ports

Brazil-US Container Rates Spike 50% Despite Collapsing Trade Volumes

Ocean spot rates from South America to North America surged in recent weeks, with Brazil-to-US 40ft container pricing jumping 50% to $3,000 last month. The rally masks deteriorating fundamentals, however. Northbound volume fell 9.6% in April to 225,400 teu, extending contraction through the first four months of 2026. Bilateral trade between the US and Brazil declined 14%, with Brazilian exports down 14% and southbound traffic falling 12%. May marked the 14th consecutive monthly decline in Brazilian exports to the US. Shippers front-loaded cargo ahead of proposed 25% tariffs under a Section 301 investigation. Elevated fuel costs and carrier capacity cuts also pushed rates higher. Brazil is diversifying its export markets, with overall shipments up 8% in May, supported by a Mercosur-EU trade agreement bolstering transatlantic routes.