Trans-Pacific container rates moved lower this week as U.S. import demand continues to ease, while Asia-Europe pricing remained comparatively stable despite additional capacity returning to the market.
Operationally, a potential labor disruption at the Ports of Los Angeles and Long Beach remains unresolved ahead of a November 4 deadline, flooding continues to affect Southwest rail service, and a growing share of Asia-Europe capacity has returned to the Suez Canal. Air cargo pricing is also climbing as the fourth quarter peak develops, while several U.S. trade and compliance measures remain in focus heading into November.
MARKET SUMMARY OVERVIEW
Drewry's World Container Index fell 3% for the week of October 29, reversing two consecutive weeks of gains.
Shanghai-to-Los Angeles fell 6%, while Shanghai-to-New York decreased 5%. Asia-Europe pricing remained firmer, with Shanghai-to-Rotterdam up 1% and Shanghai-to-Genoa holding.
Drewry expects additional downward pressure on Trans-Pacific rates as U.S. import demand softens. The National Retail Federation currently projects November U.S. ocean imports at approximately 2.00 million TEUs, down about 11% from October.
BLANK SAILINGS REMAIN AT 8% ACROSS MAJOR EAST-WEST TRADES
Drewry expects 56 blank sailings out of 715 scheduled voyages across Weeks 45 through 49, representing an 8% cancellation rate.
Asia-North Europe and Mediterranean services account for 46% of announced cancellations, followed by Trans-Pacific eastbound services at 36% and Transatlantic services at 18%.
Approximately 92% of scheduled sailings are still expected to operate.
The overall cancellation rate is unchanged from last week, but the distribution has shifted toward a larger share of Trans-Pacific blank sailings as carriers continue adjusting capacity to changing demand.
LOS ANGELES AND LONG BEACH LABOR DEADLINE EXTENDED
A potential work stoppage involving marine terminal security watchmen at the Ports of Los Angeles and Long Beach remains unresolved as negotiations continue.
ILWU Local 26 and the Pacific Maritime Association agreed to extend the current contract through 5:00 p.m. Pacific on Wednesday, November 4, postponing a strike that had previously been threatened for November 1.
Local 26 represents approximately 250 maritime watchmen working at terminals across the San Pedro Bay complex. PMA says those workers are assigned to terminals handling about 85% of cargo at the Port of Long Beach and 33% at the Port of Los Angeles.
No strike has been confirmed, and negotiations continue with assistance from federal mediators.
Shippers with cargo moving through Los Angeles and Long Beach should continue monitoring terminal conditions and confirm pickup, delivery and vessel schedules as the deadline approaches.
SOUTHWEST RAIL FLOODING CONTINUES TO AFFECT INTERMODAL SERVICE
Rail operations through New Mexico continue to recover following flooding that damaged key routes connecting Southern California, the Southwest and inland markets.
Both main tracks on the Gallup Subdivision have returned to service, though trains are operating at reduced speeds while crews work through backlogged traffic.
The latest publicly available service advisory also showed the El Paso Subdivision out of service between Sabinal and La Joya, with temporary embargo restrictions affecting some traffic moving to, from or through the route.
Customers may continue to experience delays, alternate routings and longer-than-normal transit times as recovery efforts continue.
Importers using Southwest rail connections should monitor shipment status closely and allow additional flexibility for inland transportation.
SUEZ ROUTING CONTINUES TO RETURN AS EAST-WEST CAPACITY RISES
Containership traffic through the Suez Canal continues to increase as more Asia-Europe services return from longer Cape of Good Hope routings.
Drewry reported 53 containership transits through the Suez Canal during the week ending November 1, up 130% from the same week in 2025. Approximately 60% of Asia-Europe capacity is now operating through Suez.
Weekly Suez transits have exceeded 50 vessels for five consecutive weeks, while the latest three-week average reached 57 transits, 13% higher than the previous three-week period.
At the same time, Sea-Intelligence reports historically high deployed capacity across major East-West trades, with Asia-to-U.S. West Coast capacity approaching 400,000 TEU per week heading into November.
The return of Suez services is shortening voyage distances and increasing effective capacity, but continued schedule adjustments and vessel bunching may still affect reliability.
Shippers should continue confirming individual vessel routings and transit expectations as networks adjust.
AIR CARGO PRICING RISES AS Q4 PEAK BUILDS
Global air cargo spot rates continued higher during the second half of October even as overall cargo volumes softened.
WorldACD reported worldwide spot rates increasing 5% week-over-week during October 19-25.
Global tonnage declined 2% over the same period, while available capacity decreased 1%.
Asia Pacific-to-U.S. spot rates rose 7% week-over-week, while Asia Pacific-to-Europe rates increased 5%.
The combination of fourth quarter demand, constrained capacity and higher operating costs continues to support elevated air freight pricing.
Shippers moving time sensitive cargo should continue planning bookings early as the holiday shipping period progresses.
SECTION 301 MARITIME MEASURES AND PRODUCT EXCLUSIONS APPROACH NOVEMBER DEADLINE
Two separate U.S. trade measures involving China are approaching November 9 deadlines.
USTR has proposed extending the suspension of its Section 301 maritime measures targeting China's maritime, logistics and shipbuilding sectors from November 10, 2026 through January 9, 2027. The public comment period closed October 30, but USTR has not yet issued a final modification.
The current suspension remains in effect through November 9 unless USTR acts.
Separately, 178 China Section 301 product exclusions are also scheduled to expire at the end of November 9. These exclusions are not part of the maritime-fee proposal.
Importers using affected exclusions should continue monitoring USTR announcements and prepare for standard Section 301 duty treatment to resume beginning November 10 unless another extension is issued.
SECTION 232 ACTION OPENS NEGOTIATIONS ON ROBOTICS AND INDUSTRIAL MACHINERY
A presidential proclamation issued October 28 directs the Department of Commerce and USTR to pursue negotiations with trading partners following a Section 232 investigation into imports of robotics, industrial machinery and related parts and components.
The proclamation concurs with the Commerce Department's finding that these imports threaten to impair U.S. national security.
No tariffs, quotas or fees have been imposed at this stage. Commerce and USTR are directed to report on the progress of negotiations within 180 days, and additional trade measures may be considered depending on the outcome.
Importers of robotics, industrial machinery and related components should monitor the negotiations and any subsequent Section 232 action.
DHS ADDS THREE COMPANIES TO UFLPA ENTITY LIST
The Department of Homeland Security has added three companies to the Uyghur Forced Labor Prevention Act Entity List, bringing the total number of listed entities to 190.
The additions are BGI Genomics Co., Ltd., MGI Tech Co., Ltd. and Shenzhen BGI Technology Co., Ltd.
Under the UFLPA, goods mined, produced or manufactured wholly or in part by listed entities are subject to a rebuttable presumption that they were made using forced labor and are prohibited from entering the United States unless the importer satisfies the requirements for an exception.
Importers should continue reviewing suppliers and upstream business relationships against the current UFLPA Entity List and maintaining documentation that supports supply chain due diligence.
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