Ocean carriers are struggling to balance demand and capacity on the transpacific as rates diverge and demand recovery stalls, reports American Shipper.

Freightos data showed West Coast rates fell six per cent last week to US$1,963 per FEU after a general rate increase, while East Coast prices rose eight per cent to $3,150 per FEU but remain 15 per cent lower than a month ago. Rates are still above October lows of $1,400 and $3,000 per FEU.

Freightos Head of Research Judah Levine said slumping fourth-quarter demand and growing fleets are weighing on rate levels, making mid-month increases unlikely to hold. A more sustained rebound is expected closer to Lunar New Year when shippers rush orders before Chinese factory closures.

Analysts noted about 60 per cent of cargo moves under contract and 40 per cent under spot rates, though those figures shift when capacity tightens. Carriers continue to deploy new tonnage despite the soft market.

A wildcard in demand forecasts is a pause in US imports as manufacturers await a Supreme Court ruling on President Donald Trump's emergency tariffs. Neale Mahoney of Stanford Institute for Economic Policy Research said Trump could use the decision as a tariff off-ramp amid criticism over living costs.

On Asia-Europe lanes, rates have held recent increases despite overcapacity. Asia-Mediterranean prices were steady at $3,342 per FEU after a 15 per cent rise earlier in December, while Asia-North Europe rates were stable at $2,449 per FEU, well above October lows.