Ocean Freight Decline

Extracted Attributes

• Key Cause

  Aggressive use of tariffs, particularly against China

• Consequence

  Increased costs for businesses

• Policy Context

  National security measures by a potential 'Trump 2.0' administration

• Primary Impact

  Severe impact on global supply chains

• Forecast (2025)

  Ocean cargo prices could reach $20,000, potentially approaching COVID-era peak of $30,000

• Market Reaction

  Significant

• Affected Companies

  Amazon

• Mitigation Strategy

  Creative use of bonded warehouses

• Location of Mitigation

  Mexico

• Market Trend (March 2025)

  Charter rates remained elevated, Harper Petersen Index (Harpex) around 2,072 points (up 72% year-over-year)

• Specific Rate (March 2025)

  Rotterdam to New York reduced to 2,316 USD per 40ft container

Timeline

• Freight rates from Shanghai to Los Angeles, Shanghai to New York, and Rotterdam to New York decreased. (Source: web_search_results)

  2025-03

• Global container spot rates (Drewry's 'World Container Index') dropped 6.8% ($173) to around 2,368 USD per 40-ft container. (Source: web_search_results)

  2025-03-21

• Higher tariffs on China–U.S. trade were imposed, triggering a sharp decline in shipments. (Source: web_search_results)

  2025-04

• Ocean carriers began implementing aggressive blank sailings due to the decline in shipments, expected to continue until early July 2025. Export routes to North Asia were expected to see a 40% reduction in sailings from the USEC and a 25% reduction from the USWC. (Source: web_search_results)

  2025-05-15

• Emergency operational surcharges and general rate increases were implemented. (Source: web_search_results)

  2025-06

• Discussion of the 'Ocean Freight Decline' in the context of the hypothetical 'First 100 Days of Trump 2.0' and its link to aggressive tariffs. (Source: related_documents)

  Ongoing

Passenger ship

A passenger ship is a merchant ship whose primary function is to carry passengers on the sea. The category does not include cargo vessels which have accommodations for limited numbers of passengers, such as the ubiquitous twelve-passenger freighters once common on the seas in which the transport of passengers is secondary to the carriage of freight. The type does however include many classes of ships designed to transport substantial numbers of passengers as well as freight. Indeed, until recently virtually all ocean liners were able to transport mail, package freight and express, and other cargo in addition to passenger luggage, and were equipped with cargo holds and derricks, kingposts, or other cargo-handling gear for that purpose. Only in more recent ocean liners and in virtually all cruise ships has this cargo capacity been eliminated. While typically passenger ships are part of the merchant marine, passenger ships have also been used as troopships and often are commissioned as naval ships when used as for that purpose.

Web Search Results

• Ocean Shipping Freight Market Update: June 2025 | C.H. Robinson

  A sharp decline in shipments, triggered by higher tariffs on China–U.S. trade imposed in April, prompted ocean carriers to implement aggressive blank sailings. Between mid-May and early July 2025, export routes to North Asia were expected to see a 40% reduction in sailings from the USEC and a 25% reduction from the USWC. [...] These routing adjustments have led to increased costs, prompting the implementation of emergency operational surcharges and general rate increases in June 2025. ### U.S.–Oceania Space availability on direct carrier services into Oceania has improved notably since the close of peak season, with rates continuing a gradual decline amid softened demand. With congestion easing at USEC ports, most carriers have resumed normal port rotations, signaling a return to schedule reliability on this lane. [...] Rail performance to and from the ports is stable, though expedited rail service remains limited. Expedited service from Vancouver is accessible if needed, but Prince Rupert continues to operate on a first-come, first-served basis. Shippers relying on this corridor should plan further in advance.

• Ocean Freight Market Report March 2025 - Bertling

  Freight rates from Shanghai to Los Angeles decreased to 2,658 USD per 40ft container and those from Shanghai to New York decreased to 3,774 USD per 40ft container. Similarly, rates from Rotterdam to New York reduced to 2,316 USD per 40ft container. (Drewry) Average spot rates from Far East to US continue to decline, down 33% and 35% into the US East Coast and US West Coast respectively in March compared to one month ago. (Xeneta) #### Outlook [...] Drewry anticipate a continued general decline in global container rates in the coming weeks. This is attributed to an expected increase in container shipping capacity, which could further soften freight rates across various routes. That includes new vessels entering service, and a possible return by major carriers to the Red Sea and Suez Canal. The Suez continues to be the wild card that could cause a marked decrease in rates if a reopening were to occur. [...] #### Impact on Freight Rates Freight rates continue to slide, whereas charter rates remain elevated, widening the charter-to-freight-rate gap to a record 289%. Global container spot rates have continued their decline as Drewry’s "World Container Index" dropped another ↓6,8% (or $173) and now trade at around 2,368 USD per 40-ft container. Charter rates remain elevated elsewhere, as the Harper Petersen Index (Harpex) traded around 2,072 points (↑72%, y/y) on 21 March. #### Outlook

• 2025 Ocean Freight Outlook - Xeneta

  2025 Ocean Freight Outlook =============== This website stores cookies on your computer. These cookies are used to improve our website and provide a more personalized experience to you. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Yes, I'm happy;) Decline;) Skip to content [...] Login Get Demo 2025 Outlook ============= #### INSIGHTS | OCEAN FREIGHT SHIPPING Image 3: 2025Outlook_Report The ocean freight market is on the brink of transformation. ----------------------------------------------------------- In 2025, you will have to navigate significant shifts in demand, alliances, and capacity, as the global supply chain adapts to new economic realities and environmental pressures.

• Shipping Delays & Freight Cost Increases 2025 - Freightos

  The recent China-US de-escalation in tariffs has triggered a significant rebound in ocean freight demand between China and the US, following a sharp decline in volumes due to the 145% tariffs imposed earlier. As a response, carriers have introduced General Rate Increases (GRIs) ranging from $1,000 to $3,000 per forty-foot equivalent unit (FEU), with further hikes planned. If carriers succeed, rates could reach up to $8,000/FEU, aligning closely with the peak rates of the Asia-US West Coast [...] Shipping Delays & Freight Cost Increases 2025 | Freightos =============== Cookie settings Skip to content Get Started Blog Table of Contents New Tariffs Update Red Sea Shipping Disruption News & Updates 2025 Red Sea Outlook Ocean Freight Market Updates, Shipping Costs, and Delays Ocean Freight Market Forecast for 2025 Air Freight Market Update, Delays, Cost Increases, and Forecast for 2025 Amazon Shipping Costs in 2025 When Will Shipping Costs Go Down? [...] For more about the Houthi Attacks in the Red Sea and Suez Canal disruptions, click here. Ocean Freight Market Updates, Shipping Costs, and Delays --------------------------------------------------------

• Understanding 2025 Ocean Freight Market Trends

  Freight rates remain a focal point for industry stakeholders. Shanghai container futures trading indicates that ocean freight rates on the Asia-Europe trade may fall in 2025 after peaking. Forecasts suggest that ocean cargo prices could reach $20,000 in 2025, potentially approaching the COVID-era peak of $30,000. Experts predict that rates may not see a significant decrease until early 2025, contributing to ongoing inflation in the market. Understanding these fluctuations is crucial for [...] Looking ahead, the ocean freight forecast 2025 predicts potential fluctuations in freight rates. Experts anticipate that rates may not see a significant decrease until early 2025, contributing to ongoing inflationary pressures. Strategic shippers, however, can leverage their insights to achieve cost reductions. By aligning with carriers and optimizing their shipping strategies, businesses can mitigate the impact of rising rates and maintain their competitive advantage. This proactive approach [...] #### Supply Chain Disruptions