top of page
Search

Freight Pulse & Law Update: Ocean Rates Surge 400% on Capacity Control, Rhine Crisis Deepens, IRS Curbs Jones Act Tax Break

Writer: Lanta LLC
Lanta LLC
Aug 23
2 min read

Ocean spot rates are surging despite China-to-U.S. volumes falling approximately 1%. Carriers, not demand, are controlling available capacity as inland waterways and regulatory requirements add further pressure.

Why are ocean rates rising while demand is flat?

The top 10 container lines control roughly 90% of global capacity and remain exempt from U.S. antitrust law. Through blank sailings and other capacity controls, carriers are tightening supply and lifting prices.

  • Asia–U.S. West Coast: approximately $7,400/FEU, up 9% week over week

  • Asia–U.S. East Coast: approximately $9,400/FEU, up 3% and a new high

  • Asia–Northern Europe: cooling to approximately $4,700/FEU

  • Yang Ming: reported a 482% profit surge

Mid-Atlantic logistics gateway connecting port, road, air, and warehouse operations

How is the Rhine crisis affecting inland freight?

Record-low water near Kaub, reported as low as 7cm, has reduced barge capacity to roughly 20% of normal.

  • Low-water surcharges: up to €1,350/TEU near Kaub and €895/TEU near Cologne

  • Approximately 35% of Rotterdam hinterland containers move by barge

  • Truck capacity in constrained areas can take up to two weeks to secure

Shippers should model alternate rail, truck, and warehouse capacity before cargo arrives.

What changed under the Jones Act waiver?

Effective August 17 through November 15, 2026, every foreign-flag coastwise voyage requires a Vessel Availability Request to the Department of War, MARAD, and CBP, plus a 24-hour U.S.-flag market survey.

  • Eligibility is limited to 237 HTS codes

  • Waiver voyages must be documented case by case

  • The IRS confirmed related income is ineligible for standard international shipping tax exemptions

What should fleets inspect during Brake Safety Week?

DOT/CVSA Brake Safety Week runs August 23–29, focusing on drums and rotors. Inspect:

  • Cracks, excessive wear, grooves, and rust

  • Missing sections or exposed vents

  • Manufacturer discard limits and minimum thickness

Use FlowOps by Lanta to connect logistics software, a warehouse management system, dispatch, and real-time inventory management for ecommerce.

For resilient 3PL fulfillment services, contact Lanta Logistics for third party logistics providers, supply chain management companies, and Mid-Atlantic fulfillment from our Glen Burnie warehouse.

 
 
 

Comments

bottom of page