Flexport: Trans-Pacific Space Constrained

TRANS-PACIFIC EASTBOUND (TPEB) Capacity and Demand: • Carriers canceled approximately 7% of scheduled Trans-Pacific Eastbound (TPEB) capacity in Week 26, down from approximately 9% in Week 25.

Space remains constrained across all gateways.

U.S.

East Coast and Gulf services are more restricted than West Coast lanes, with ongoing cargo rollings on multiple strings. • Panama Canal draft limits for neopanamax vessels are set to tighten on July 3, which will reduce available load capacity on canal-routing services to U.S.

East Coast and Gulf destinations.

Several carriers have implemented weight restrictions on Panama strings in anticipation. • Global container demand reached record levels in April 2026, with volumes above any prior April on record.

On the Transpacific, shippers advanced bookings earlier than in prior seasons, moving cargo ahead of the June 15 rate increases.

Space on U.S.

East Coast and Gulf services is largely committed through the end of June. • Freight Rates: • The Shanghai Containerized Freight Index (SCFI) rose approximately 10% week-on-week on U.S.

West Coast lanes in Week 26, extending a run of consecutive weekly increases now spanning six weeks.

U.S.

East Coast lanes also rose approximately 10% in Week 26.

Other market indices confirm the same directional trend.

Carriers have implemented a rate increase on floating and increased Peak Season Surcharge (PSS) on fixed rates effective June 15, both of which are broadly holding across all gateways. • Recommendation: • Book 4-5 weeks ahead.

Shippers with time-sensitive cargo or U.S.

East Coast and Gulf destinations should consider premium service levels to reduce the risk of rolling.

FAR EAST WESTBOUND (FEWB) • Capacity and Demand: • Carriers canceled approximately 8% of scheduled Far East Westbound (FEWB) capacity in Week 26, up from approximately 4% in Weeks 24 and 25. • Cape of Good Hope routing extends each voyage by 10 or more days compared to Suez Canal routing and reduces the effective number of vessel rotations available per year.

Transshipment hubs along the Cape route are experiencing multi-day berthing delays, compounding the supply constraint and contributing to equipment shortages at Chinese and Southeast Asian origin ports. • Global container volumes reached record levels in April 2026.

Demand on Asia-Europe lanes remains strong, with vessel utilization near full capacity for June sailings.

The recently announced U.S.-Iran framework agreement could give some relief to the situation as carriers could potentially start returning to Suez in the medium term but as of now too early to tell. • Freight Rates: • The Shanghai Containerized Freight Index (SCFI) for North Europe rose approximately 20% in Week 25 and held broadly flat in Week 26, following seven consecutive weeks of increases.

Mediterranean lanes saw similar movement in Week 25, with broadly stable rates in Week 26.

Other market indices confirm rates are holding at elevated levels.

Carriers have announced an increase to Peak Season Surcharges (PSS) effective July 1. • Recommendation: • Book 5-6 weeks ahead.

For time-sensitive or high-value cargo, secured premium services are advisable through at least the end of July.

TRANS-ATLANTIC WESTBOUND (TAWB) • Capacity and Demand: • Carriers canceled approximately 9% of scheduled Trans-Atlantic Westbound (TAWB) capacity in Week 26, up from approximately 4% in Week 25.

Cancellations are concentrated on services to the U.S.

West Coast and Gulf destinations; U.S.

East Coast lanes have more available space.

Equipment shortages persist across Northern European origins, particularly Germany, Benelux, and Central Europe.

Major Northern European ports are operating at high utilization, with vessel wait times of two to three days at key hubs.

Schedule reliability on westbound Atlantic services currently stands at approximately 44-55%, meaning a material share of sailings are arriving behind schedule. • June and July are expected to be the last strong demand months before traditional European summer warehouse closures reduce shipping volumes in August.

Import volumes on TAWB declined year-over-year in April as the tariff-driven front-loading of Q1 faded.

Underlying demand remains steady ahead of the seasonal slowdown. • Container and chassis shortages persist across all major TAWB export origins, including Germany, Benelux, Austria, Hungary, and Slovakia. • Freight Rates: • Rates are broadly stable on North Europe to U.S.

East Coast and Gulf lanes, with modest upward pressure on U.S.

West Coast lanes.

A Peak Season Surcharge (PSS) remains active across Northern European and Mediterranean origins.