Trade tensions easing lead to a boom in Pacific shipping.

Container shipping companies have been facing pressure from sharp declines in freight rates, with some short-term routes approaching breakeven points. According to the Drewry Global Container Index, as of last week, the global container freight rate benchmark has dropped to slightly over $2,076 per 40-foot standard container. This is the lowest level since December 2023. "The container shipping industry is expected to see a significant improvement in freight rates driven by two key factors: a recovery in transport volume and the start of the peak season," Jefferies analysts wrote. "With a tightening of capacity on trans-Pacific routes, shipping companies are expected to take a leading position in the rising rates."