Vietnam-US container freight rates surge to nearly $9,000 per container

During the week from June 29 and July 5, the Vietnam Container Freight Index (VCFI) rose 11.9 percent from the previous week to 3,449.5 points.

Average freight rates across monitored routes stood at $4,862 per container.

The strongest increases were recorded in services to the United States.

Freight rates from Ho Chi Minh City to the U.S. West Coast jumped 18.9 percent to $7,214 per 40-foot container, marking the largest weekly gain among the 13 shipping routes tracked by the index.

Compared with three months ago, rates on the route have surged more than 200 percent, reaching their highest level in a year.

Meanwhile, freight rates to the U.S. East Coast climbed 16.7 percent in one week to $8,849 per container, making it the most expensive route in the VCFI system.

The rate was 51 percent higher than one month ago and nearly 150 percent above levels seen three months earlier.

The two U.S.-bound routes accounted for more than 361 points of the VCFI's overall increase of nearly 366 points, indicating that most of the market's recent momentum has been driven by shipments to the United States.

According to Phaata, exporters are accelerating deliveries ahead of a U.S. tariff policy deadline on July 24.

The concentration of shipments within a short period has pushed up demand for vessel space, allowing shipping lines to raise freight prices significantly.

After the Supreme Court of the United States struck down the International Emergency Economic Powers Act (IEEPA)-related tariffs imposed by U.S President Donald Trump in April 2025, the U.S. president pivoted to Section 122 of the Trade Act of 1974, which permits a temporary global surcharge of up to 15 percent for no more than 150 days.

That Section 122 tariff on imports took effect February 24, and is set to expire July 24, unless extended by Congress, Reuters reported.

The sharp rise in transportation costs is piling financial pressure on exporters that signed contracts before the latest surge.

Since selling prices are often fixed in advance, many exporters may have to absorb the additional freight expenses.

The impact is even greater for exporters of perishable goods.

Shipping delays or schedule changes can increase warehousing and storage costs while also affecting product quality.

Phaata believes the current spike in U.S.-bound freight rates may be temporary.

Once the rush to ship goods subsides, cargo volumes are expected to decline, potentially easing freight rates from current highs.

Shipping rates to Europe continued to increase, although at a slower pace than U.S. services.

Freight rates from Ho Chi Minh City to Northern Europe rose 4.4 percent during the period to $5,714 per container, while rates to the Mediterranean also increased 4.4 percent to $7,073 per container.

Both routes reached their highest levels in 52 weeks.

Elevated freight costs on European routes continue to reflect shipping lines' avoidance of the Red Sea and the Suez Canal due to ongoing security concerns.

Instead, vessels are rerouting around the Cape of Good Hope, extending transit times, increasing fuel consumption, and reducing overall shipping capacity.

However, Phaata expects freight rates to begin easing in the coming week, forecasting a 2.1-percent decline for Northern Europe and a 3.7-percent drop for Mediterranean services.

Phaata advises exporters shipping to the United States and Europe to prioritize short-term freight contracts and secure vessel space early for critical shipments.

Intra-Asia shipping rates decline

In contrast to the U.S. and European markets, freight rates across Asia have started to cool after several weeks of increases.

Rates from Ho Chi Minh City to Japan fell 19.8 percent to $511 per container, representing the steepest decline among the 13 routes.

Freight rates to South Korea dropped 7.5 percent to $443 per container.

Shipping costs to China decreased five percent to $162 per container, the lowest level in the VCFI system, while rates to Southeast Asia edged down 0.9 percent to $510 per container.