Washington – October 17, 2026 -- Container rates from Asia to the US West Coast rose 4% last week to $8,400/FEU, a new high for the year, according to the Freightos Baltic Index. East Coast prices held level at about $9,600/FEU, $200/FEU below the late-August peak. Resilient demand kept pressure on rates through month-end.
US-China truce extended two months, with tariff cuts on $30B of goods
The Trump-Xi meeting in Washington extended last year's US-China trade truce by two months. The truce was set to expire on November 10. The leaders also agreed to two more meetings before year-end. The deescalation likely postpones US port call fees on China-linked vessels, though the USTR has not yet issued anything official.
Both sides will cut tariffs on $30B of counterpart imports to most-favored-nation levels, pending legal procedures. The US list covers nearly 80 product entries, with toys the largest category by value. China's list exceeds 1,600 entries, mostly agricultural products and commodities. Total China-US trade is above $400B.
The US Treasury Secretary said the extension is limited to two months because China still has to fulfill earlier commitments to buy US agricultural goods.
Congestion ties up more than 8% of global capacity
Demand is likely to cool after Golden Week as peak season ends. Carriers have added blanked sailings through the holiday period and into late October. Far East congestion continues to drain capacity, and some carriers have cut allocations for certain contracted forwarders.
Sea Intelligence estimates congestion ties up more than 8% of global capacity and could take up to ten months to unwind. Together with higher fuel costs from the Hormuz closure, this should keep rate floors elevated even in low-demand periods. It also raises the baseline for the price climb ahead of Lunar New Year.
Panama Canal to restore ten daily Neopanamax transits in mid-October
Better-than-expected rainfall has led the Panama Canal Authority to restore daily Neopanamax transits to the normal ten. It will also raise maximum draft to 49 feet in mid-October. In late August it had removed one daily transit and cut the draft by a foot. Restrictions could return if the expected El Nino hurts the rainy season, which normally lasts into January.
Asia-N. Europe rates fall 9% to $3,400/FEU; Mediterranean down 7%
Asia-N. Europe prices fell 9% to about $3,400/FEU, and Asia-Mediterranean rates dropped 7% to $3,600/FEU. Demand is likely cooling while carriers add effective capacity through gradual increases in Red Sea transits. Some carriers have still announced rate increases for late October.
Spot prices are down $3,000-$4,000/FEU from the July peak but remain about 50% above a year earlier. Far East congestion, backlogs at some N. Europe hubs and fuel surcharges are holding the floor up.
Air cargo benchmark rises 5%, staying 30% above last year
The Freightos Air Index global benchmark rose 5% and remains more than 30% higher year on year as jet fuel prices stay elevated. China-N. America rates climbed 5% to about $6.80/kg. China-N. Europe prices slipped 4% to $4.14/kg. N. Europe-N. America rates edged up 1%.