The eastbound trans-Pacific shipping market is showing signs of strain as spot rates from Asia to the U.S. West Coast (USWC) tumble under the weight of vessel overcapacity, while East Coast rates surge in the opposite direction—highlighting a striking divergence in market dynamics.
As of June 9, rates to the USWC fell 6% week-over-week to $5,700per FEU, according to data from Platts. Insiders suggest actual market-moving rates to the Southern California gateway are even lower—closer to $4,000–$5,000 per FEU—as ships leave Asia for Los Angeles-Long Beach half-full.
“Carriers have been way too aggressive in reintroducing extra loaders and services to the Pacific Southwest,” said one executive, who pointed to underutilized capacity as the root of the pricing collapse.
Meanwhile, the U.S. East Coast is experiencing the reverse trend. Spot rates climbed 4% to $7,400 per FEU, creating a$1,700 spread between East and West Coast lanes—the widest since January. The surge is attributed to ongoing demand and limited capacity heading toward key ports such as New York-New Jersey and Savannah.
According to Stephen A. Nothdurft, VP of Sales for North America at MOL Consolidation Services, “It’s a bit of an indication that the so-called ‘normal’ differential of $1,000 is all really based on supply and demand.”
The spike in East Coast rates is partly driven by U.S. retailers racing to bring in holiday inventory. With Black Friday looming, carriers expect volumes to grow rapidly in the coming weeks before tapering off by late July, due to extensive frontloading earlier this year.
“Retailers need product on shelves by Thanksgiving, so they’re finalizing orders now,” noted industry consultant Kevin Parkerson. He pinpointed early August as the final shipping window for East Coast-bound goods from Asia.
Yet, some remain skeptical about the long-term sustainability of this demand. Jason Cook, CEO of Ardent Global Logistics, remarked, “Time will tell, but I’m not 100% confident in the East Coast extending its imports for very long.”
As trade volumes shift and geopolitical uncertainties—like tariff suspensions—continue to influence import behaviors, logistics professionals must stay alert and flexible. Rate volatility and carrier strategy will shape supply chains across both coasts throughout the summer peak season.
Source:https://www.joc.com/article/asia-uswc-spot-rates-weakening-as-vessel-overcapacity-takes-hold-6022847
