US East Coast Box Rates Break $10,000 as Panama Cuts Daily Transits Again

The Shanghai Containerized Freight Index has climbed to 3,509.53 points, a weekly rise of 2.9% and its highest level in 25 months, with the Shanghai to US East Coast rate breaking $10,000 per FEU for the first time since 2022.

The North American lanes carried the index. As of 28 August the Shanghai to US West Coast base port rate stood at $6,940 per FEU, up 2.6%, while the East Coast rate advanced 3.6% to $10,046, widening the differential between the two corridors to $3,106. South America saw the largest percentage gain of the week at 11%, to $8,663 per TEU, and Australia and New Zealand rose 6.7% to $2,471. The Persian Gulf lane rose 7.1% to $6,139 per TEU.

Europe moved the other way. The Shanghai to European main ports rate fell 4.4% to $2,716 per TEU and the Mediterranean rate dropped 5.6% to $3,557, with added capacity and resumed Suez routings easing the supply and demand balance. Drewry's World Container Index eased 1% to $4,473 per FEU, with Shanghai to Los Angeles flat at $6,818, Shanghai to New York down 2% at $9,333, Shanghai to Rotterdam down 3% at $4,287 and Shanghai to Genoa down 2% at $4,866.

The East Coast strength has a physical cause. Panama Canal daily vessel transits dropped from 36 to 34 slots on 3 September, with a further reduction to 32 scheduled for 15 September. Draught restrictions for the neopanamax locks have tightened to 48 feet and fall to 47.5 feet on 1 October. Every foot of draught removed from a neo-panamax box ship is cargo that has to move another way, and every slot removed lengthens the queue behind it. Earlier tightening on the same locks is set out in the draught limits.

The charter market is reading the same signals. Charterers have started evaluating 2027 capacity arrangements to secure tonnage well in advance, with roughly four million TEU of capacity locked up in congestion globally, a figure already above the scale recorded during the pandemic. On 25 August the 1,740 TEU feeder Jonathan P, built in 2006, was fixed for a two-year charter extension at $26,000 a day, $1,000 above her previous fixture, with delivery after a drydock in late November. Euroseas chairman and chief executive Aristides Pittas described the charter market as active despite the usual summer slowdown, citing strong operator demand, limited tonnage and firm rates and durations.

MPCC co-chief executive Constantin Baack argued that conventional supply and demand analysis no longer captures the market, pointing to Maersk rechartering seven feeders nine months ahead of schedule as evidence of further tightening. Peter Sand noted that Mediterranean Shipping Company has reintroduced its premium Diamond Quote product, which appeals in heated conditions where customers will pay to secure space, and said the position carriers now occupy has not been seen since the pandemic.