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MSC, the industry leader, plans to increase rates on the U.S. route in July: Western U.S. large containers to be lowered by $200 | Maritime Export Logistics
Jun 30,2025
Last week, several shipping companies signaled a July increase in freight rates, with one major shipping company spearheading plans for a $300 increase per crate (40-foot cabinet) on the US West and $1,100 on the US East, and others responding.
However, Mediterranean Shipping (MSC) did the opposite and announced a $200 price cut on the US Western line, a move that sent the forwarder industry into an uproar. The ultimate direction of freight rates depends on how Trump's reciprocal tariff policy evolves after the 90-day window for tariffs ends on July 9, the head of the US line noted.
According to industry sources, this month an alliance shipping company that had previously taken the lead in lowering U.S. freight prices unexpectedly proposed a price increase, shocking many freight forwarders. Although July and August are the traditional peak shipping season, and according to past experience, freight prices are expected to rise, but the current container ship market has added more than 20% capacity, and the situation of supply exceeding demand has caused MSC to choose to reduce prices, adding to the already murky July freight rates.
The head of a large consignment company analyzed that the current market volume was relatively small, but the volume was expected to pick up in July. If overtime ships are reduced and the supply and demand relationship tightens, freight prices are expected to rise. All of this, however, is shadowed by the end of a 90-day reprieve on the equivalent tariffs on July 9.
U.S. Deputy Treasury Secretary Michael Faulkender said that, in consultation with trading partners, the reciprocal tariffs would not return to the high level announced by Trump on April 2, but any rate above the current base rate of 10 percent would hit shipments. Due to the slow progress of the US-EU consultations, the industry generally hopes that the current 10% base tariff will be extended. Given the difficulties of high prices, inflation, unemployment and other conditions in the United States, an extension is more likely, but Trump has not made a clear statement and the market remains full of uncertainty.
The official further noted that freight prices are expected to climb if the moratorium is extended; Once a reciprocal tariff is introduced, even if it is only 10% in addition to the base tariff, most Asian industries will be unable to bear it, volumes will fall sharply, prices are unlikely to rise, and even freight prices may fall further.
The shipping company that led the price increase plans to raise the USS $2,800 from $2,500 and the Eastern $5,000 from $3,900, with other companies proposing to raise USS $2600-2,900 and Eastern $4,900-5,500, while MSC plans to reduce the USS from $2,500 to $2,300.
At the same time, new developments in the shipping market have attracted much attention. Last week it emerged that a non-affiliated shipping company might pull out of the USS Caribbean, but the company responded by saying it was operating as normal. This week, the Gemini Alliance opened a new non-stop U.S.-West route WC6, which began its first flight to Xiamen on June 24, and runs once a week, efficiently connecting the three hub ports of Xiamen, Busan and Longtan, and building a fast corridor to the West Bank of the United States for enterprises in Fujian and surrounding regions.
Emirates Shipping Line has joined the U.S. with the launch of its Sun Chief Express service, a direct flight connecting Seattle to Ho Chi Minh City and Sekou in Southeast Asia that will depart on July 22 and operate every two weeks.
Deutsche Maritime also announced the launch of an e-commerce fast line between South China and the West. On July 16, the ship will sail from Nansha, Guangzhou to WBCT Terminal in Los Angeles for 14 days. It will provide exclusive berths, special locks, as well as lifting weight and air space without booking in Los Angeles, becoming the first shipping company to provide "double free" in the port of destination.
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