Trans-Pacific Container Shipping Market: Differentiating Pricing Strategies Amidst a "Quiet" Situation

The Trans-Pacific (Asia-North America) container shipping market in week 29/2025 (from July 14 to July 20) is witnessing an unusually "quiet" state, with flat demand and abundant capacity supply. The most notable thing is no longer the downward trend in freight rates, but the clear differentiation in shipping lines' pricing strategies as they face a prolonged situation of excess capacity.

Abundant Supply, Stable Demand at Low Levels: A “Quiet” Peak Season

Typically, mid-July is when the market starts to get excited in preparation for the year-end peak season. However, this year is different. Forecasts show that demand will continue to be flat throughout July and August. The main reason is that the wave of early imports in Q2 has “drained” a large part of the demand from the traditional peak season. The market is now stable, but at a not-so-impressive level of output.

On the supply side, excess capacity is still the main story. The exploitation capacity in July remained high (80%-90%). Although there was a slight decrease in the plan for August (to 75%-86%), this level still shows that the market has a significant surplus of capacity compared to current demand. In other words, space is open.

In addition, a new operational bottleneck has emerged at key transshipment ports in Malaysia and Singapore.
 
Congestion there is causing delays of 3 to 5 days for services originating from Southeast Asia compared to the scheduled schedule. This requires businesses to make adjustments in their shipping plans.

Freight Rates

Ocean Freight rates from Asia to the West Coast of North America in the week of 29/2025 continued to decline sharply by 6.23% compared to the previous week, to USD 2,243/FEU. This price is down 52.05% compared to the previous month, according to Xeneta data.

Asia-North America Freight Rates | Week 29/2025 (Photo: Phaata.com)

The freight market is no longer on a uniform trend. We are witnessing a clear differentiation in the pricing strategies of shipping lines:

•    Some shipping lines are still determined to maintain prices by announcing and applying General Rate Increases (GRI) for July 15. This reflects their efforts to protect their rates and margins.

•    In contrast, other carriers, in order to compete and fill the gap, are extending old rates or launching short-term "bullet rates".

The result of this differentiation is that the rate spreads for West Coast destinations are widening, creating golden opportunities for importers who know how to "hunt" for prices.

For the East Coast and Gulf, the market tends to be more homogeneous. Floating rates and Peak Season Surcharges (PSS) have both been adjusted downward in July, reflecting the general downward pressure on these routes.

In terms of container shells, supply at most ports of origin remains abundant, with no signs of worrying shortages.

Buyers' Market, But Requires Skill

Clearly, the Asia-North America market remains a "buyers' market," but the differentiation in shipping lines' pricing strategies requires importers and exporters to do more research and compare to get the best deal.

One point to note is that the operational challenge has shifted from the port of origin to the port of departure. Whereas congestion at US ports was the problem before, now the risk of delays comes from transshipment ports in Southeast Asia.

The fact that some shipping lines are still trying to apply GRI is a sign of the future: they do not want to let rates fall too far and are ready to tighten capacity if necessary. The slight capacity decline in August is an early signal of this strategy.

Given the current market situation, Phaata has a few recommendations for import-export businesses and logistics companies:

• Take advantage of differentiation to "hunt" for good prices: This is an ideal time for importers to request quotes from many different service providers. Do not assume that all shipping lines have the same price. The difference can be significant, especially for shipments to the West Coast.

• Note the Risk of Operating from Southeast Asia: For shipments originating or transiting through Southeast Asia, businesses need to add a "buffer" of 3-5 days to their plans. Carefully consider the price and schedule reliability when choosing a service.

• Q3 Forecast: The slight capacity decline in August is a signal that shipping lines are trying to rebalance the market before the real peak of goods for the year-end holidays. This “calm” market probably won’t last past September. Use this period wisely, but start planning for a market that will likely tighten later in Q3.

See more:

• Container Shipping Market Outlook for H2 2025
• Port of Oakland Container Volume Down 10% in June
• China's shipbuilding market share to fall 20% amid USTR port fee concerns
• US tariffs cast shadow over air cargo industry in Penang, Malaysia
• WorldACD: Air Freight Demand Falls in a Volatile Week
• FMC Investigates Port of Houston Agreements with Container Lines
• Global trade resilient to policy shifts and geo-economic risks
• COSCO schedules: Vietnam - North America in Jul 2025
• SITC updates Vietnam-Intra Asia sailing schedules in Jul 2025

Source: Phaata.com 

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