August Freight Market Update
August 2026 Edition
Peak season is running hotter and earlier than usual across every major lane this August. Asia-origin capacity into Australia and New Zealand remains tight even as new services come online, the 1 August GRI is sticking on the transpacific, and the reignited Strait of Hormuz conflict has added a fresh layer of uncertainty to an already strained market. Typhoon season is compounding delays at Chinese ports across all three regions this month.
Ocean Freight, Australia
Capacity Still Tight as Peak Season Bites
Space out of the Far East into Australia was still tight through July, though two new services have since been added on the Asia to Oceania route: the A3X service from OOCL, ANL and COSCO, and Maersk’s new Qilin service. Typhoon season has also begun, which continues to cause port closures and further delays across the region. These additions are expected to help alleviate some of the pressure, but with peak season now underway, August is expected to remain tight on capacity regardless.
Blank Sailings and Rollovers
Two new services from Maersk and the A3 carriers started in July, and blank sailings are minimal this month simply because space is already so restricted with strong underlying demand. MSC’s Kangaroo service is suspended for the entire month. Evergreen, Hapag-Lloyd, HMM and ONE are blanking sailings across late July and into early August, ANL, COSCO and OOCL are blanking on the A3X string in early August, and PIL, Yang Ming and TS Lines are blanking in mid-August.
Access to Space
Space ex-China remains tight, with many rollovers into Oceania continuing. Peak season arrived earlier than expected this year, driven by a mix of frontloading, stock replenishment, and structural blank sailings and omissions from major carriers. Typhoon season adds a further layer of delay risk on top of this.
Rates
The Drewry World Container Index has increased and then dipped over the past four weeks, currently sitting at 4,374 USD per 40ft. The Shanghai Containerised Freight Index shows the global index at 3,063 and the AUNZ index at 2,233 USD/TEU. Xeneta’s intelligence puts the Shanghai to Australia rate at approximately 2,243 USD/TEU, a raw freight rate excluding surcharges and local charges.
Carrier Performance
Average transit times to Sydney and Fremantle over the last three months have varied considerably by string, with several services running well behind schedule and cancellation rates as high as 67% on some sailings, including MSC’s Kangaroo service.
Advice for Supply Chain Managers
- The Strait of Hormuz conflict appears to have reignited, adding further instability and uncertainty to freight markets. Build contingency time into your planning
- The A3 carriers and Maersk have each introduced an extra service from China into Australia’s East Coast, effective from late July. This should help ease pressure through August
- Book a minimum of four weeks in advance for cargo out of China
- Consider premium services or air freight if cargo is urgent, particularly given ongoing rollovers
- FAK rates have plateaued but remain elevated ex-Asia. Air freight demand is up 7% YoY, though capacity constraints are starting to ease slightly compared to previous months
Ocean Freight, New Zealand
Capacity and New Services
As with Australia, space out of the Far East into New Zealand was still tight through July, with the A3X service (OOCL, ANL, COSCO) and Maersk’s Qilin service now both running on the wider Asia to Oceania route. Typhoon season has begun and continues to cause port closures and further delays. These new services should help alleviate some pressure, but August is still expected to be tight given peak season is now underway.
Access to Space
Space ex-China remains tight with continued rollovers into Oceania. Peak season arrived earlier than expected this year, driven by frontloading, stock replenishment, and structural blank sailings and omissions from major carriers, with typhoon season compounding the delay risk.
Fuel Adjustment Factor Turning Up Again
Following several months of steady reductions, average Fuel Adjustment Factor (FAF) rates on the Australia to New Zealand corridor have started to increase again in recent weeks. We’re monitoring this closely and will keep clients updated on any significant movement.
Rates
The Drewry World Container Index sits at 4,374 USD per 40ft after increasing and then dipping over the past four weeks. The Shanghai Containerised Freight Index shows the AUNZ index at 2,233 USD/TEU. Xeneta’s data puts the Shanghai to New Zealand rate at approximately 2,253 USD/TEU, a raw freight rate excluding surcharges and local charges.
Carrier Performance
Average transit times to Auckland over the last three months have generally tracked close to schedule, with one string running around four days behind and a 25% cancellation rate on the COSCO/ML/ONE/OOCL rotation.
Advice for Supply Chain Managers
- The Strait of Hormuz conflict appears to have reignited, adding further instability and uncertainty to freight markets. Build contingency time into your planning
- The A3 carriers and Maersk have each introduced an extra service from China into Australia’s East Coast, effective from late July, which should flow through to improved options into New Zealand
- Book a minimum of four weeks in advance for cargo out of China
- Consider premium services or air freight if cargo is urgent
- FAK rates have plateaued but remain elevated ex-Asia. Air freight demand is up 7% YoY, though capacity constraints are starting to ease slightly compared to previous months
Ocean Freight, United States
1 August GRI Is Sticking
The 1 August GRI appears to be holding so far on both coasts. Rates are sticking due to carriers’ tight capacity management, typhoon-related port congestion, and capacity limitations stemming from the Panama Canal’s draft restrictions. More blank sailings are scheduled for late August to help carriers manage supply.
Blank Sailings Building Through August
Blank sailings are scheduled across both the US West Coast and US East Coast/Gulf through the weeks of 27 July, 3 August, 10 August and 17 August, with severity building as the month progresses.
Access to Space
Space remains balanced to tight across Asia and India lanes into both coasts, with equipment availability tracking similarly. Air freight ex-China into the US remains the tightest mode this month.
Rates
The Shanghai Containerised Freight Index shows market rates from CNSHA at 5,535 USD/FEU to the US West Coast and 8,040 USD/FEU to the US East Coast, figures that reflect freight rates only and exclude BAF, PSS or other surcharges. Xeneta’s index shows average market rates from CNSHA at 4,423 USD/FEU to the West Coast and 7,391 USD/FEU to the East Coast, on the same surcharge-exclusive basis.
Carrier Performance
Transit times to Los Angeles have generally held close to schedule over the last three months, though several East Coast strings into New York/New Jersey have run well behind, with cancellation rates as high as 57% on some rotations.
Advice for Supply Chain Managers
- The full 1 August GRI is sticking so far, driven by tight capacity management, typhoon-related port congestion, and Panama Canal draft restrictions. Budget rates accordingly through August
- Another GRI on 15 August for the US East Coast/Gulf will likely be successful, while US West Coast rates may remain firm rather than move sharply either way
- Carriers are heavily adjusting service strings, omitting and adding port calls on particular vessels to better manage demand and capacity. Expect continued schedule volatility
- Make bookings with plenty of notice, especially ex-China and ex-India, as space is expected to stay constrained for several more weeks
- Consider premium services or air freight for urgent cargo. FAK rates remain elevated with no sign of reprieve in August, though capacity constraints are starting to ease slightly and air freight demand is up 7% YoY
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