A Tale of Two Different Ocean Freight Peak Seasons

This year’s ocean freight peak season is developing very differently across the major east–west trade lanes.

While peak demand between Asia and Europe is now tapering off, the transpacific market remains strong, with the traditional seasonal surge seemingly extended.

The Asia–Europe peak season began unusually early, with volumes and rates increasing from mid-May as shippers brought orders forward to avoid anticipated cost increases and potential disruption. Demand reached its height during July but has since softened.

However, conditions between Asia and North America have followed a different course. Demand has remained more resilient than anticipated, despite expectations that volumes would fall following earlier tariff-related frontloading. On some routes, rates have actually increased recently, with particularly strong pressure on services to the US East Coast.

Carrier capacity reductions and blank sailings have intensified the competition for available space, with shipping lines carefully managing allocations.

Further pressure is coming from the Panama Canal, where El Niño-related dry weather and declining water levels are forcing restrictions on daily vessel transits. Carriers have already introduced surcharges on some services using the canal, while the prospect of further restrictions during September could affect capacity, schedules and costs between Asia and the US East and Gulf Coasts.

As previously reported, congestion at major Chinese ports following a succession of storms is creating additional complications. Vessel delays, port omissions and disrupted schedules are affecting services across multiple trade lanes.

Westbound’s UK and Asia offices continue to monitor capacity, rates and schedule reliability across the region and will keep customers informed of significant developments.