Shipping rates start 2025 with a spike on tariff

Due to a strike that threatens to close ports that handle almost half of the country’s seaborne commerce volumes, spot container rates for transporting products from Asia to the US have increased over the past month as businesses try to avoid higher tariffs and boost their stocks. According to data from Xeneta, a freight website based in Oslo, the cost of booking a 40-foot container from Asia to the US West Coast was $6,000 as of January 1, a 50% increase from $4,004 a month earlier. The rate increased by 31% to $7,100 to the East Coast.

The market is becoming more volatile. “For shippers, 2024 was a very difficult year, and as we move into 2025, things aren’t getting any easier.” Due to Houthi attacks on ships with ties to the west, the world’s container fleet has largely avoided traveling via the Red Sea for more than a year. These detours are anticipated to last until safe passage is restored. For a large portion of 2024, container prices will be under pressure to rise due to the lengthier voyages’ decreased capacity.

The latest market difficulties are being driven by worries about future supplies. In addition to the higher taxes on American imports that President-elect Donald Trump has promised to levy on goods from China and other key trade partners, there is a danger of a strike at US East and Gulf Coast ports later this month. The majority of maritime transportation expenses are covered by long-term agreements between cargo owners and carriers rather than being paid at spot rates. However, long-term rate talks, which usually occur in the first part of the year, are influenced by the spot market