Freight Pulse & Law Update - 19:00

Global container congestion has reached a record 4.3 million TEU, exceeding COVID-era peaks. East Asian typhoons, Red Sea and Hormuz disruption, and Panama Canal slot cuts are removing capacity and weakening delivery reliability.

What is driving the congestion?

Shanghai vessel waiting times jumped to 96 hours, up from 35 hours the prior week. Rotterdam and Antwerp yard utilization is above 90%, while North Europe–U.S. East Coast on-time performance fell to just 28% in July, according to Sea-Intelligence analysis.

• Vessel delays are absorbing approximately 1.7 million TEU

• That equals roughly 5% of global deep-sea capacity

• Hormuz traffic has fallen sharply, forcing longer diversions

• Weather-related closures are compounding terminal backlogs

What do container rates signal?

The Drewry World Container Index dipped 1% this week to $4,473 per FEU. Shanghai–New York rates fell 2% to $9,333, while Shanghai–Los Angeles held at $6,818. Carriers announced four blank sailings for next week.

Lower spot rates do not mean lower risk. Build inventory buffers, validate alternate gateways, and use real-time logistics software to monitor changing ETAs.

What changes under the Jones Act waiver?

The waiver now runs through November 15, 2026, but each foreign-flag voyage requires a pre-voyage Vessel Availability Request to the Department of War, MARAD, and CBP. The process includes a 24-hour market survey, reduces covered HTS codes from 671 to 237, and does not exempt foreign-flag waiver income from U.S. federal income tax. Review the legal analysis before booking.

What should trucking teams do now?

During DOT/CVSA Brake Safety Week from August 23–29, verify brake systems, inspection records, and drayage readiness.

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