TransPac container rates to rise due to Panama Canal draft restrictions

Chamber of Shipping > Blog > News > International > TransPac container rates to rise due to Panama Canal draft restrictions

The transpacific spot rates from Asia are expected to rise due to labour strikes at US west coast ports and draught restrictions in the Panama Canal. This will likely accelerate the shift of cargo to the US East and Gulf Coast gateways. The largest ships on the Asia-US east coast Panama routes will face reduced load factors due to the restrictions. Carriers have implemented surcharges, and there are rumours of rate increases for transpacific Panama Canal loops. Carriers may need to downsize vessels or consider routing via the Suez Canal, although this would come at higher costs. The Panama Canal Authority has experienced the driest month in over 70 years, causing concerns about worsening drought conditions. Recent rainfall has allowed for a temporary deferral of draught restrictions, but further adjustments may be announced.

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