Container rates to South America stay elevated amid disruptions

Market participants expect container freight rates from North Asia to the East and West coasts of South America to remain elevated through August, as widespread schedule disruptions, cargo rollings and irregular blank sailings continue to tighten available space despite mixed underlying demand signals.

Participants said recent rate strength has been driven less by cargo growth and more by operational disruptions stemming from congestion across Asia and Latin America, compounded by weather-related delays that have disrupted vessel rotations and equipment positioning.

"Things are changing very fast," a carrier-based market participant told Platts, noting that vessels have struggled to return to Asia on schedule, resulting in omitted sailings and rolling cargo. The source added that most carriers were effectively full through the end of August.

The same participant said current market conditions did not appear to reflect a traditional pre-Golden Week cargo rush. Instead, schedule instability has created cargo backlogs that support higher freight levels.

WCSA rates hold firm

On the North Asia-to-WCSA trade, market participants reported rates continuing to strengthen into mid-August, with levels for the second week of August heard around $5,600-$6,000/FEU.

PCR 29 — North Asia to WCSA — settled at $6,200, strengthening $200 day over day.

Sources expected a further increase during the third week of August as carriers implement fresh general rate increases, with indications rising into the $6,500-$7,000/FEU range.

One freight-forwarder affirmed the viability of successive increases.

"As we are close to Golden Week, carriers will do a final push to keep rates at high levels before they start to decrease," the source said.

The source added that current cargo volumes may not be sufficient to maintain rates at elevated levels once operational conditions normalize.

ECSA follows similar trend

Containerized North Asian cargo into ECSA broadly followed similar rate trends as WCSA, according to the same carrier source. Rates were heard tracking closely with WCSA levels into mid-August.

Sources attributed the strength on both trades to ongoing schedule disruptions rather than shifts or increases in cargo demand. Congestion, weather-related delays and capacity dislocation have limited available space and delayed cargo movements, allowing carriers to continue GRI attempts.

Participants said carriers are likely to continue pushing for higher rates ahead of China's Golden Week holiday period, although some expect the market to soften afterward. Another logistics source had previously predicted that rates would sustain until the end of September.

Platts, part of S&P Global Energy, assessed PCR 31 — North Asia-to-ECSA — at $6,000 Aug. 11.