Global Market
- Container shipping is showing early signs of a large-scale return to the Red Sea in 2026, as several carriers begin testing the route and adjusting transit times. A broad resumption of Red Sea transits would release significant vessel capacity back into the market, exacerbating the existing oversupply of container shipping and adding further downward pressure on freight rates.
- Potential knock-on effects of carriers’ return to the Red Sea include heightened risks of port congestion, as well as operational challenges for shippers in managing cargo that may arrive earlier than originally scheduled. Meanwhile, spot rates from Shanghai to New York and from Shanghai to Los Angeles remained stable following last week’s double-digit increase. Transpacific rates are expected to stay broadly steady in the coming week.
