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Freight Pulse & Law Update: Rates Spike as Red Sea Routes Reopen and Jones Act Waiver Tightens

Writer: Lanta LLC
Lanta LLC
Aug 22
3 min read

Direct answer: Transpacific freight rates are rising because congestion and constrained effective capacity are amplifying demand. Asia–U.S. East Coast spot rates reached approximately $9,400 per FEU in mid-August, while Asia–U.S. West Coast rates were near $7,400 per FEU, even as carriers only cautiously return to Red Sea and Suez routes. The U.S.-Iran Memorandum of Understanding aimed at reopening the Strait of Hormuz expired this week, the U.S. blockade remains in place, and bunker prices have climbed roughly 15% since the ceasefire collapse, with some carriers adding emergency fuel surcharges of about $90/FEU in mid-September.

Why are transpacific rates rising?

Freightos reported Aug. 19 that Asia–U.S. East Coast rates reached about $9,400/FEU, with Asia–U.S. West Coast rates near $7,400/FEU. The increase reflects peak-season demand, carrier capacity management, port congestion, and equipment imbalances: not demand alone.

Approximately 1.7 million TEU of capacity remains absorbed by port congestion and landside bottlenecks. Maersk, Hapag-Lloyd, CMA CGM, and COSCO are taking cautious steps back toward Red Sea transits as congestion and higher Cape-of-Good-Hope fuel costs motivate the return, even as security risks remain. A broader return to Suez could eventually release capacity, but the transition may create another wave of simultaneous arrivals and congestion. Treat Red Sea reopening as selective, not normal.

Lanta Logistics Mid-Atlantic logistics gateway connecting port, road, and air freight

What do Panama Canal restrictions mean for shippers?

The Panama Canal plans to reduce daily transits to 34 on Sept. 4 and 32 beginning Sept. 15 as El Niño-related drought reduces freshwater availability. The ACP is also lowering the maximum Neopanamax draft to about 48 feet later this month and about 47.5 feet in early September, and some carriers have announced canal transit surcharges of roughly $200–$1,000/FEU starting in mid-September. Importers routing through the East Coast or Gulf should expect schedule risk, potential surcharges, and longer booking lead times.

What changed under the Jones Act waiver?

The waiver extension runs Aug. 17 through Nov. 15, 2026, and covered cargo must be loaded by 11:59 p.m. ET on Nov. 15. Its HTS scope is narrower, covering more than 32,000 HTS entries rather than a broader blanket category. Covered foreign-flag voyages now require a Vessel Availability Request to the Department of War (DOW) and MARAD before departure; MARAD surveys coastwise-qualified U.S.-flag availability, and operators generally get 24 hours to respond. Operators and waiver applicants must submit completed voyage reports to MARAD within 10 days after completion.

Do not assume eligibility. Confirm HTS classification, cargo scope, vessel availability, and documentation with maritime counsel or customs professionals.

Action list for logistics teams

  • Reprice East Coast alternatives and preserve booking flexibility.

  • Model Suez, Cape, Panama, and West Coast routings.

  • Track container dwell time, chassis availability, and port cutoffs.

  • Prepare for the DOT/CVSA Brake Safety Week inspection period beginning Aug. 23.

Lanta Logistics is a Mid-Atlantic 3PL/4PL based in Glen Burnie, MD, minutes from the Port of Baltimore’s Seagirt Marine Terminal and BWI Airport, with food-grade and hazmat-certified warehousing and a one-day ground reach to 100M+ consumers. For brands evaluating third party logistics providers, 3PL fulfillment services, and supply chain management companies, FlowOps by Lanta delivers inventory management for ecommerce, a warehouse management system, and logistics software for real-time visibility at https://wms.lantallc.com/. Contact Lanta Logistics to plan your next move.

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