Freight Markets Show Muted Reaction to Latest Tariff Developments

Freight markets showed a relatively muted response following last week’s significant trade announcements, a notable contrast to past market behavior during similar tariff events.

In previous tariff cycles, shippers rushed to move goods ahead of deadlines to avoid penalties. This time, however, that sense of urgency appears absent, even with the today's (August 7) tariff deadline. According to the latest report from Freightos, this lack of urgency may reflect fatigue among shippers who have already engaged in repeated rounds of frontloading, reducing the appetite for another pre-deadline shipping surge.

Trans-Pacific container rates to the U.S. West Coast have remained steady for three weeks, averaging $2,300 per forty-foot equivalent unit (FEU). Since August 1, daily spot rates have dipped slightly—by around $100. On the East Coast, rates fell 4% to $3,950 per FEU, marking the sixth consecutive week of declines. Meanwhile, trans-Atlantic rates have remained stable at approximately $1,900 per FEU, indicating continued balance in that trade lane.

Industry sources told FreightWaves that eastbound volumes from China are being impacted by several factors: ongoing blank sailings causing congestion and capacity imbalances, and cautious shippers holding back loaded containers at ports, effectively using terminals as temporary storage while they wait for greater clarity on tariffs.

Freightos noted that rates to Long Beach from Vietnam and India have remained largely unchanged since the August 1 announcement. However, shipments from Indonesia—where goods will be subject to a new 19% tariff starting today (August 7) — have seen rates rise by about 8%.

A potential rebound in trans-Pacific ocean demand may occur if a proposed 90-day tariff extension for China materializes. Still, analysts believe any resulting increase in volume is unlikely to match past peak-season surges, as much of the frontloading occurred earlier in the year. This suggests the height of the peak shipping season may already be behind us.

On the Asia–North Europe route, container rates have held steady at around $3,400 per FEU since early July, despite signs of a strong peak season and ongoing congestion—factors that would typically push rates higher. In contrast, rates on the Asia–Mediterranean corridor have slipped 4% to $3,263 per FEU, marking a seven-week decline and bringing prices below Asia–North Europe levels for the first time since last November.

Source: www.freightwaves.com