Freight market update - 4 June 2025

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• A recent appeals court decision has upheld the existing tariffs, keeping them in place for now.

• Meanwhile, a 90-day pause on reciprocal U.S.-China tariffs has triggered a surge in U.S. import demand from the Far East.

• Rate hikes have taken place on both FAK (Freight All Kinds) and long-term contracts.

• Peak Season Surcharges (PSS) are now being applied to long-term contract rates.

• MSC is deploying larger vessels to meet demand.

• Hapag-Lloyd and Maersk have introduced a new Transpacific service under the Gemini network.

• Inland Container Depots (ICDs) in India are also facing shortages, especially for carriers HMM, ONE, and YML.

• European exporters are increasing shipments to the U.S., resulting in strong volumes at U.S. East Coast ports.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• A recent appeals court decision has upheld the existing tariffs, keeping them in place for now.
• Meanwhile, a 90-day pause on reciprocal U.S.-China tariffs has triggered a surge in U.S. import demand from the Far East.
• Businesses are accelerating shipments to take advantage of the temporary relief, which is tightening Transpacific capacity and pushing freight rates higher.
• This pressure is now affecting other trade lanes, such as Far East to North Europe, as carriers shift capacity to support Transpacific demand.
• The capacity reallocation is reducing available supply on the Far East–North Europe route.
• With added strain from European port congestion and ongoing Red Sea diversions, we are collaborating with shippers on European lanes.
• Strategies include extending booking cycles and expanding carrier options to help secure both space and competitive rates for critical shipments.
• Rate hikes have taken place on both FAK (Freight All Kinds) and long-term contracts.
• FAK rates are currently at very high levels for shipments to both the U.S. West Coast and East Coast.
• Peak Season Surcharges (PSS) are now being applied to long-term contract rates.
• General Rate Increases (GRIs) are holding steady, with further substantial hikes likely if market strength continues.
• A sharp increase in shipment volumes is tightening available space across the trade lanes.
• This surge is largely driven by revived U.S.-China trade activity and importer strategies ahead of potential new tariffs.
• Weekly TEU (Twenty-foot Equivalent Unit) shipment volumes have jumped significantly.
• Carriers are responding by reinjecting capacity into the Transpacific trade, especially toward the West Coast.
• MSC is deploying larger vessels to meet demand.
• CMA CGM is bringing back previously suspended services.
• Hapag-Lloyd and Maersk have introduced a new Transpacific service under the Gemini network.
• CU Lines is also re-entering the Transpacific market, contributing additional capacity.
• Significant capacity injections are evident for June and July, exceeding pre-tariff pause levels.
• Carriers are currently prioritizing services to the U.S. West Coast.
• Schedule reliability improved significantly: Asia–North America West Coast rose by 14.4 points to 67.6%, and Asia–North America East Coast rose by 11.6 points to 52.6% for March–April 2025.

Shanghai (SHA)

• Space to the U.S. West Coast (USWC) is less busy, with market conditions showing signs of decline.
• Rates to USWC are expected to decrease, largely influenced by FBA cargo volumes.
• Always check rates and availability case-by-case for accuracy.
• Space to the U.S. East Coast (USEC) is very tight.
• USEC shipments require case-by-case checks for space and rate updates.

Tianjin (TSN)

• The market is slightly hot, and rates have increased.
• Space should be booked up to 5 days in advance.

Dalian/Beijing (DLC/PEK)

• Rates with major airlines continue to rise steadily.
• Spot rates apply for dense cargo; volume cargo requires a 6–7 day lead time.
• Splits are accepted, but higher rates apply for larger shipments.
• Expect high rates to continue across all airlines; confirm availability and rates case-by-case.

Qingdao (TAO)

• The U.S. market is stable, and space is not too tight for both West and East Coast destinations.
• Airfreight rates have slightly decreased for certain airports.
• Spot rates are available for dense or volume cargo.
• Despite stability, tight space and high rates are expected to persist—verify case-by-case.

Guangzhou (CAN)

• The market remains hot, space is tight, and rates are holding firm.
• All shipments must be checked individually for space and spot rate confirmation based on actual flight dates.

Shenzhen (SZX)

• Market conditions are hot, with rates continuing to rise.
• All shipments and rate quotes must be verified directly with carriers on a case-by-case basis.

Xiamen (XMN)

• The market is stable, with costs slightly down post-holiday.
• Final rates vary depending on the actual flight schedule.
• Similar conditions are expected to continue; rates should be quoted case-by-case.

Turkey → North America

• The first half of June remains soft in terms of freight rates from India.
• Freight rates from Pakistan have increased.
• In Bangladesh, rate trends are mixed and vary by carrier, influenced by rate hikes from the Far East.
• FAK/NAC rates for India remain stable in early June across several carriers.
• For Bangladesh, some carriers have implemented significant rate increases in early June, while others remain steady.
• MSC has announced a General Rate Increase (GRI) for shipments from India and Pakistan, effective in the second half of June.
• A container shortage is anticipated in Pakistan.
• Inland Container Depots (ICDs) in India are also facing shortages, especially for carriers HMM, ONE, and YML.
• Tailwind is shifting its Asia hub from Colombo to Port Klang.
• The new rotation, starting from June 1st, will begin from Chittagong.
• Schedule reliability for ISC–Europe services has improved, rising from 45.4% in February–March to 55.5% in March–April.

North America → Turkey

• Demand is strong due to the typical peak season for this trade lane.
• European exporters are increasing shipments to the U.S., resulting in strong volumes at U.S. East Coast ports.
• Vessel utilisation remains high as shippers front-loaded cargo during the recent tariff reprieve window.
• In response, carriers have reduced the number of blank sailings to meet this surge in demand.
• For May 2025, only a small amount of TEU capacity was withdrawn by carriers.
• Freight rates are trending upward.
• Long-term contract rates on Transatlantic lanes remain more stable—and generally higher—than spot market rates.
• Large BCOs shipping Europe-to-U.S. under contract are paying more than spot rates in Q2 but are benefiting from guaranteed space amid tight capacity.
• There is speculation that new contracts in late 2025 may be negotiated at lower rates if spot market weakness continues.
• Northern European hub ports are experiencing severe congestion.
• In Rotterdam, average berth wait times have exceeded 5.6 days as of spring 2025.
• Yard utilisation in Rotterdam is near capacity due to a combination of recent labor unrest and overlapping alliance service calls.
• Antwerp terminals have imposed restrictions on empty container returns to free up yard space.
• These restrictions have slowed the inland movement of import containers and reduced overall cargo flow efficiency.

Terminal Updates

Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

New York:

• The waiting time for all vessels calling APMT is up to 6 hours. Maher Terminals LLC reports vessel waiting times averaging around 6 hours.
• Average gate turn times are 42 minutes for single transactions and 63 minutes for double transactions.
• The average import rail dwell time is 11.4 days.
• The last 2 cranes on APMT East berth to be operational by end of June.

Norfolk:

• The waiting time for a berth is up to 12 hours at Norfolk International Terminal (NIT) and 18 hours at Virginia International Gateway (VIG).
• Average gate turn times are 37 / 55 minutes for single and double transactions at NIT, and 36 / 63 minutes for single and double transactions at VIG.
• The average Import dwell time is 2.8 days.
• Crane #4 at NIT remains out of service since April 16 with no current update.

Charleston Terminal:

• 6 hrs. waiting time for Gemini vessels and 12 hrs. for non-Gemini.
• No waiting time at North Charleston Terminal.
• Average truck turn times are 18 / 20 / 16 minutes at Wando Welch Terminal, North Charleston Terminal, and Leatherman Terminal respectively.
• Average Import dwell time is 8.3 days at North Charleston Container Terminal.
• Average Import dwell time is 8.3 Days at Wando Welch Container Terminal.

Savannah:

• The average waiting time for vessel berth is 1.5 days for class 1 and 2 days for class 2 vessels.
• Average gate turn times are 34 / 52 minutes for single and double transactions respectively.
• Import dwell time is 5.9 days. Rail dwell time is 1 day.

Houston:

• Waiting time is up to 24 hours at Barbours Cut Terminal and 6 hours at Bayport Container Terminal.
• Average gate turn times are 32 / 50 minutes at Barbours Cut and 30 / 47 minutes at Bayport for single and double transactions respectively.
• Loaded import dwell time is 3.6 days at Barbours Cut and 3.6 days at Bayport.
• Yard use remains high at Barbours Cut.
• Effective July 1, 2025, Excessive Import Dwell Fees will be implemented for loaded refrigerated (reefer) import containers.
• These fees will apply after the expiration of free time.
• This includes days when the terminal truck gates are closed due to scheduled terminal closures.

Oakland:

• No waiting time at Oakland International Container Terminal (OICT).
• Average gate turn times are 96 minutes.
• Average import deliveries can take up to 4 days at OICT.
• Two cranes at OICT are currently out of service.

Seattle-Tacoma:

• No waiting time at Husky Terminal or Washington United Terminal in Tacoma.
• No waiting time in Seattle.
• Import rail dwell is 2.3 days at Husky and 3 days at T18.
• Average gate turn times are 31 minutes at T18 and 55 minutes at Husky.

Los Angeles/Long Beach:

• All terminal gates are running as published and in line with the Pier Pass program.
• Port of Los Angeles dwell time for local import cargo is 3.2 days; on-dock rail dwell is 4.3 days.
• Import units on the street are averaging 3.5 / 7.4 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports remain at 4-8 days.
• Average terminal gate turn time is between 36 - 43 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Louisville - Deficit on 20’ chassis.
• Pittsburg - Deficit on 40’ chassis.

Intermodal Operations

Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

Port Status

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing robust performance and is equipped with ample capacity and resources. Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions.

To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts. Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.