US ship surcharges spark China port congestion; ex-China freight rates jump

Vessel congestion off China’s coast hit its highest level this year right after the trade war reached the sea with both the US and China applying surcharges on vessels. At the same time, freight rates out of China jumped last week, particularly to West Europe and the US East Coast, although market experts find its sustainability mooted.

China ports clog

New port fees imposed by both the US and China added fresh uncertainty to the global shipping outlook, while creating a heightened congestion at Chinese ports.

Bloomberg, citing Kpler data, reported that average waiting times for commodity vessels rose by 17% from the previous week to 2.66 days in the week ending October 19.

Delays were longest at Dongjiakou and Yantai ports as shipowners held off entry amid uncertainty over fee exposure and new US sanctions on terminal operators in Rizhao. Prolonged congestion could ripple through supply chains, slowing crude and bulk shipments as well as containerized chemical exports.

Global freight rates rebound after weeks of steady declines

Freightos raised the Global Container Freight Index after 4 weeks of decline. However, they still stood at the lowest level since late 2023, right before the Red Sea crisis erupted.

Drewry also raised its World Container Index by 2% this past week following 17 consecutive weeks of decline. The increase in both benchmarks was mainly driven by the gains in ex-China routes.

Freightos: China - US East Coast rises the most

According to Freightos, this route saw the largest increase among others last week. This increase comes even though carriers have reinstated much of the capacity idled during Golden Week.

Drewry, meanwhile, raised the index from Shanghai to both US East and West Coast by 1% last week, although they expect bigger rate hikes this week, driven by the general rate increase (GRI)s that carriers implemented. Drewry still sees this momentum as short-lived, with rates likely to ease soon; carriers may issue new GRIs on Nov 1 and 15 to stem the decline.

China - West Europe rates also surge

Xeneta puts forth that carriers have cut 13% of vessel capacity on the Far East–North Europe route since late August. At the same time, demand for space stayed strong, partly because some cargo that was originally bound for the US is being redirected to Europe after disruptions caused by the tariffs, port fees and the recent congestion. This imbalance is now driving freight rates higher, they said.

Freightos raised its rates for this route by 9% on the week while Drewry applied a 6% increase. According to Drewry, these increases follow an industry-wide effort by carriers that introduced new Freight All Kinds (FAK) rates effective 15 October to stop the market’s post-Golden Week rate slump.

Carriers prepare for November rate hikes but…

Reports from The Loadstar indicate that carriers are attempting to lock in higher rate levels before the next round of annual contract talks. Several major lines have announced fresh Freight All Kinds (FAK) increases and general rate hikes effective from 1 November.

Industry sources said the latest round of GRIs reflects carriers’ determination to reset the floor for spot markets after months of erosion. Many are trying to establish stronger reference points for 2026 contract negotiations, even if these gains prove short-lived.

Analysts note that carriers remain under pressure to defend margins as capacity returns and demand softens toward year-end. The recent increases may provide only temporary relief unless trade volumes improve or further blank sailings tighten the market in November.