This peak season is anything but ordinary. Despite robust shipping demand, ocean freight rates on the main East-West trade lanes are plummeting. On the Transpacific, spot rates surged above $6,000/FEU to the U.S. West Coast in June, only to collapse to ~$1,700–2,300/FEU by mid-August. Rates to the East Coast dropped to ~$2,700–3,400/FEU.
Similarly, Asia–Europe spot rates are down ~60% year-on-year, with Asia–Northern Europe lanes holding at ~$3,300–3,500/FEU, and Mediterranean routes sliding to ~$3,100–3,300/FEU.
Why the freefall? Overcapacity, early frontloading of cargo due to tariff fears, and a struggle among carriers to maintain supply discipline.
Yet amid this pricing slump, one truth stands out: supply chain visibility is more essential than ever. In today’s soft market, visibility isn’t about negotiating lower freight costs, it’s about protecting margins, meeting compliance obligations, and maintaining operational agility.
This blog explores why logistics visibility is the differentiator that will define tomorrow’s resilient, future-proof supply chains.
Why Freight Rates Are Falling, Even During Peak Season..?
The collapse in freight rates defies seasonal logic. Several forces are converging to reshape the ocean freight landscape:
- Transpacific Trade Trends: After a tariff-induced spike in June, Transpacific rates have sharply declined. As of August, spot rates on the U.S. West Coast dipped below $2,000/FEU, with some daily quotes near $1,700. The East Coast saw similar declines.
- Asia–Europe Routes: Despite healthy cargo volumes and ongoing Red Sea disruptions, spot rates remain roughly 60% lower than last year. The influx of new capacity is diluting price support.
- Fleet Expansion: In the first half of 2025 alone, ~1.18M TEU was added to the global fleet, bringing total capacity to 32.7M TEU. The orderbook remains heavy, outpacing demand.
- Increased Sailings: Carriers like Maersk and Hapag-Lloyd maintained a 100% sailing record on their Gemini network in August. With fewer blank sailings, supply has swelled.
- Improved Schedule Reliability: On-time performance rose to ~67% in June 2025, the best since 2023. With fewer delays and less rolled cargo, effective capacity has grown.
- Tariff Whiplash: Anticipated tariff changes drove an early-season volume surge. As the market normalized, demand softened, creating a post-peak lull.
- Port Congestion Relief: Terminal yard utilization at Northern European ports like Antwerp and Rotterdam has eased, removing a key rate support pillar.
- Cape of Good Hope Diversions: Initially tightened capacity, but the deployment of extra vessels and loops by carriers has more than offset the impact.
In short, the industry is experiencing a mismatch between capacity and actual demand. And as price pressure intensifies, operational performance and data-driven agility matter more than ever.
Why Visibility Still Matters When Freight Rates Fall
In a falling-rate market, visibility shifts from a cost-avoidance tool to a strategic lever. Here’s why supply chain visibility remains mission-critical:
- Margin Protection: Freight costs may be low, but the risk of hidden expenses from delays, demurrage, and misrouted containers still looms. Real-time visibility allows forwarders and shippers to proactively manage handovers, resolve disruptions early, and avoid unnecessary charges.
- Customer Retention: When rate quotes look alike, service quality sets you apart. Providing customers with real-time updates, reliable ETAs, and exception alerts builds trust, especially when competitors offer little more than a rate.
- Capacity Planning: In a market where capacity decisions shift rapidly, visibility helps logistics teams adapt quickly to blank sailings, vessel reroutes, or changes in port schedules. The ability to pivot with data is essential for maintaining flow.
- Compliance and Reporting: Even as freight costs decline, compliance costs are climbing. Regulations like the EU ETS, FuelEU Maritime, and CSRD demand accurate emissions data. Without visibility into routes, vessel types, and transshipments, compliance becomes guesswork.
- Emissions Tracking: Visibility platforms provide the factual basis for calculating CO₂e output. This is especially important as emissions are now priced into operations. and tracked by regulators.
- Future-Proofing: Rates may be falling, but volatility isn’t going anywhere. Whether due to climate policy, geopolitical tensions, or sudden demand spikes, change is constant. Visibility builds operational muscle to absorb shocks and recover faster.
Ultimately, supply chain visibility is not a cost center, it’s a competitive moat.
Real-Time Visibility with Dockflow
While many companies still rely on manual updates and spreadsheets, modern logistics requires a unified platform built for complexity and speed. Dockflow provides freight forwarders and logistics teams with real-time, end-to-end visibility across every leg of a shipment’s journey.
By integrating live GPS, AIS, carrier schedules, and port data, Dockflow transforms shipment tracking from a reactive chore into a proactive strategic tool. Our platform delivers granular insights into vessel locations, ETAs, and potential disruptions, allowing teams to manage exceptions before they become problems.
This real-time intelligence is the key to operational agility. It empowers teams to provide customers with reliable updates, optimize capacity planning, avoid demurrage and detention charges, and make data-driven decisions that protect margins.
With Dockflow, the entire supply chain is no longer a black box. It becomes a source of clarity, confidence, and competitive advantage.
Conclusion
Freight rates may be falling, but strategic transparency is rising. In a volatile, oversupplied market, price is no longer the only currency. Accuracy, agility, and emissions accountability matter more than ever.
Supply chain visibility is not about chasing the cheapest option, it’s about building a smarter, more resilient business.
And in this new normal, visibility isn’t optional. It’s your edge.
