Ports

Transpacific Rates Poised to Remain Elevated Despite Seasonal Slowdown

Container shipping rates on transpacific routes are expected to stay robust through the upcoming slower season, Yang Ming executives said during an investor presentation. The Taiwanese carrier attributed pricing strength to multiple capacity constraints, including Panama Canal draft restrictions limiting neopanamax vessels to 48 feet since late August, with further reductions to 47 feet anticipated. Yang Ming operates primarily 13,000 teu vessels capable of transiting current restrictions, though broader canal water level fluctuations continue pressuring east coast economics. Port congestion and shifting cargo flows between US gateways are also supporting rates. Shanghai to US East Coast routes now exceed $10,000 per 40-foot container—a post-Covid peak—while west coast pricing holds near $7,500 per 40-foot. Both lanes have increased fivefold year-over-year. Analysts forecast continued rate firmness into the following month.