Container shipping rates surged in the third quarter. The shipping industry attributed this to the "El Niño effect causing a severe drought in the Panama Canal, widespread blank sailings by global carriers, stabilized cargo volumes, and the implementation of green shipping regulations." As a result, container shipping prices are expected to continue rising. Industry insiders predict that short-haul routes like the US West Coast could see rates for each FEU (40-foot container) rise to around $2,000, while the US East Coast rates may surpass $3,000.

Industry players anticipate further rate hikes in August, not only in the previously announced Europe routes by Maersk but also in North American routes like the US West and East Coast. The severe drought in the Panama Canal due to the El Niño phenomenon is considered a significant factor driving up rates on the US East Coast.

While the high rates may benefit major carriers like Evergreen and Yang Ming this season, they pose significant challenges and pressure to the international trade and transport sector as they may lead to price increases for products and affect the stability of global supply chains. Companies should closely monitor the situation and adopt appropriate operational strategies to ensure a stable business operation in the face of such price fluctuations.