Summary

This week saw continuing rate declines across the trans-Pacific, driven by softening demand and increased carrier capacity. Carriers are actively managing capacity via blank sailings, especially on Asia–North America trades, while port congestion remains a key operational pressure point, particularly at U.S. gateway ports. Importers should note that new General Rate Increase (GRI) announcements are struggling to gain traction amid an oversupplied market, underscoring the need for flexible short‑term contract strategies.

Highlights:

• Spot rates on Asia–US trades have declined again, marking six straight weeks of decreases.
• Blank sailings are moderating, with carriers reducing cancellations to realign capacity with subdued demand.
  
  

Capacity & Congestion

Blank sailings on Asia–North America lanes have continued but at a slower pace, with cancellations expected to fall approximately 44% in July compared to June. The majority of these cancellations remain concentrated on the trans-Pacific eastbound lanes.

Capacity utilization is gradually stabilizing. Carriers had expanded available space earlier in the summer, leading to oversupply; now they are pulling back through fewer blank sailings and shifting vessels to alternate trades to balance load factors.

Port congestion continues to impact cargo flow. While schedule reliability has improved and most departures are now sailing as planned, vessel wait times and inland container dwell remain problematic, especially at major U.S. West Coast and East Coast ports.

Highlights:

• Blank sailings on trans‑Pacific routes down ~44% in July vs June.
• Capacity rebalancing underway; utilization gradually improving.
• Schedule reliability up to ~93%, but congestion at major U.S. ports remains.
  
  

Pricing & Rates

Spot rates on the trans‑Pacific continue their downward trend. Market data indicates a 2–3% week-over-week decline, with West Coast rates dropping approximately 37% over the past two weeks. East Coast rates are also softening, though they remain more resilient.

Despite mid‑month GRI announcements from several carriers, these increases have not materialized in the market due to softening demand and excess capacity. Carriers are expected to revisit pricing strategies if the rate erosion continues into August.

Some stability is emerging as carriers cut back on excess capacity, but market fundamentals suggest continued downward pressure unless demand picks up or blank sailings increase again.

Highlights:

• Trans‑Pacific spot rates down ~2–3% this week; six consecutive weeks of declines.
• Rates to USWC down ~37% in two weeks; USEC softer but stable.
• GRI announcements facing enforcement challenges due to overcapacity.
  
  

Carrier Strategy & Service Updates

Carriers are now shifting focus from aggressive blank sailings to selective redeployments, particularly moving capacity toward Asia–Europe lanes, where demand is showing more resilience. This reflects efforts to rebalance vessel allocation across trade routes to maximize utilization.

Global schedule reliability has improved modestly, with roughly 93% of sailings departing on time. While this is a positive trend, carriers remain cautious due to unpredictable demand patterns and tariff policy fluctuations.

No new service launches or major withdrawals were announced this week, signaling a period of tactical network optimization rather than structural change.

Highlights:

• Alliance networks reallocating capacity toward Asia–Europe amid stronger rate environment.
• Schedule reliability stable at ~93%.
• Carriers maneuvering vacant slots to balance lanes and protect pricing.
  
  

Operational Disruptions

No major disruptions occurred this week. Port operations remain strained at key U.S. and Canadian gateways, where ongoing congestion is slowing inland cargo movement. However, no significant weather events or equipment shortages were reported.

Trucking and chassis availability are stable, although low container volumes have led to reduced inland drayage activity in some corridors.

Highlights:

• No new major disruptions; operational stress persists at crowded gateway terminals.
• Equipment availability generally stable; inland drayage utility faces weakness.
  
  

Closing Note

Importers in the U.S. and Canada should closely monitor blank sailing activity on Asia–U.S. routes. Reductions in sailings may point to further softening demand, which could keep rates under pressure through August. Consider locking in flexible short‑term rates while the market remains in a downward trend.

Additionally, given the persistent congestion at gateway ports, especially in Southern California and the East Coast, shippers may benefit from alternative routing strategies or inland port utilization to improve delivery reliability. Keeping a close eye on capacity and schedule shifts remains essential to mitigate delays and maintain cost control.