EU Tariffs and Middle East Tensions Damp European Shipping Rates

Container freight rates rose 3% on a weekly basis, reaching an average of $4,255 per forty‑foot equivalent unit. Prices fell on the trans‑Pacific Shanghai–Los Angeles lane (‑2% to $5,739) and declined on Shanghai‑Genoa and Shanghai‑Rotterdam spot routes. Carriers are curbing capacity with blank sailings and have added an Emergency Fuel Surcharge after the escalation of Middle‑East geopolitical tensions.

At the same time, the European Union’s temporary levy on small parcels has slashed air‑freight volumes from China to Europe by about 11% year‑on‑year in mid‑July. The decline is strongest for shipments from Hong Kong, down 24% YoY, while flows from mainland China fell 10% YoY. Air‑freight spot rates dropped 5% to $4.17 per kilogram, still 8% above last year’s level. Similar reductions were reported from Vietnam (‑9%) and Thailand (‑11%). The combined effect is a noticeable slowdown in both maritime and air logistics to Europe.