Industry Trends

LATAM Space Squeeze as Carriers Divert Vessels to Transpacific Routes

May 15, 2025

We are writing to share an important market update for shippers moving cargo from Asia to Latin America. A rapid escalation in China–U.S. demand following the 12 May suspension of certain reciprocal tariffs has triggered a sharp redeployment of tonnage to Trans-Pacific loops. As carriers chase higher yields, capacity on Asia–LATAM services is shrinking fast and rates are hardening in real time.

 

LATAM Ocean Freight Market Update | Mid-May 2025

The sudden demand spike to the U.S. West and East Coasts has pulled vessels away from West Coast and East Coast South America rotations. Several trends now require close attention:

 

Pressure Point What We Are Seeing
Vessel redeployment Lines are withdrawing ships from Asia–WCSA/ECSA services to bolster Trans-Pacific loops. ZIM has suspended its ZAT West-Coast South America string and redirected ZCP tonnage to Manzanillo, Mexico and U.S. ports.
Blank sailings A growing share of announced blanks falls on LATAM strings, exacerbating space scarcity just as Dragon Boat Festival export volumes peak in early June.
Stricter booking controls Maersk and others have begun cancelling pre-released slots and imposing tighter weight limits per booking, especially on heavy cargo.
Congestion ripple Extra loaders into Manzanillo and Lázaro Cárdenas are lengthening berth delays, affecting feeders serving Brazil, Peru and Chile.

 

Rate Outlook

 

Recommended Actions

  1. Book 3–4 weeks ahead for all June sailings, especially 40 HC and out-of-gauge cargo.
  2. Confirm accurate weights early; amendments are increasingly declined or rolled.
  3. Build transit buffers of 7–10 days for cargo transiting Mexico or Panama hubs.
  4. Remain flexible on port pairs and consider inland alternatives where feasible.

 

We expect the market to remain firmly space-driven through the holiday period and into Q3. RS Logistics is monitoring blank-sailing announcements and capacity shifts daily. If you need priority space, alternate routings, or real-time allocation updates, please reach out to your usual RS contact.

 

Thank you for your continued trust in RS Logistics. We are committed to keeping you informed and your cargo moving.

Industry Trends