Market Pulse 2026 Week 30

While Houthis choke the Bab el-Mandeb to Saudi oil exports, containerships are still using the strait to deliver cargo to Jeddah and other Red Sea ports with several carriers including Maersk and CMA CGM also sticking to their trans-Suez transits. The pause in military exchanges is providing little clarity on the direction of the market, although container freight futures anticipate freight rates to drop from their recent peaks despite the recent rise in fuel prices. Despite this, charter rates have continued to edge upwards with containerships still in short supply and port congestion remaining elevated as typhoons hit South China adding to the backlog of ships that are off-schedule in the Far East.

Cargo demand remains firm including the transpacific where the new Section 301 tariffs for US imports ranging from 10% to 12.5% that replaced the temporary 10% Section 122 tariffs from 24 July are not expected to have a significant impact on US container volumes. Cargo bookings remain very strong and freight rates are still holding up relatively well although the influx of extra loaders in the West Coast has driven carriers to discount rates.

Houthis’ Saudi blockade has not deterred container carriers from the Red Sea
The week-old Houthi naval blockade on Saudi Arabia has not deterred container carriers from the Bab el-Mandeb, with 54 containership transits through the strait in the last 7 days. Amongst the main carriers, CMA CGM, Maersk and Wan Hai have continued their trans-Suez voyages with no change to vessel routing planned in the coming week based on their latest vessel schedules. The situation remains fluid and any further escalation in the Middle East conflict could drive out these ships from the Red Sea and add to further the vessel shortage as they seek alternative routes.