Situation

The Transpacific Eastbound trade is showing clear signs of a peak, with rates set to rise towards mid-October. A subsequent drop in demand later in the month will likely lead to near-term rate adjustments. Currently, the Panama Canal authority has eased transit restrictions as water levels have gradually recovered, helping to stabilize routings to the US East Coast.

Obstacles

The main obstacle in the upcoming weeks is already evident: congestion, particularly at US West Coast ports, and delays at multiple rail ramps. Due to the recent shift of cargo from the East Coast to the West Coast, this trend is set to continue, negatively impacting transit times.

Outlook

Demand is expected to soften in October, with a further increase in new orders anticipated in the first half of November. Short-term pricing will adjust accordingly, and we could see rates decline throughout October.

Main Ports: Far East to US West Coast

^{Source: Market average rates for 40‘ containers according to www.xeneta.com}

Main Ports: Far East to US East Coast