Industry analysis: Freight rates on shipping routes from Asia to the US are expected to continue to decline.

Industry experts say that due to excess capacity and changes in trade routes due to tariffs and geopolitical tensions, sea freight rates from Asia to the US are expected to continue to decrease by 2025, despite the possibility that rerouting of ships may somewhat limit the decline. Data from shipping analysis company Xeneta shows that since June 1st, average spot container freight rates from Asia to the US West Coast and East Coast have dropped by 58% and 46% respectively, with further decreases expected. Jarl Milford, a shipping analyst at Veson Nautical, also predicts that freight rates will steadily decline in the second half of the year, resulting in more vessels entering the market.