Container rates surging as shippers rush ahead of deadlines

Transpacific container rates to the West Coast doubled last week on June 1st GRIs to

US$5,488/FEU, with the latest daily rates above US$6000/FEU as shippers start peak season early and frontload goods ahead of tariff pause expirations in July and August.

Prices to the East Coast climbed 60% to US$6,410/FEU with the latest daily rates aboveUS$7,000/FEU, with rates on both lanes about even with levels a year ago when Red Sea-driven capacity restraints combined with an early peak season rush ahead of the ILA port strike threat to push prices up.

Carriers are planning additional transpacific GRIs of US$1,000 - US$3,000/FEU for mid-June and again on July 1st. China's ports are likely still working through some of the backlog of ready-to-ship goods created during the April-May lull in China-US demand.

In addition, some transpacific vessels and equipment that were shifted to other lanes in that period are still making their way back into place.

So as peak volumes for this year's peak season combine with still-restrained capacity and port congestion at several Far East hubs in the near term, much of these June and July rate increases are likely to take.