Ocean Freight Market
Amid the 90-day tariff pauses for China and other countries, there has been a significant increase in booking requests and capacity demand, with a notable Trans-Pacific capacity surge pushing down spot rates from niche carriers and new market entrants. In response to these heightened needs, carriers have strategically redeployed and adjusted vessel availability, incorporating 27 additional loaders that account for over 100,000 TEU of capacity scheduled for the latter half of June. Initial supply shortages have been resolved, easing the pressure on previously elevated spot rates. With China export volumes stabilizing while Southeast Asia demand holds strong, and as mid-June arrivals put pressure on US port, rail, and motor infrastructure, rates are likely to remain steady at current levels. However, Asia-West Coast rates may experience a sharp decline as the initial wave of volumes reaches US shores in June.
Red Sea diversions persist due to ongoing geopolitical tensions and instability in the Middle East. Despite this, recent discussions regarding ceasefires and regional de-escalation have alleviated some carrier concerns. As a result, service interruptions are anticipated to remain consistent with current patterns.
Trans-Pac General Rate Increases (GRI):
June 1 GRI partially implemented.
June 15 GRI cancelled.
July 1 GRI announced.
Airfreight Market
The recent surge in demand and booking requests has driven increases in spot rates last few weeks. Ongoing instability in the Middle East, particularly affecting Red Sea routes, has led to rerouted flights and capacity adjustments, further contributing to market volatility. Carriers have leveraged this uncertainty to raise weekly rates. With shippers accelerating freight loading and rushing shipments amid the ongoing 90-day USA/China tariff pause. Capacity is expected to remain scarce, so we continue to recommend securing bookings early and exploring spot rates to ensure space allocation.
The U.S. Market
Market Overview:
During the current 90-day tariff suspension, the China-US trade deal has announced but has yet to be finalized and awaits implementation, while the mutual tariff pause with all other nations is scheduled to end on July 9, 2025, unless new trade agreements are announced. This suspension, alongside the China-US tariff cut, has encouraged shippers to accelerate freight loading and boost production, fueling a sharp rise in demand for last-mile delivery services from port to destination. Truckers have noted a substantial increase in delivery requests, driven by heightened activity in both air and ocean freight sectors. The recent spike in cargo volumes over the past few weeks is likely to worsen port congestion and cause delays, especially given persistent trucker shortages. Elevated demand is expected to continue throughout the tariff suspension period, with ongoing issues potentially lingering until new trade deals alter the current dynamics.
On June 9, 2025, the US House of Representatives approved the Maritime Supply Chain Act, which was forwarded to a Senate committee for further review as of June 10, 2025, though its ultimate approval and enactment are still pending.
All Janel Group offices will close July 4th in observation of Independence Day. Normal offices hours will resume July 5. We wish everyone a Happy and safe Fourth of July!
USWC: Increased volumes reported, container processing delays and port congestion reported.
USEC: Increased volumes reported, port congestion and delays ongoing.
USMW: Container transfer from port to rail reported, expect longer lead time due to port congestion.
USSW: Increased volumes reported, container processing delays and port congestion reported.
Janel Group continues to closely monitor the market and port situation. Updates will be provided as they become available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.
Director of Procurement and Strategic Partnerships
Sr. Pricing & Commercial Support Analyst