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Shipping Rates Plunge to Pre-Crisis Levels Despite Red Sea Attacks
22 Aug
Summary
- Trans-Pacific container rates hit lowest levels since 2023 Red Sea crisis
- Overcapacity and tariff pressures batter Asia-U.S. freight rates
- East Coast prices also nearing pre-crisis levels
As of August 22nd, 2025, benchmark container rates on the trans-Pacific trade from Asia to the U.S. West Coast have fallen to their lowest levels since the start of the Red Sea crisis in late 2023. This is despite the fact that the Houthi rebels in Yemen have resumed attacks on merchant vessels, leading most major container lines to write off a return to the Suez Canal route in 2026.
The plunge in Asia-West Coast ocean freight rates has been driven by a combination of tariff pressures and overcapacity in the market. Analyst Judah Levine of Freightos noted that East Coast prices are also "within striking distance" of their pre-Red Sea crisis levels, suggesting that carriers are still grappling with excess capacity.
The drop in rates comes even as the U.S. government extended a temporary reduction in tariffs on Chinese exports, which had triggered a surge in trans-Pacific freight demand and rates earlier this year. While some supply chain professionals expect another peak season bump, others believe this year's peak is already behind us, and the container rate trends seem to support that view.
