Freightos Baltic: US East Coast scales 2026 peak on lingering hub congestion as Red Sea return hits two-thirds capacity

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Global east–west container benchmarks climbed across all four primary corridors in the week to 28 October 2026, as Far East berth congestion and November rate pushes outweighed cooling post-peak demand.

Defying post-Golden Week cooling expectations on the Freightos Baltic Index, Asia–US East Coast spot rates jumped 9% to a 2026 high of $10,565/FEU whilst West Coast prices rose 3% to $8,368/FEU. Daily East Coast prints have already eased. Rates remain roughly $200/FEU above last week, though forwarders report loosening space and expect seasonal easing. However, a Los Angeles and Long Beach watchmen's union—representing 2% of port labour yet securing most terminals—authorised a strike from 1 November, threatening outsized disruption atop existing rail delays.

On Europe-bound trades, scheduled November General Rate Increases (GRIs) and blanked sailings lifted Mediterranean rates 8% to $4,252/FEU and Northern Europe 3% to $3,551/FEU, though forwarders report carrier discounting and doubt further hikes will stick. Red Sea capacity restoration has reached nearly two-thirds. Alongside Alphaliner's Asia–Europe estimate, Israeli liner ZIM resumed Bab el-Mandeb transits on its joint US East Coast service with MSC, defying August Houthi bans on Israel-linked vessels.

Faster Red Sea turnarounds are paradoxically slowing Chinese hub recovery from summer storms, as early arrivals cause vessel bunching. Meanwhile, Typhoon Champi shut Taiwanese ports and airports on 23 October but largely spared East China before weakening toward Japan.

Following September's US–China trade truce extension to early January, the US Trade Representative (USTR) opened public comments last week to likewise defer 10 November port fees on China-linked vessels until January. Broader tariff relief remains temporary. Year-end completion of USTR Section 301 excess capacity probes into China and 15 other nations should recommend restoring duties to invalidated IEEPA levels after a two-month comment and hearing window.

Written by: Aiman Haikal