Freight rates have dropped and many airlines have cancelled flights
Recently, after a wave of concentrated rush transportation by shippers, they have not been in a hurry to continue placing orders but have chosen to wait for the further clarification of the US tariff policy. This phenomenon has instead intensified the market's concerns about excessive transportation capacity. Meanwhile, shipping companies have also intensified their efforts to control shipping space by suspending services to safeguard freight rates, resulting in a recent trend of slight fluctuations and mixed ups and downs in freight rates.
According to a survey conducted by foreign media among institutions such as the US Chamber of Commerce and the National Retail Association from the 7th to the 10th, as high as 89% of US enterprises have cancelled orders due to tariff issues, and 75% of enterprises expect that tariffs will reduce the spending of US consumers.
The tariff issue between China and the United States is deadlocked. To deal with the predicament and protect freight rates, shipping companies have begun to suspend or adjust services on Trans-Pacific routes. According to the records of HLS Group, 80 cargo ship flights departing from China have been cancelled. Japanese shipping giant ONE has suspended a route that was originally scheduled to resume in May, and another route has also cancelled calls to the Port of Wilmington in the United States. Ocean Alliance (OA) Shipping Company has informed that all three routes it operates bound for Los Angeles will be completely suspended by the end of April. The resumption time is undetermined and there is no guarantee of cargo shipping schedules. The non-Ocean Alliance shipping company ZIM has decided to suspend operations for two months.
The cancellation of flights has caused a chain reaction to US ports and related industries. The demands for port lifting operations, truck and railway freight transportation, warehousing, etc. have all been severely affected. Each ship was originally capable of carrying 8,000 to 10,000 TEUs. The cancellation of 80 flights is equivalent to a reduction of approximately 640,000 to 800,000 TEUs, resulting in a decrease in the volume of port lifting operations, a reduction in related costs, and a weakening of freight and warehousing demands.
In response to the rumor circulating in the market that the 90-day suspension of the US reciprocal tariffs might trigger a rush to buy shipping space, overloading and price hikes, many freight forwarders have stated that such a situation has not occurred. The current market is in a state where "all goods have been dispatched, waiting for the policy to become clear, and there is no rush to place orders". Most importers and brand owners have completed their stock preparations in advance and are waiting for further clarification of the tariff policy.
Therefore, there has emerged a phenomenon of excessive transportation capacity in the market. Although the Red Sea bypass has absorbed some capacity in the short term, in the long run, the pressure of oversupply still exists. To this end, shipping companies have turned to adopt the "Blank Sailing" strategy to control capacity and stabilize freight rates. Currently, the freight rates for the West Coast route of the United States are approximately $2,100, those for the East Coast route are $3,100, and those for the European route range from $1,800 to $2,000. Logistics industry insiders point out that the demand for goods in North America has not vanished. Postponing shipments will only intensify the pressure of space competition when future demand is released.
Especially for the US routes, which are in the final stage of long-term contract signing, in order to stabilize the spot price and support the long-term contract price, cabin control has become one of the main means for shipping companies. According to a report by shipping consultancy Dreurry in early April, under the panic of high tariffs, US traders were hesitant to continue importing goods from Asia, resulting in reduced volumes and the cancellation of more voyations.
In March and April this year, a total of 198 voyages on the Asia-North America, transatlantic and Asia-Europe routes were cancelled, far exceeding the 135 voyages in the same period of 2024. Among them, the cancellation volume of the Asia-North America route is particularly prominent. It is expected that within the next five weeks, the proportion of cancelled voyages on this route will soar to 56%.
SCFI freight rate
The freight rate from Shanghai to Europe is 1,316 US dollars per TEU, down 40 US dollars, with a weekly decline of 2.95%.
The freight rate from Shanghai to the Mediterranean is 2,161 US dollars per TEU, increasing by 19 US dollars, with a weekly increase of 0.79%.
The freight rate from Shanghai to the West Coast of the United States is $2,103 per FEU, down $99, with a weekly decline of 4.5%.
The freight rate from Shanghai to the East Coast of the United States is 3,251 US dollars per FEU, increasing by 25 US dollars slightly, with a weekly increase of 0.77%.
The freight rate per container on the Persian Gulf route was $12,661,309, down $43, representing a weekly decline of 3.3%.
The freight rate for the South American route (Santos) is $1,573 per container, a slight increase of $7, and a weekly increase of 0.4%.
The freight rate per container on the Australia-New Zealand route is 891 US dollars, increasing slightly by 0.1%.
In terms of the near-sea route, the price per TEU from the Far East to Southeast Asia rose by 3 US dollars compared with the previous period, an increase of 0.67%. The price per TEU from the Far East to Kansai, Japan and from the Far East to Kanto, Japan each dropped by 6 US dollars compared with the previous period, while the price per TEU from the Far East to South Korea remained the same as the previous period.
According to a survey conducted by foreign media among institutions such as the US Chamber of Commerce and the National Retail Association from the 7th to the 10th, as high as 89% of US enterprises have cancelled orders due to tariff issues, and 75% of enterprises expect that tariffs will reduce the spending of US consumers.
The tariff issue between China and the United States is deadlocked. To deal with the predicament and protect freight rates, shipping companies have begun to suspend or adjust services on Trans-Pacific routes. According to the records of HLS Group, 80 cargo ship flights departing from China have been cancelled. Japanese shipping giant ONE has suspended a route that was originally scheduled to resume in May, and another route has also cancelled calls to the Port of Wilmington in the United States. Ocean Alliance (OA) Shipping Company has informed that all three routes it operates bound for Los Angeles will be completely suspended by the end of April. The resumption time is undetermined and there is no guarantee of cargo shipping schedules. The non-Ocean Alliance shipping company ZIM has decided to suspend operations for two months.
The cancellation of flights has caused a chain reaction to US ports and related industries. The demands for port lifting operations, truck and railway freight transportation, warehousing, etc. have all been severely affected. Each ship was originally capable of carrying 8,000 to 10,000 TEUs. The cancellation of 80 flights is equivalent to a reduction of approximately 640,000 to 800,000 TEUs, resulting in a decrease in the volume of port lifting operations, a reduction in related costs, and a weakening of freight and warehousing demands.
In response to the rumor circulating in the market that the 90-day suspension of the US reciprocal tariffs might trigger a rush to buy shipping space, overloading and price hikes, many freight forwarders have stated that such a situation has not occurred. The current market is in a state where "all goods have been dispatched, waiting for the policy to become clear, and there is no rush to place orders". Most importers and brand owners have completed their stock preparations in advance and are waiting for further clarification of the tariff policy.
Therefore, there has emerged a phenomenon of excessive transportation capacity in the market. Although the Red Sea bypass has absorbed some capacity in the short term, in the long run, the pressure of oversupply still exists. To this end, shipping companies have turned to adopt the "Blank Sailing" strategy to control capacity and stabilize freight rates. Currently, the freight rates for the West Coast route of the United States are approximately $2,100, those for the East Coast route are $3,100, and those for the European route range from $1,800 to $2,000. Logistics industry insiders point out that the demand for goods in North America has not vanished. Postponing shipments will only intensify the pressure of space competition when future demand is released.
Especially for the US routes, which are in the final stage of long-term contract signing, in order to stabilize the spot price and support the long-term contract price, cabin control has become one of the main means for shipping companies. According to a report by shipping consultancy Dreurry in early April, under the panic of high tariffs, US traders were hesitant to continue importing goods from Asia, resulting in reduced volumes and the cancellation of more voyations.
In March and April this year, a total of 198 voyages on the Asia-North America, transatlantic and Asia-Europe routes were cancelled, far exceeding the 135 voyages in the same period of 2024. Among them, the cancellation volume of the Asia-North America route is particularly prominent. It is expected that within the next five weeks, the proportion of cancelled voyages on this route will soar to 56%.
SCFI freight rate
The freight rate from Shanghai to Europe is 1,316 US dollars per TEU, down 40 US dollars, with a weekly decline of 2.95%.
The freight rate from Shanghai to the Mediterranean is 2,161 US dollars per TEU, increasing by 19 US dollars, with a weekly increase of 0.79%.
The freight rate from Shanghai to the West Coast of the United States is $2,103 per FEU, down $99, with a weekly decline of 4.5%.
The freight rate from Shanghai to the East Coast of the United States is 3,251 US dollars per FEU, increasing by 25 US dollars slightly, with a weekly increase of 0.77%.
The freight rate per container on the Persian Gulf route was $12,661,309, down $43, representing a weekly decline of 3.3%.
The freight rate for the South American route (Santos) is $1,573 per container, a slight increase of $7, and a weekly increase of 0.4%.
The freight rate per container on the Australia-New Zealand route is 891 US dollars, increasing slightly by 0.1%.
In terms of the near-sea route, the price per TEU from the Far East to Southeast Asia rose by 3 US dollars compared with the previous period, an increase of 0.67%. The price per TEU from the Far East to Kansai, Japan and from the Far East to Kanto, Japan each dropped by 6 US dollars compared with the previous period, while the price per TEU from the Far East to South Korea remained the same as the previous period.
