Deep Sea Freight Transportation

The 241 Deep sea freight transportation service providers use large vessels to move cargo between ocean ports. Carriers may transport intermodal containers, dry bulk, bulk liquids and gases, motor vehicles, industrial and heavy equipment, and boxed, palletized, and other packed goods. Firms may also offer logistics and intermodal transport services, customs brokering, and terminal and stevedoring services.

Cyclical and Dependent on Economic Conditions

Demand for ocean freight transportation is notoriously cyclical and driven by trade activity, which is affected by domestic and global economic conditions.

Dependence on Port Operations

Port congestion, labor strikes, and intermodal delays can interfere with on-time scheduled services and increase expenses.

Sep 16, 2026 - Deep Sea Shipping Prices Jump as Volatility Persists

• Deep-sea shipping costs have surged over the past year, highlighting just how volatile the ocean freight market has become. Producer prices for deep-sea freight transportation jumped 34.2% in July from a year earlier, according to the Bureau of Labor Statistics, far outpacing the 17.2% increase for water freight transportation overall. The increase does not necessarily signal booming cargo demand. Ocean carriers have faced sharp swings in capacity and rates amid Middle East conflict, shifting trade patterns, and tariff-driven changes in shipping schedules. Trans-Pacific container rates surged earlier this year before beginning to ease in July, according to FreightWaves, showing how quickly conditions can change. Much of the year-over-year increase also reflects the comparison with weaker pricing a year earlier rather than a sudden 34% spike in July alone.
• Ocean shipping costs are climbing rapidly as retailers accelerate imports of holiday merchandise to get ahead of expected tariff increases and higher fuel costs. According to transportation intelligence firm Xeneta, the average cost to ship a 40-foot container from China to the US West Coast reached $5,933 in late June, roughly three times the rate at the end of February, with prices expected to rise further as demand for vessel space intensifies. Retailers are pulling forward orders for Halloween and Christmas goods while inventories remain relatively lean. The Census Bureau said the retail inventory-to-sales ratio, excluding motor vehicles, remained near its lowest level since the 2021 supply chain crisis. The import surge also pushed container volumes at the Ports of Los Angeles and Long Beach up 33% year over year in May, reflecting a scramble to avoid anticipated tariff hikes later this summer.
• The Iran war has thrown the US deep sea freight industry into one of its most disruptive periods since the pandemic-era. Fighting and military activity around the Strait of Hormuz have sharply reduced commercial shipping traffic through one of the world’s most important maritime chokepoints. Major ocean carriers have rerouted vessels around the Cape of Good Hope, adding 10-20 days to voyages, driving up fuel costs, insurance premiums, and freight rates, while some Gulf-bound services have been suspended entirely. US importers and exporters are facing congestion, container shortages, volatile bunker fuel prices, and war-risk surcharges that are rippling through transpacific and transatlantic shipping markets. Industry analysts warn that the disruption is no longer limited to oil tankers; container shipping, chemicals, fertilizer, industrial inputs, and consumer goods supply chains are all affected, with higher transportation costs likely to contribute to inflation and slower trade growth in the US economy.
• Following the Supreme Court's invalidation of broad US tariffs in February, American importers face significant uncertainty as the Trump administration imposed new 10-15% global tariffs while legal battles continue. A federal judge ordered refunds of the $130 billion collected under the previous tariffs and a 24-state lawsuit is challenging the new ones. For businesses relying on Chinese manufacturing, the whiplash is severe: some companies are racing to accelerate shipments before higher rates potentially return in July, while others are delaying planned price increases while the trade landscape settles. During 2025, many companies absorbed substantial tariff costs rather than pass them on to customers. Smaller firms (custom furniture makers, for example) report falling sales and operational paralysis, with the overriding theme being that unpredictability itself has become one of the greatest threats to American importers' ability to plan and operate.

Industry size & Structure

The average deep sea freight transportation company employs about 30 workers and generates over $37.5 million annually.

• The deep sea freight transportation industry consists of about 240 firms that employ about 7,218 workers and generates $9 billion annually.
• The industry is highly concentrated; the top 20 companies account for over 92% of industry revenue.
• Large firms include Matson, Genco, and Seaboard Marine.
• Per the US Department of Transportation, water is the leading transportation mode for US international freight. Waterborne vessels carry $2.1 trillion worth of goods in US international trade, representing about 41.5% of the value of global trade.