Latin America Market Tightens as August Rate Increases Follow Capacity Withdrawals

The Asia-Latin America market is entering a more constrained phase during the first half of August following a temporary rate correction in July. Carriers have introduced substantial rate increases across all major trade lanes, supported by multiple service suspensions and blank sailings that are reducing available capacity considerably. Mexico, West Coast South America and East Coast South America are all experiencing upward pricing momentum, while vessel delays at origin ports have worsened significantly due to terminal congestion and typhoon disruptions. Equipment availability is tightening at some origin ports, with Ningbo experiencing more noticeable constraints as local port authority policies prioritize rail-sea intermodal and feeder service containers over regular export bookings.

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 first half of August.

Rate Trend for First Half of August

• Freight rates are rising across all Latin America trade lanes following the introduction of substantial rate increases in August. After a temporary correction in July, carriers have implemented upward pricing adjustments to varying degrees, marking a clear turnaround in market direction and signaling tighter supply-demand conditions ahead.
• Mexico and West Coast South America lanes are experiencing moderate to substantial rate increases as carriers adjust pricing upward. The underlying driver is the combination of reduced capacity from service suspensions and blank sailings, together with carriers’ efforts to restore pricing discipline following the July softening period.
• East Coast South America rates are firming considerably, with the potential for further increases from the second week of August depending on booking momentum and space availability. The upward trajectory reflects both the capacity withdrawals taking effect and carriers’ confidence in sustained cargo demand on these services.
• Caribbean routes are expected to hold at late July levels during the first week of August, with another round of rate increases anticipated from the second week. This phased approach suggests carriers are testing market acceptance before implementing additional pricing adjustments on these lanes.
• 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.

Capacity and Space Forecast

• The Latin America market is expected to return to a space-constrained environment throughout August as multiple service adjustments and blank sailings reduce available capacity considerably. Early booking and proactive space allocation will be critical, particularly for Mexico and West Coast South America shipments where capacity pressure is most acute.
• Several significant capacity reductions are taking effect during August:
  • COSCO WSA8 and OOCL TLP8 Mexico-only services with approximately 3,000 TEU capacity are suspended for the month.
  • PIL WSA6, YML SA8 and Wan Hai AS2 services are implementing blank sailings during the second week, affecting Mexico, Colombia, Guatemala, Peru and Chile.
  • HMM NW4 and ONE ALX4 services with approximately 8,600 TEU capacity are implementing blank sailings during the first half of the month, impacting Mexico, Peru and Ecuador.
• Maersk AC2 service with approximately 13,000 TEU capacity will no longer call Shanghai from August, representing a substantial capacity withdrawal from this origin. The service is being replaced by AC1 with smaller vessel capacity of around 4,500 TEU, and the first available sailing is expected on August 20, creating a net reduction of approximately 8,500 TEU on this rotation.
• The combination of service suspensions, blank sailings and vessel downsizing is creating meaningful capacity pressure across the network. 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 Port Conditions

• Vessel delays at origin ports have worsened significantly in August compared with July levels. Shanghai Yangshan Port is experiencing average delays of approximately 10 days, up from the previous 4-5 day average, with some vessels experiencing even longer delays due to the combination of terminal congestion and typhoon disruptions.
• Ningbo Port is recording average delays of approximately 5 days, while Shenzhen, Qingdao and other major ports are also reporting various levels of schedule disruptions. This situation is expected to continue until late August, adding uncertainty to transit times and potentially affecting cargo availability at destination.
• Equipment availability is tightening at some origin ports, with Ningbo experiencing more noticeable constraints compared with other major gateways. According to policy guidance from Ningbo Port Authority, shipping lines are prioritizing space allocation and vessel loading for containers moved through rail-sea intermodal transportation and feeder services, meaning regular export containers may face relatively tighter space and equipment availability during peak periods.
• Chile ports San Antonio and Valparaíso are experiencing severe weather disruptions affecting vessel berthing operations. Heavy rain and strong winds are causing significant operational impacts, with increasing port congestion and schedule delays that may affect cargo delivery timelines for Chilean destinations.
• The combination of origin-side vessel delays, destination-side weather disruptions and equipment constraints underscores the importance of flexible planning and early communication. Partners should factor in additional buffer time when coordinating shipment schedules and remain in close contact with our operations teams to navigate these operational challenges effectively.

As always, our Latin America Trade and Pricing teams continue to monitor carrier pricing strategies, capacity deployment adjustments and operational developments on a daily basis. Our teams across China and Southeast Asia remain available to support booking planning, routing evaluation and space coordination for upcoming shipments. Should you have any inquiries or require the latest market intelligence, please feel free to contact your RS Logistics representative. We remain committed to providing timely updates and reliable execution to support your business throughout August.

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