Ocean Freight Rates Sink with Weak Demand and Port Fees; Europe Strengthens Freight Advantage as U.S. E-Commerce Traffic Declines

Ocean shipping rates from Asia to the U.S. recently plunged to their lowest levels since late 2023, according to a weekly update from Freightos. The average fully loaded container rate from Asia to the U.S. West Coast dropped about 8 percent week over week to $1,431, with a similar fall to $3,015 for shipments to the East Coast. Several factors are converging to suppress rates: U.S. import volumes remain weak, tracking back to mid-2023 levels, and carriers are navigating a complex mix of new port-call fees for China-linked vessels along with broader trade tensions. Meanwhile, tentative signs of easing in the Red Sea conflict have raised expectations that shipping capacity will return as carriers restart services via the Suez Canal. Carriers are already adjusting operations to mitigate rising regulatory and tariff risks on both sides of the Pacific. With weakening demand and rising complexity, rate pressure appears set to continue through the end of the year.

As e-commerce traffic to the United States declines, European carriers and logistics providers are gaining momentum thanks to shifting global freight flows. Recent data from WorldACD show that air-freight tonnage from Asia-Pacific origins, notably China and India, to the U.S. slipped again in week 41 of the year, while Europe continues to benefit from that redirection. Shippers are increasingly leaning on European gateways and logistics networks to connect with North American demand, strengthening Europe’s position as a regional hub. The trend reflects more than carrier routing choices. It signals a strategic realignment as companies re-balance supply-chain footprints amid tariffs, shifting consumer markets, and trade policy uncertainty. Europe’s infrastructure and geographic advantage are paying off as trans-Pacific corridor volumes face headwinds. For logistics firms with a footprint in Europe, this presents a strong opportunity to capture growth, though they must remain nimble as demand stays unpredictable while the U.S. e-commerce market softens.