Global Logistics Update: August 3, 2026

Asia-US ocean carriers implemented another rate increase on August 1, and rates so far are holding at higher levels. Space remains tight on all trades, especially to East and Gulf Coast destinations. Fixed/long-term contract allocation continues to be limited by the carriers in favor of higher spot space. On the India-US trade, rates have been rising due to service and capacity cuts by ocean carriers.

The demand outlook remains unclear. Many analysts expected a weakening of the market by August, but volumes appear stable for now, though a shift is possible at any point.

Carriers are also announcing Panama Canal surcharges for services transiting the canal. This is the beginning of another El Niño cycle; water levels are low and expected to deteriorate over the next several months. Canal slot auction costs are up and continuing to rise. We expect carriers will begin to limit cargo weight on these trades as well, prioritizing lighter cargo.

In Europe, the Rhine River is also experiencing low water levels, resulting in surcharges and concerns that the waterway may become impassable. Such an extreme development would create even more congestion at European ports and rails throughout the region.

Truck capacity in the US remains tight and costly. There is no shortage of capacity constraints and disruptions currently. We highly recommend early bookings, with 4-6 weeks being the ideal window.

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Your CVI team is here to assist you through these current market challenges. Ocean freight, air freight, domestic road/rail, and Customs Compliance – count on our dedicated professionals to care for you and your supply chain. Call us and let us show you what we can do!

Rachel Shames
VP, Pricing & Procurement
CV International, Inc.