The container shipping market has reached another milestone. According to the latest data from the Shanghai Shipping Exchange released on August 28, the Shanghai Containerized Freight Index (SCFI) climbed 99.91 points to 3,509.54 points, marking its fifth consecutive weekly gain and hitting a 25-month high--2. The US East Coast route led the charge, with rates breaking through the $10,000 per FEU mark for the first time in over two years--14.
1. The Numbers: US East Coast Rates Hit $10,046/FEU
The latest SCFI data shows a stark divergence across major trade lanes-2:
| Route |
Rate |
Weekly Change |
| US East Coast (FEU) |
$10,046 |
+3.57% |
| US West Coast (FEU) |
$6,940 |
+2.59% |
| North Europe (TEU) |
$2,716 |
-4.43% |
| Mediterranean (TEU) |
$3,557 |
-5.58% |
The US East Coast route jumped $346 per FEU to reach $10,046, a 3.57% weekly increase. This marks the first time the route has returned to the "five-figure" threshold since the post-pandemic peak. Some carriers are quoting even higher rates—market reports indicate US East Coast spot offers have already surpassed $10,000/FEU, with certain carriers quoting as high as $11,550 per 40-foot container-.
For context, rates on this route were still hovering around $2,600–$2,700 per FEU in March and April of this year-. The current $10,046 level represents an increase of nearly fourfold in just five months.
The US West Coast route also climbed $175 to $6,940 per FEU, a 2.59% weekly gain. For the first half of September, spot market quotes for the US West Coast are now in the range of $7,500–$7,700 per FEU, while contract customers are paying around $6,000. For the US East Coast, spot rates have risen by approximately $500–$600, with some offers already exceeding $10,000/FEU; contract customer rates have also climbed above $9,000.
2. The Drivers: Panama Canal Squeeze, Port Congestion, and Typhoons
Panama Canal Transit Reductions
The primary driver behind the US East Coast surge is the Panama Canal's capacity tightening. Due to the El Niño weather phenomenon causing drought conditions and reduced rainfall in the canal watershed, the Panama Canal Authority (ACP) announced a series of transit restrictions:
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From September 3, daily transits will be reduced from 36 to 34 vessels
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From September 15, transits will be further reduced to 32 vessels daily
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Neopanamax locks (for larger vessels) will have just 9 daily slots
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Panamax locks will drop from 25 to 23 slots from September 15
The Panama Canal is a critical artery for Asian carriers serving the US East Coast—approximately 40% of US container ships transit this strategic waterway. Any capacity restriction directly reduces available slots, increases vessel waiting times, and pushes up per-unit freight costs.
Carriers Respond with Surcharges
Carriers have wasted no time passing on the additional costs:
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MSC announced a Panama Canal surcharge of $149 per TEU and $297 per FEU for Asia-US East Coast and US Gulf shipments, effective September 12
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CMA CGM introduced a $500/TEU "Panama Canal Adjustment Factor" for Far East to US East Coast and US Gulf cargo, effective September 10
These surcharges add another layer of cost on top of already elevated base freight rates.
Global Port Congestion at Record Levels
Global container port congestion has now exceeded pandemic-era peaks. According to shipping consultancy Linerlytica, approximately 4.3 million TEU of capacity is currently stuck waiting to berth—higher than the 4.0 million TEU record set during the height of the COVID-19 pandemic. This represents about 11% of the global container fleet.
North Asia now accounts for 54% of global port congestion, with around 2.5 million TEU of vessels waiting to berth in the region. At Shanghai and Ningbo—the world's two busiest ports—vessels are now waiting up to 10 days to berth. The average waiting time at Shanghai and Ningbo ports has stretched to three to five days.
Typhoon Disruptions
Recent weeks have seen a succession of typhoons—Bavi, Noul, Dolphin, Narra, and Saudel—disrupting port operations across China. These weather events have exacerbated vessel delays, terminal congestion, equipment imbalances, and schedule disruptions throughout the region. The congestion at Shanghai has begun spreading to the wider regional port network, creating a cascading effect.
3. The Market Response: Carriers Regain Pricing Power
Xeneta chief analyst Peter Sand noted that the current market is being affected by multiple compounding disruptions, and carriers' bargaining power has returned to levels not seen since the pandemic.
"Carriers have regained pricing power to an extent not seen since the pandemic," Sand said. With spot rates far exceeding long-term contract rates—which are still in the $2,000 range for many shippers—carriers are prioritising higher-yielding spot cargo over contract commitments. This has created a situation where even shippers with long-term contracts are finding it difficult to secure space.
MSC has reintroduced its "Diamond Tier" premium service product, offering guaranteed space for shippers willing to pay a premium. As Sand observed, this allows carriers to monetise space that shippers may have already believed they had secured through contracts.
The charter market has also tightened significantly. Newbuilding deliveries have fallen to a three-year low due to summer holidays and fewer orders placed in early 2023. Vessel availability remains extremely tight, with ships changing hands in a circular fashion as carriers scramble for new charters.
Shifting US Demand
While US market demand had been lagging behind Europe earlier in the year, growing concerns over further geopolitical deterioration have prompted US importers to accelerate inventory replenishment. This has pushed Asia-US demand back into the spotlight, adding further pressure on already tight capacity.
The current spot market for Asia-US East Coast is now roughly 2 to 3 times normal levels. With the Panama Canal squeeze, port congestion, and typhoon disruptions showing no signs of abating in the short term, the outlook for US East Coast rates remains firmly elevated.
4. What This Means for Shippers
For shippers with cargo moving to the US East Coast, the current market environment demands immediate attention:
Secure space early. With load factors high and capacity tight, waiting until the last minute will result in significantly higher costs or no space at all. Book at least 2–3 weeks in advance.
Factor surcharges into your budget. The Panama Canal surcharges from MSC and CMA CGM—along with potential additional fees from other carriers—will add $149–$500 per container on top of already elevated base rates.
Consider alternative routings. For non-urgent cargo, evaluate routing via the US West Coast with onward rail transport to the East Coast. While this adds transit time, it may offer cost savings compared to direct East Coast service. However, note that US West Coast rates are also rising.
Monitor contract vs. spot pricing. With carriers prioritising spot cargo, shippers with long-term contracts should confirm space availability well in advance and be prepared to pay premiums for guaranteed capacity.
Plan for continued volatility. The Panama Canal restrictions are set to intensify through September, and typhoon season in Asia typically runs through October. Rate volatility is likely to persist.
Glovoyce Observation
The US East Coast rate breaking $10,000/FEU is not just another data point—it is a signal. The convergence of the Panama Canal squeeze, record port congestion, and typhoon disruptions has created a perfect storm that has pushed shipping costs to levels not seen since the pandemic peak. Unlike the pandemic-era disruptions, which were largely demand-driven, today's environment is a supply-side shock: capacity is being actively squeezed out of the system by physical constraints on transit routes and port operations.
For shippers, the message is clear: the era of cheap, abundant container shipping capacity is over—at least for the foreseeable future. Those who plan ahead, secure space early, and maintain flexible routing options will be best positioned to navigate this challenging environment.
This article is based on data from the Shanghai Shipping Exchange, Linerlytica, Xeneta, and industry sources as of September 2, 2026. For specific supply chain advice, please consult your Glovoyce account manager.
