average spot rates from Japan to US East Coast were USD 120 per FEU lower than China to US East Coast on 1 January. They are now USD 610 per FEU higher, with the potential for this spread to increase if there is a rush of goods out of Japan at the same time as a fall in demand out of China.
“Many shippers with containers held in foreign trade zones within the US will also release these goods and take the hit of a 10% tariff now rather than risk waiting and incurring a higher fee in 90 days.”
Ends
Xeneta’s Media Contacts:
Philip Hennessey
Director of External Communications
Xeneta
+44 7830 021808
press@xeneta.com
