Date: September 2026
Dear Valued Customers and Partners,
Thank you for your continued trust and support.
Today, we would like to share with you an honest assessment of the current state of the international shipping market. This is not a routine update, but rather a thoughtful observation based on our years of industry experience – offered in the hope that it will provide useful reference for your upcoming procurement and shipment planning.
Many of our customers have already noticed that freight rates this year have not only remained stubbornly high but also show no clear sign of easing. We want to be direct with you: this is not a typical peak‑season surge, but a systemic capacity crisis driven by multiple structural factors converging at once.
Three factors are simultaneously at play:
Ongoing tensions in the Middle East have forced a large number of container vessels to abandon the Suez Canal route and reroute via the Cape of Good Hope. This diversion adds 10 to 15 days per voyage and drives up fuel costs by $200,000 to $300,000 per vessel. The resulting drop in vessel turnaround efficiency is equivalent to a significant portion of global capacity being "removed" from the market almost overnight.
The Panama Canal has imposed transit restrictions due to persistent drought, effectively blocking two of the world's most vital shipping arteries simultaneously. Currently, port congestion has trapped over 4.3 million TEUs of global capacity, with vessel waiting times at major ports exceeding 5 days on average. A large number of ships are "visible but unusable," further compressing effective supply.
On top of these structural issues, traditional peak seasons – Christmas and New Year – have arrived, intensifying competition for already tight space. Freight rates on some routes have exceeded $10,000 per FEU. More importantly, industry consensus suggests that these structural factors are unlikely to ease significantly in the short term – meaning that even after the peak season passes, rates are unlikely to return quickly to the levels we have been accustomed to.
For the past decade or more, we have grown accustomed to relatively stable and predictable freight rates. But the changes we have witnessed this year serve as a strong signal: the era of low rates and high certainty is coming to an end. High volatility, elevated costs, and longer lead times are becoming the new normal.
This is not alarmism. Shipping lines are slowing down vessel speeds and actively managing capacity to cope with cost pressures. Port congestion shows no systemic improvement in sight. Geopolitical risk premiums have become deeply embedded in freight pricing. All indicators point to the same direction – the shipping market will be more complex and less predictable than ever before.
In the face of such an uncertain market, we sincerely offer the following three recommendations:
1. Confirm order plans as early as possible. You do not need to wait until production is fully completed. As soon as you have an intention to ship, please inform us early. Forward planning allows us to monitor space availability, coordinate vessel schedules, and secure more flexible logistics arrangements on your behalf.
2. Build in sufficient transit time. Current total transit times from Asia to destinations such as the US West Coast now typically require 40 to 50 days or more. Advancing your stock replenishment not only ensures you do not run out of inventory during peak demand but also helps spread logistics costs more effectively.
3. Keep communication and information flow open. Markets move fast, and timely information is a valuable resource. We will continue to track shipping developments closely and share relevant intelligence and recommendations with you.
Market fluctuations cannot be controlled by any single party, but how we respond to them is a choice. In a volatile environment, we aim to be your most reliable pillar of support – not only in terms of cargo handling, but also in terms of information and decision‑making.
Whether you are planning shipments to any global port or have any order requirements for container plywood flooring and container spare parts, please do not hesitate to reach out to us. We will continue to provide you with timely market intelligence, so that you can make your shipping decisions with greater confidence and less uncertainty.
Better preparation to address market uncertainty – that is our most sincere recommendation to you in 2026, and it is our commitment to ourselves as well.
Wishing you a smooth and successful season ahead!
Sincerely,
