Breaking

Panama Canal Congestion Redirects Container Traffic to West Coast Port

Operational constraints at the Panama Canal are pushing shippers toward Port of Los Angeles as carriers seek to minimize transit delays and fuel expenses. The shift reflects broader supply chain adjustments as elevated fuel costs make longer routing less economical for time-sensitive cargo. Reefer spot rates averaged $2.74 per mile last week, up 2.5% from the prior period, while dry van linehaul rates rose 5.5% amid quarter-end freight demand. Washington tree fruit shipments maintained rates 72% above year-ago levels even as California produce volume contracted 6%. South Texas reefer movements showed strength as California market activity cooled. The diversion underscores how port infrastructure challenges and operating costs continue reshaping carrier routing decisions across North American logistics networks.