Container freight rates on Trans-Pacific trade lanes continued to rise this week, supported by sustained demand and ongoing operational disruptions across Asia.

According to reporting from American Shipper, citing Freightos data, spot rates from Asia to the U.S. West Coast and U.S. East Coast rose 2% week-over-week. Drewry’s World Container Index (WCI) released on September 3 also mirrored an uptick on Trans-Pacific routes. According to Xeneta, spot rates from the Far East to the U.S. East Coast have risen 305% since late February and now sit just 14% below the record levels reached during the pandemic period.

Demand has continued despite an early start to the peak shipping season this year. As reported by American Shipper, imports associated with data center infrastructure projects continue to support cargo volumes. At the same time, the absence of additional U.S. tariff measures announced in July has helped reduce uncertainty for shippers.

Weather-related disruptions in Asia are still limiting the capacity of ships and disrupting shipping networks in the region. Several typhoons have affected operations at major Chinese ports, leading carriers to modify their schedules, which has included skipping some port calls, changing vessel rotations, and placing greater reliance on transshipment hubs, as reported by American Shipper.

This is pointed out in Shipco’s most recent insights of congestion in East Asian markets. The disruptions are impacting not just the ports. They are also having an effect on vessel schedules, feeder services, container terminal operations, and warehouses; increasing the difficulty of shipment planning for cargo owners and forwarders.

Meanwhile, the situation concerning trade between Asia and Europe is less favorable. Drewry noted that, as shown by the WCI, the spot rates from Shanghai to both Rotterdam and Genoa fell during that week. With more capacity entering the market in the coming week, Drewry expects a slight decline in spot rates.

Reporting by Drewry and gCaptain have also highlighted the continued risks from ongoing security concerns in the Middle East, in addition to Panama Canal drought restrictions that continue to constrain vessel transits. American Shipper also reported that some carriers are considering low-water surcharges for Panama Canal routings, which could place further upward pressure on U.S. East Coast rates.

Drewry expects scheduled blank sailings ahead of China’s Golden Week holiday from October 1 to October 7 to provide short-term support for Trans-Pacific rates. Nevertheless, the speed of recovery at Asian ports will be a key factor influencing freight market conditions through the remainder of September.

Sources: American Shipper, Drewry, Xeneta, gCaptain