Latin America Trade Faces Sustained Pressure from Weather Disruptions and Capacity Constraints

The Asia-Latin America market is experiencing sustained upward pressure during the second half of August, driven by severe schedule instability from typhoon disruptions and tight vessel capacity across all major trade lanes. Following the mid-August rate increases, carriers are preparing another substantial pricing adjustment from August 22, supported by reduced available space from blank sailings and port omissions affecting Shanghai and Ningbo services. Mexico, West Coast South America and East Coast South America are all experiencing firm pricing momentum, while multiple typhoon events throughout July and early August have created cascading operational disruptions across East and South China ports, with vessel delays and equipment circulation challenges continuing to affect schedule reliability.

To help you better understand the current market dynamics and support your sales activities at origin, please find below our latest observations and outlook for the second half of August.

Rate Trend and Pricing Outlook

• Freight rates have risen substantially across all Latin America trade lanes following the mid-August rate increases, with carriers implementing upward pricing adjustments to varying degrees. Mexico and West Coast South America lanes saw increases around the moderate level, Panama and Caribbean routes experienced similar upward momentum, while East Coast South America recorded the largest uplift, reflecting the tighter supply-demand balance on these services.
• Based on the latest market indications, carriers are preparing another substantial rate increase from August 22, signaling continued upward pricing direction through the remainder of the month. The underlying drivers are tight vessel capacity, reduced available space from service disruptions, and ongoing schedule instability that is keeping the market under strong pressure.
• Higher bunker costs are providing additional underlying support to freight rate levels, while continued growth in China-origin vehicle and electric vehicle exports to Latin America is supporting outbound demand and tightening space availability further. This combination of supply-side constraints and demand-side strength is reinforcing carriers’ confidence in sustained pricing momentum.
• For partners handling larger-volume shipments or project cargo, we encourage early engagement with our pricing team. Market conditions remain negotiable depending on shipment profile, carrier selection and routing requirements, and tailored solutions are available to support your commercial objectives during this constrained period.

Capacity Outlook and Service Developments

• Schedule instability has become severe during the second half of August, with serious vessel delays and an overall tight space situation across the Latin America network. Because of blank sailings and port omissions, available space on the Mexico and West Coast South America trades has been reduced significantly, while East Coast South America capacity has not declined as sharply but space still needs to be secured well in advance.
• Multiple port omissions are affecting Asia-Latin America services during August due to typhoon disruptions:
  • ONE AN1 service (ONE SINCERITY 2618W/2630E) omitting Ningbo
  • MSC AN2 service (MSC LELLA FA630A) omitting Shanghai
  • TPM/AME1 service (TENO PHIN 2631E) omitting Shanghai
  • WS2 service (KOTA PELANGI 050E) omitting Shanghai
  • Wan Hai ASA service (WAN HAI A16 E012) omitting Ningbo
• Maersk has restructured its Asia to West Coast Latin America services with two updated configurations. The AC2 service now operates on a Ningbo-Taicang-Busan-Lazaro Cardenas-Manzanillo rotation on a weekly basis, effective from August 11. The AC1 service has been reconfigured to a Shanghai-Yokohama-Manzanillo-Lazaro Cardenas-Buenaventura-Balboa rotation, also weekly, effective from August 20. These adjustments provide improved connectivity into Mexico and Central America but partners should confirm space availability early given the tight market conditions.
• The combination of port omissions, service restructuring and ongoing weather-related schedule disruptions underscores the importance of flexible planning and early communication. Partners should engage with us early to secure space allocation, particularly for shipments requiring specific sailing dates or routing through ports affected by the service adjustments.

Operational Developments and Market Drivers

• Typhoon Dolphin impacted Zhejiang, northern Fujian and Shanghai during August 9-11, causing flooding, transport disruption and operational controls. Ningbo reportedly sheltered approximately 800 vessels ahead of the storm, and schedule recovery from Shanghai and Ningbo may remain uneven through the remainder of August, adding uncertainty to transit times and cargo availability.
• Earlier typhoon events have compounded the operational challenges. Typhoon Noul caused terminal suspensions at Yantian, Shekou and Chiwan on July 25, with laden and empty container operations temporarily halted and depot activities paused. Typhoon Bavi disrupted Ningbo and Shanghai operations during July 10-14, with suspensions affecting terminals, yards, warehouses and barge operations. These cascading disruptions continue to affect equipment flow and vessel schedules into August.
• Yantian port is experiencing berth pressure and congestion, with six quay cranes under upgrade until August, reducing terminal capacity and keeping vessel waiting time around one to one-and-a-half days. This situation is contributing to the broader schedule instability affecting Latin America services calling South China ports.
• Equipment circulation is tightening due to weather-related depot and yard interruptions, though there is no confirmed severe empty container shortage region-wide as of mid-August. Container pickup and repositioning may be slowed by the operational disruptions, and partners should coordinate equipment requirements early with our operations teams.
• Multiple carriers have increased Panama Canal Surcharges during late July and August, with CMA CGM raising its surcharge from the lower level to a higher level effective July 25 for Asia to East Coast Central America, North Coast South America, Caribbean and Manaus. MSC is implementing a similar surcharge from August 19 for Asia to US East Coast and Gulf via the Panama Canal, while Hapag-Lloyd is applying an even higher surcharge from August 15 for Far East to North America via the Panama Canal. Further Panama Canal draft restrictions from August 15 are maintaining pressure on transit costs and vessel planning.

RS Logistics will continue monitoring carrier pricing strategies, capacity deployment adjustments, blank sailing developments and operational conditions closely. Our teams across China and Southeast Asia remain available to support booking planning, routing evaluation and space coordination for upcoming shipments. We will continue sharing timely updates as market conditions evolve.

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