Following the US and China agreeing to a 90-day tariff pause, Asia-North American ocean freight rates have continued their upward trajectory, as demonstrated by a General Rate Increase (GRI) imposed by carriers earlier this month.

The trade war has led to significant capacity reductions on the transpacific trade, and with this heightened demand, rates are now climbing steadily.

As the third quarter nears, high volumes are expected to persist. Reports indicate that additional GRIs could take effect in June, possibly on both the 1st and 15th, which will likely push rates even higher.

In response to the surge in demand, carriers have quickly reinstated transpacific services that were previously withdrawn in April and May.

The Gemini Cooperation has also introduced a new service between East China, North-east Asia, and Long Beach, which begins at the end of June and will further strengthen capacity.

However, the shift in capacity towards North America is beginning to affect the Asia-EU market. While volumes remain steady, the redirection of vessels and equipment to transpacific routes is tightening space on Asia-European lanes.

This shift could influence ocean freight rates on Asia-EU routes, particularly as we approach peak season.

Atlantic Pacific is closely monitoring these developments. For more information or inquiries, please do not hesitate to contact the team.