Asia-North America Container Freight Surpasses $7,900, Market Focus No Longer on Hormuz

Container freight rates on the Asia-North America route have surpassed $7,900/FEU as peak season demand surges, shifting the market focus from risks in the Strait of Hormuz to supply and demand pressures.

After weeks overshadowed by tensions in the Strait of Hormuz, the focus of the global container shipping market is gradually shifting back to supply and demand. Rising freight rates, early peak season demand, and continuous adjustments to shipping networks are now dominating market developments more than geopolitical risks in the Middle East.

Fares Rise Sharply on Trans-Pacific Routes

SONAR's Ocean Supply

According to data from Freightos – the data provider for the SONAR maritime market analysis platform – freight rates on this route... Asia – West Coast of the United States (USWC) increased by 8%, reaching 6.175 USD per 40-foot container (FEU). Meanwhile, the Asia-East Coast US (USEC) route also recorded a similar increase of 8%, reaching 7.998 USD/FEU.

This increase comes as Iran continues to assert its claim to control maritime traffic through the Strait of Hormuz, even as negotiations toward a final peace agreement with the US continue.

In a note to clients, Judah Levine, Head of Research at Freightos, stated: “Oil exports from Gulf states are recovering, although shipping traffic was disrupted following Iranian attacks on transit vessels as well as targets in Bahrain and Kuwait.”

In fact, the IMO-coordinated evacuation of ships and crews remains on hold following attacks on commercial vessels in the region. However, as crude oil flows from the Gulf gradually resume, the primary driver of container freight rates is now driven by peak season demand, rather than fluctuations in oil prices.

Explaining this development, Mr. Levine said: "This year's peak season started early, causing freight rates on East-West routes to increase sharply since mid-May."“

He also added: "Shipping companies are shifting capacity from secondary routes to serve high-demand routes, which in turn contributes to pushing up freight rates on secondary routes."“

Shipping Companies Adjust Their Operating Networks

To adapt to changing market conditions, shipping lines are constantly adjusting their service networks. Recently, ZIM launched a new shipping route connecting Asia with the East Coast of South America, while Hapag-Lloyd updated its vessel rotations across multiple service routes.

Furthermore, the trend of expanding fleet size and continuing to order new ships is being maintained, indicating that shipping companies are striving to balance expanding operational capacity and allocating carrying capacity to meet the growing transportation demand.

Since mid-May, freight rates on trans-Pacific container shipping routes have risen sharply. Freight rates from Asia to the US West Coast increased by approximately 1201 TP3T, while the Asia-to-US East Coast route saw an increase of approximately 851 TP3T. During the same period, freight rates from Asia to Northern Europe increased by approximately 701 TP3T, and the Asia-to-Mediterranean route increased by approximately 851 TP3T.The wave of early imports continues to sustain the upward trend in freight rates. According to Freightos, importers' confidence in consumer purchasing power continues to be a factor sustaining high demand for transportation services.

Judah Levine stated: “Trans-Pacific freight rates to the U.S. East Coast are currently about $1,000/FEU higher than the peak of last year’s early import wave, while rates to the U.S. West Coast have slightly surpassed their 2025 peaks. Meanwhile, rates from Asia to Northern Europe and the Mediterranean are now about $1,300/FEU and $3,000/FEU higher, respectively, than last year’s peak season.”

This development is also consistent with consumer trends in the US. According to the National Retail Federation (NRF), 321 consumers began back-to-school shopping as early as June, up from 261 in the same period of 2025. This is seen as a positive sign for the demand for imported goods to serve the year-end shopping season.

However, the surge in cargo volume is also putting pressure on many major transit hubs in South Asia, the Far East, and Europe. Congestion at many major transshipment ports is shrinking the available carrying capacity in the market, thereby further pushing freight rates upwards.

This surge in early imports stems from several factors, including shippers proactively bringing goods in before shipping companies adjust fuel surcharges, manufacturers raising prices, and especially to avoid the implementation of new US tariff policies.

Forecasting the course of this year's peak season, Mr. Levine stated: "If more and more shippers push their peak season import plans forward, the market could cool down earlier than usual, possibly even as early as July."“

However, he also noted that prolonged congestion at many major ports could keep shipping demand high for longer than expected.

Commenting on future market developments, Judah Levine said: “Shipping companies are expected to continue raising freight rates from the beginning of July. The success of these adjustments will reflect which stage of this year’s peak season the market is currently in.”