The dual threats of tariff hikes and port strikes continue to buttress ocean freight rates through what is historically a post-peak trough.
Asia to U.S. West Coast rates fell 4% to $4,905 per forty-foot equivalent unit while Asia-U.S. East Coast prices climbed 13% to $6,095 per FEU for the week that ended on Friday, according to the Freightos Baltic Dry Index.
Some frontloading ahead of a possible strike by the International Longshoremen’s Association after an extension of the coastwise master contract expires on January 15, “and expectations of tariff increases next year have kept transpacific ocean rates elevated to start December, with rates to the West Coast – even before the Lunar New Year 2025 rush – already above their pre-Lunar New Year 2024 highs seen back in January at the start of the Red Sea crisis,” wrote Judah Levine, head of research for Freightos. “Some carriers are reportedly introducing significant general rate increases (GRI) to try to push rates higher to start the month.”
Levine noted that, while the arrival window to move shipments from Asia to the East Coast before the strike deadline is closing, “a significant amount of inventories were already built up from frontloading ahead of the October strike, and there is likely still a runway of at least several months before tariffs go into effect.”
That could make early-December rate increases difficult to sustain, he said, though prices could increase later in the month or early in January ahead of Lunar New Year.
Read more in an article from American Shipper.