Asia-U.S. freight costs rise as shippers brace for pressures
Trans-Pacific container rates surged as 2025 begins, with shippers anticipating looming factors,
including the high demand during the Chinese New Year to fuel further upward movement in the
coming weeks.
A rate increase of 8%, reaching $4,825 per forty-foot equivalent unit (FEU), has been recorded
for containers moving from Asia to U.S. West Coast ports. Meanwhile, Asia-U.S. East Coast
prices rose 3% to $6,116 per FEU, according to Freightos’ Baltic Index for the week ending
December 27.
Judah Levine, head of research at Freightos, said container prices on the routes from Asia
could face additional upward pressure to start 2025, noting that pre-Chinese New Year demand
will likely combine with higher-than-normal volumes for this time of the year in the U.S., as
factories in Asia prepare to shut down for the holiday from January 29 to February 12.
“The Chinese New Year dip in volumes will likely be less pronounced than usual, too, as many
U.S. shippers continue to frontload ahead of expected tariff increases,” Levine said in a weekly
update
Levine also added that a series of January General Rate Increases (GRI) for trans-Pacific
shipping will also contribute to the rate increase but a seasonal decrease can be felt next
month.
“A seasonal decrease in demand starting later in February should see rates ease on the ex-Asia
lanes, though Red Sea diversions will keep them elevated well above long-term averages, just
as they were through 2024,” Levine explained.
The diversions were caused by vessel operators avoiding attacks by Yemen-based Houthi
rebels in the Red Sea. Many ocean services that previously used the Suez Canal now navigate
lengthier and more expensive routes around the Horn of Africa.
