Freight Market Update – May 2026
As of mid-May, transpacific freight markets are facing tighter capacity, rising rates, fuel volatility, and new China regulatory requirements, with further GRIs and Peak Season Surcharges expected into June.
This Month:
- Carriers implemented 10–15% blank sailings to support mid-May General Rate Increases (GRIs).
- Capacity is tightening, particularly to the U.S. West Coast and North China origins.
- Ongoing Strait of Hormuz disruptions continue to pressure bunker fuel supply and operating costs.
- Fog-related closures in China and Southeast Asia congestion are impacting vessel schedules.
- Additional GRIs and Peak Season Surcharges (PSS) are expected heading into June.
Download the May 2026 Freight Market Update [PDF]
Global Freight Market Overview
As of mid-May, the transpacific ocean freight market is experiencing tightened capacity driven by increased blank sailings and ongoing contract negotiations. Despite broader overcapacity trends for the year, carriers are continuing to push for higher short-term rates through new GRIs effective May 15.
Fuel volatility remains a major concern as the continued closure of the Strait of Hormuz tightens bunker fuel supply across Asia. Rising fuel costs are contributing to increased operating expenses and additional pricing pressure throughout the market.
Capacity & Operational Conditions
Space availability is tightening, particularly to the U.S. West Coast. While vessel space from major China origins remained relatively stable earlier in May, inland origins and North China ports are now under increasing pressure.
Vietnam continues to experience controlled allocations, while congestion at Southeast Asian hubs and vessel displacement are impacting departure reliability and transit schedules.
In China, fog-related closures at Qingdao and Shanghai have disrupted operations, resulting in vessel wait times and ongoing schedule delays.
Contract Negotiations & Rate Trends
Carriers remain focused on defending higher pricing during the 2026–27 contract negotiation cycle, despite reports showing average rates declined during Q1 2026. Retail restocking and manufacturing exports are also contributing to stronger early demand patterns, with Peak Season Surcharges already being implemented across several trade lanes.
China Regulatory Changes
New regulations effective May 1 are adding additional compliance requirements for shipments moving through Chinese ports.
Under China’s updated Hazardous Chemicals Safety Law, all DG exports must include electronic traceability codes generated through the national platform. Customs will not release cargo without valid codes, and both shippers and forwarders may face penalties for non-compliance. These changes are expected to add two to three working days to production-to-shipment timelines.
China’s updated Maritime Code also expands liability provisions for contracts involving Chinese ports, including broader responsibility for terminal operators in cases involving cargo loss or damage.
Looking Ahead
The market is expected to remain volatile into June as carriers continue managing capacity through blank sailings while fuel costs and congestion pressure schedules further. Additional GRIs and Peak Season Surcharges have already been announced, and upward rate adjustments are expected to continue.
Early bookings and schedule flexibility remain strongly recommended.
Contact J.M. Rodgers
For guidance on navigating current market conditions or to discuss your transportation strategy, contact the J.M. Rodgers team to explore tailored ocean, air, and inland logistics solutions.