Asia-US East Coast Rates Hit 2025 High as Carriers Blank Sailings

Asia-U.S. East Coast spot rates jumped 9% to $10,565 per FEU last week — a high for the year — even as forwarders reported cooling demand and easier space on the trans-Pacific, Freightos said in its latest market update.

West Coast rates rose 3% to $8,368 per FEU, defying the usual post-Golden Week slowdown. Daily East Coast prices have since pulled back but held roughly $200 per FEU above the prior week's level, Freightos said.

On Asia-Europe, the Freightos Baltic Index put Asia-North Europe at $3,551 per FEU, up 3%, while Mediterranean prices climbed 8% to $4,252 per FEU. Rates have risen since mid-October on port congestion and carriers blanking sailings.

How much capacity is back in the Red Sea?

Nearly two-thirds of capacity deployed between Asia and Europe now routes through the Red Sea, according to Alphaliner. Its survey of the 10 largest carrier networks found 24 of 46 direct services using the passage, representing 63% of deployed capacity. The share runs higher on Mediterranean routes — 70% — than on North Europe strings, at 58%.

Zim announced a return to the Red Sea for its joint Asia-U.S. East Coast service with Mediterranean Shipping Co. That move is notable: Yemen-based Houthi rebels declared the Bab el-Mandeb Strait closed to Israel-linked vessels as recently as August.

The return stays uneven. Some services transit the Suez Canal toward Europe but still sail around Africa on the way back, underscoring carrier caution.

Why are rates rising on softer demand?

Typhoon Champi closed Taiwan's container ports — Kaohsiung, Keelung and Taipei — on Friday, largely sparing East China operations before weakening toward Japan. Major Chinese hubs are still recovering from earlier summer storms, and many have yet to return to normal operations. That congestion has propped up rates even as demand eases after peak season, Freightos said.

The shift back to the shorter Red Sea route may add its own friction. Ships arriving ahead of schedules built around Africa diversions can bunch at destination ports, pressuring terminals already clearing backlogs.

Carriers are pushing for further November increases and backing them with capacity cuts. Drewry counted eight blank sailings scheduled on Asia-Europe routes for the following week, against two in the current week. European forwarders remain skeptical — they said carriers discounted published rates during October and expect similar concessions in November.

Could a strike hit LA-Long Beach?

About 250 port watchmen at Los Angeles-Long Beach have authorized a strike that could begin Nov. 1 if contract talks fail. The workers represent only around 2% of the ports' ILWU workforce, but their role amplifies the risk. The Pacific Maritime Association said terminals employing the watchmen handle roughly 85% of Long Beach's cargo and 33% of Los Angeles' cargo.

The PMA warned other ILWU members were not expected to cross Local 26 picket lines, which could stop vessel, yard and gate operations at affected terminals. Negotiations continue. No strike is confirmed. Any stoppage would compound existing delays for rail-bound containers at the complex.

What's next on U.S. trade policy?

The White House extended its trade truce with China in late September, preserving current tariff arrangements until early January. But U.S. port fees on China-linked vessels remain formally scheduled to resume Nov. 10. Rather than deferring them outright, the U.S. Trade Representative opened a request for comments on postponing them until January — a step that points toward delay but does not itself suspend the fees.

USTR also expects to complete Section 301 investigations into excess manufacturing capacity in China and 15 other countries by year-end. Those probes could provide a basis for restoring tariffs to levels previously imposed under the International Emergency Economic Powers Act, which the Supreme Court invalidated — leaving some countries, including China, facing rates below negotiated levels. Even with December findings, the required comment and hearing process could push any new duties back another couple of months.

For importers, the takeaway is uncomfortable: the Red Sea return shortens voyages, but congestion, blank sailings and labor disputes mean more capacity won't automatically mean cheaper or more reliable shipping.