Shipping container rates from east Asia and China to the United States continued to climb as importers accelerated shipments ahead of potential new tariffs, according to a report from ICIS. Meanwhile, liquid tanker rates softened amid a tentative ceasefire in the Middle East.

Read also: Shipping Container Rates from Asia to US Rise Again Amid Iran Conflict and Peak Season

Strait of Hormuz Developments

Vessel traffic through the Strait of Hormuz increased this week following a six-day ceasefire between the United States and Iran. However, the 8,500 TEU container vessel Ever Lovely was struck by a projectile on 25 June, prompting the International Maritime Organization to suspend its evacuation process. Lars Jensen, president of consultancy Vespucci Maritime, noted that Iran has not claimed responsibility for the attack, while a U.S. official attributed the incident to Iran. According to the Strait of Hormuz tracker, 12 vessels transited the waterway in the past 24 hours.

Current U.S. President Donald Trump accused Iran of the attack in a social media post and described it as a violation of the agreement. Iranian state news agencies reported that three foreign tankers attempting an unauthorized passage through the strait were turned back after a military warning. Iran’s Deputy Foreign Minister Kazem Gharibabadi warned on social media that Tehran will reject any parallel shipping routes or maritime decision-making that bypasses its authority as a key coastal state.

Container Rate Surge

Transpacific container rates spiked again this week, with prices ranging from $5,200 to $6,200 per FEU to the West Coast and from $6,300 to $7,500 per FEU to the East Coast. Supply chain advisors Drewry reported a 12% increase from Shanghai to Los Angeles and a 6% rise from Shanghai to New York. Year-on-year, Drewry’s rates to the East Coast are up 25%, and rates to the West Coast are up 54%. Drewry attributed the robust transpacific demand to importers frontloading shipments ahead of potential tariff changes and higher bunker-related costs. The firm expects rates to rise further in the coming weeks as general rate increases and peak season surcharges are scheduled for July.

Rates from online shipping marketplace Freightos increased by 19% to the West Coast and by 13% to the East Coast. Judah Levine, head of research at Freightos, said rates continue to climb as peak demand from an early busy season keeps vessels full at least into July. Levine added that spot rates will begin to ease from current or near-term levels as demand decreases, regardless of developments in the Strait.

The New York Shipping Exchange Freight Index surged by 23% to both the West Coast and the East Coast. The Shanghai Containerized Freight Index, which tracks rates for containers leaving Shanghai, rose by 3.7% and is now approximately 2.5 times the level seen at the start of the U.S.-Iran conflict.

Container ships and container shipping costs are relevant to the chemical industry because, while most chemicals are liquids shipped in tankers, container vessels transport polymers such as polyethylene and polypropylene in pellet form, as well as titanium dioxide.

Tanker Rate Decline

U.S. chemical tanker freight rates assessed by ICIS were mostly lower, with decreases from the U.S. Gulf across most trade lanes. Most market participants remain cautious, awaiting resolution of the ongoing Middle East conflict. Rates on the U.S. Gulf to Rotterdam route plunged on weaker demand, partially offset by limited availability, especially for larger parcels. Space among regular carriers remains scarce, and contract of affreightment nominations have utilized most available tonnage.

Larger requirements continue to be well represented, with several large lots of methanol and ethanol fixed or indicated to the ARA region. Some interest was also noted for smaller lots of various chemicals. From the U.S. Gulf to Asia, the market remains uneventful, resulting in lower freight ideas. Very few new inquiries were reported over the past week, though a large parcel of ethanol was quoted for a second-half July lifting. For the U.S. Gulf to South America trade lane, the market weakened further as rates continued to be pressured lower. Very few cargoes are being fixed by charterers due to a lack of buyers in the region. The market is strongly supported by solid COA nominations, which naturally pushes spot rates even lower. On the bunker side, fuel prices were lower amid the continued decline in energy prices.

Source: IndexBox Market Intelligence Platform