International Shipping and Logistics Market Update Week 18/2026 | Phaata

International shipping and logistics market update - Week 18/2026

Table of Contents

1. World Container Index Week 18/2026

2. Asia - North America Ocean Freight Rates

3. Asia - Europe Ocean Freight Rates

4. Northern America - Asia Ocean Freight Rates

5. Northern Europe - Asia Ocean Freight Rates

6. Conclusions and Recommendations by Phaata

1. World Container Index Week 18/2026

Drewry’s World Container Index (WCI) for Week 18/2026 (from April 27 to May 3, 2026) continued its slight downward trend, decreasing by 0.72% compared to the previous week, settling at $2,216/FEU.

Drewry's World Container Index Week 18/2026 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

Supply and Demand:

Demand Side: 

The market is recording a seasonal surge in cargo volumes just ahead of the May holiday period. This upward pull coincides exactly with the point when new transport contracts officially take effect and cargo begins to flow.

Supply Side: 

Although overall space capacity across the market remains sufficient, the operational network has begun to exhibit localized bottlenecks on certain service loops or specific loading port clusters.

- Contract (NAC) Space Tightening: The space allocation pool for Named Account Contracts (NAC) is being strictly tightened by carriers.

- Disruption Warning: The convergence of carriers proactively ramping up blank sailing schedules and the operational transition to new contracts is forecast to create more chain-reaction disruptions than in the previous period.

Operations:

Equipment (Empty Container) Imbalance:

- 40'HC Supply Tension: At several origin ports, the supply of 40' High Cube (40'HC) empty containers is tightening. This stems from a slight uptick in localized demand, compounded by carriers proactively regulating and prioritizing empty equipment releases for high-paying export shipments bound for fast-growing markets like Africa and Latin America.

Rate Developments:

Ocean Freight rates from Asia to the North America West Coast in Week 18/2026 increased slightly by 0.18% week-on-week, up to $2,837/FEU. This rate is up 23.24% month-on-month, according to Xeneta data.

- Anchoring Floating Rates: The spot rate baseline continued its sideways trend through the end of April. Some carriers agreed to extend current rate levels into early May, while others only applied trickling, incremental hikes to test the market waters.

- Fuel Surcharge Matrix:

• The Emergency Bunker Surcharge (EBS) for the ocean leg remains in effect and is being reassessed by carriers on a bi-weekly basis.

• Notably, carriers have expanded the scope of EBS collection to include feeder services at non-direct loading/discharging ports.

• The Intermodal Fuel Surcharge (IFS) for intermodal transport is also currently applied. Fluctuations in these surcharges will closely track actual oil price developments.

• Carriers are considering restructuring their entire fuel surcharge strategy, including the potential application of clauses that lock in fees on a monthly cyclical basis.

- Peak Season Surcharge (PSS) Further Delayed: The PSS collection plan has once again been pushed back to the second half of May, with some carriers even signaling a delay until June 1. This continuous postponement confirms the market's true nature: despite a momentary spike in volume, actual total capacity supply still far exceeds purchasing power across the entire TPEB trade lane.

Stay tuned to Phaata International Logistics Marketplace for in-depth and fast market updates.

Asia-North America Freight Rates | Week 18/2026 (Photo: Phaata.com)

US Tariff Updates:

1. Evaluating IEEPA Refund System (CAPE) Performance in Week One Actual operational data from the CAPE system as of April 26 reveals massive technical risks in the declaration process, requiring the documentation department to audit data extremely rigorously:

- High Rejection Rate: Only 63% of entries passed the system's preliminary validation step. Out of the 13.3 million initially approved entries, approximately 2.1 million (nearly 16%) were subsequently failed by the system during line-item detail checks. The primary causes stem from data synchronization failures (ACE data) and submitting ineligible entries into Phase 1.

- Refund Timelines: Customs and Border Protection (CBP) expects to issue the first batch of tax refund transfers around May 11, 2026. Currently, 21% of total entries have been approved for IEEPA duty removal, and 3% have finalized liquidation to move to the disbursement process. Refunds will be transferred directly via the ACH portal to the Importer of Record's (IOR) account.

- Mandatory Operations to Protect Cash Flow:

• Handling Rejected Entries: If an unliquidated entry is rejected by CAPE, the business must immediately file a Post Summary Correction (PSC) to fix the error, and only then resubmit it to CAPE. (Note: Once an entry is accepted by CAPE, PSC usage is prohibited).

• Monitor Protest Deadlines: It is critical to closely monitor Protest filing deadlines for entries submitted to CAPE, in case CBP issues a last-minute rejection. Pay special attention to entries liquidated past the 80-day mark but still within the 180-day protest window (this group will be processed in Phase 2, which has no specific timeline yet).

2. Crucial Adjustments to Section 232 Tariffs (Metals)

- New Exemption for 0% Metal Content: The US Department of Commerce (DOC) officially issued an exemption from Section 232 tariffs (25% or 50%) for products under Chapters 72, 73, 74, and 76 that contain zero steel, aluminum, or copper content.

• This regulation is retroactively effective from April 6, 2026.

• The greatest impact of this rule applies to goods made from cast iron or ductile iron—such as bars, rods, conduits, and pipe fittings—which are not classified as "steel" in the HTS tariff schedule.

- Conditional Preferential Tariff Policy for Canada & Mexico: The DOC has begun accepting applications for Section 232 tariff reductions (from 50% to 25%) for steel and aluminum originating from Canada/Mexico. However, the accompanying supply chain binding conditions are exceptionally strict:

• The metal must be smelted and cast in Canada/Mexico, meeting USMCA origin standards.

• The manufacturer must commit to supplying this metal volume to newly opened automotive or medium/heavy-duty vehicle (MHDV) production lines within the US inland.

• Businesses must submit periodic quarterly reports. Failure to meet volume commitments will result in reliquidation of the entry and the retroactive clawback of the 50% tariff rate.

3. Geopolitical Risk Warning: US-UK Trade Tensions

On April 23, the US President issued a warning regarding the application of a "massive punitive tariff" on goods originating from the United Kingdom. This move aims to retaliate against the UK Government's maintenance of the Digital Services Tax (DST) on US tech corporations.

The threatened tariff level is declared to be higher than the $1.27 billion revenue the UK collected from the DST over the past year. Although no official decision has been made, businesses importing goods from the UK must incorporate this factor into their tariff barrier risk portfolio within their Q3 and Q4/2026 Procurement plans.

Stay tuned to articles on the Phaata International Logistics Marketplace for rapid and in-depth market updates.

3. Asia-Europe Ocean Freight Rates

Supply and Demand: 

Demand: 

Consumption demand in the Eurozone continues to weaken, under direct pressure from low consumer confidence indexes and exorbitant energy costs. The inventory replenishment cycle following the Golden Week holiday in Asia will serve as the decisive barometer for actual order volumes in the second half of May.

Supply: 

During the cycle from April 20 to May 24, the blank sailing ratio is anchored at 9%. The simultaneous combination of blank sailing orders and slow-steaming tactics has directly slashed between 15% and 16% of actual operational capacity across the entire trade lane.

Operations:

Breakthrough at the Red Sea Bottleneck: The majority of the fleet continues to avoid the Red Sea region, meaning the Cape of Good Hope routing continues to consume between 15% and 20% of fleet utilization. However, an operational turning point emerged when CMA CGM's Ocean Rise Express (OCR) direct service (connecting Japan and South China to North Europe) successfully called at the Port of Jeddah on April 26. This is the first FEWB voyage to transit the Suez Canal since the Red Sea crisis began.

Freight Rate Developments: 

Ocean Freight rates from Asia to Europe in Week 18/2026 decreased by 3.15% week-on-week, down to $2,463/FEU. This rate is down 10.18% month-on-month, according to Xeneta data.

Spot Rate Slide: After establishing a peak of $1,703 in Week 14, the Shanghai Containerized Freight Index (SCFI) continued its downward slide, retreating to the $1,497 mark in Week 18 (a drop of $4 from the previous week).

Price Anchoring Tactics and FAK Increase Plans: To halt the price slide, carriers decided to extend April rate levels into the first half of May. Notably, MSC issued a notice that it will increase FAK (Freight All Kinds) rates in the second half of May, though the specific increase level awaits a reaction from market purchasing power.

Consolidating the Price Floor: Overall, actual market freight rates have maintained a stable sideways margin. This achievement relies entirely on carriers' strict supply control discipline and maintenance of rigid capacity withdrawal ratios.

Stay tuned to Phaata International Logistics Marketplace for in-depth and fast market updates.

Asia-Europe Freight Rates | Week 18/2026 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

Ocean Freight rates from North America (West Coast) to Asia in Week 18/2026 continued to increase by 3.03% week-on-week, up to $646/FEU. This rate is up 9.49% month-on-month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 18/2026 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Ocean Freight rates from North Europe to Asia in Week 18/2026 increased by 4.55% week-on-week, up to $253/FEU. This rate is up 35.29% month-on-month, per Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 18/2026 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

The market landscape in Week 18/2026 shapes three operational trends and direct risks impacting the global supply chain:

- Divergence in Capacity: The Asia-North America route faces physical bottlenecks as holiday cargo volumes collide with Named Account Contract (NAC) space-tightening orders, causing localized 40'HC shortages. Meanwhile, the Asia-Europe route continues to see sliding prices due to weak purchasing power, forcing carriers to maintain a 9% blank sailing ratio to defend the price floor.

- Exploratory Signals in the Red Sea: CMA CGM's Asia-Europe direct service successfully transiting the Suez Canal on April 26 is the first practical stress test after months of blockade. While the Cape of Good Hope routing remains the default (consuming 15-20% of capacity), this event opens the possibility of a partial restoration of the arterial maritime route in the future.

- US Customs Audit Vulnerabilities: The 16% entry rejection rate by the CAPE system in its very first week of operation exposes massive risks in importers' ACE data reconciliation processes. Concurrently, new retroactive Section 232 exemption rules (effective early April) demand immediate reaction from documentation departments to prevent cash flow losses.

Recommendations from Phaata

Based on actual market volatility, businesses must immediately execute the following operations to optimize costs and protect their supply chains:

1. Transport and Booking Operations:

- 40'HC Procurement Tactic (Asia-North America): Immediately advance the timeline for securing bookings and locking in empty container release orders by at least 10-14 days at origin ports experiencing equipment shortages. Capitalize on booking cargo before carriers activate the Peak Season Surcharge (PSS), expected in late May or June 1.

- Lock in FAK Rates Early (Asia-Europe): Leverage the current downward margin in spot rates to negotiate and lock in FAK rates with carriers. This must be executed immediately before carriers (like MSC) implement rate hike orders in the second half of May to front-run the inventory replenishment rhythm following Golden Week.

- Utilize Tech Networks: Actively cross-reference freight rates, vessel schedules, and actual space availability on international logistics exchange platforms to find optimal routing solutions, particularly as space under long-term contracts (NAC) is being tightly squeezed.

2. Customs and Finance (US Market):

- Freeze CAPE Submissions Until Cross-Audited: Absolutely do not push entry data to the CAPE system prematurely. The import-export department must run a cross-audit process against ACE data to strip out ineligible entries. If errors are detected, it is mandatory to file a Post Summary Correction (PSC) to repair the data first, to avoid the risk of losing 100% of the IEEPA refund.

- Execute Section 232 Exemptions: The customs declaration department must immediately filter items under Chapters 72, 73, 74, and 76 that are made of cast iron/ductile iron (containing 0% steel, aluminum, or copper). Apply the new exemption rule to remove the 25% or 50% tariff rate for shipments arriving at port from April 6 onward.

- Establish Procurement Risk Barricades: The Procurement department needs to recalculate the Landed Cost spreadsheet for import orders from the UK in Q3/2026. Prepare financial contingency margins to respond to a scenario where the US imposes severe punitive tariffs to retaliate against the UK's Digital Services Tax (DST).

Stay tuned to articles on Phaata.com or Phaata fanpage for rapid and in-depth market updates.

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Source: Phaata -  Vietnam's First International Logistics Marketplace

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