Market Report - 9/2026

Amidst heavy demand and persistent drought conditions, the Panama Canal Authority is making significant changes to the waterway:

• Allowing the same customer to secure more than one NeoPanamax booking slot for the same date, or to book slots for two or more consecutive dates.
• Lowering the waterway’s draft (underwater depth) to compensate for drought conditions: the maximum draft is 47.5 feet (14.48 meters) as of September 3^rd.
• Cutting daily ship transits: 32 vessels per day starting September 15^th, as compared to the current 36.

In response, ocean carriers are increasing container fees since vessels must carry less cargo, so their hulls can accommodate the shallower draft.

The graphic shows the average auction price for transit slots on the Panama Canal, by lock size. A shipper recently paid $5.3M to secure its spot, a new record that broke the previous one set last month.

Source: Argus, Financial Times.  

U.S. East Coast Trends

• Drayage rates at U.S. East Coast ports have increased due to frontloading and driver shortages.
• Rates for the Asia-U.S. East Coast trade are +42% since the start of the Iran war and are now >$3,300 higher than West Coast prices ($10,527 as compared to $7,193).

Source: Drayrates-JOC National Drayage Price Index, S&P Global.

Chinese trade with Latin America has grown from just over $14B in 2000 to >$500B in 2024, overtaking the U.S. as South America’s top trading partner, although the U.S. still remains dominant in Mexico, Central America and the Caribbean.

U.S. merchandise imports climbed 3.7%, fueled by the largest increase in capital goods since 1993. Capital goods include computers and accessories, semiconductors, and telecommunications equipment.

Source: Commerce Department, Bloomberg.  

The Trump Administration imposed 100% tariffs on certain unmanned aircraft systems (UAS), commonly known as drones, and their components due to their potential as a national security threat.

• The duties take effect September 3rd and will apply to drones with a maximum takeoff weight of >55 pounds, as well as systems with thermal imaging capabilities.
• A 25% tariff will be imposed on smaller drones and components without defense capabilities.

Drones imported from key U.S. allies—the UK, EU members, Japan, South Korea, Switzerland and Taiwan—will be charged a reduced 10-15% rate if the drones’ hardware and software meet certain criteria.

The U.S. government has overhauled the rules for its Title XI ship and shipyard financing program, trimming them significantly.

• The U.S. Maritime Administration (MARAD) wants to simplify a program used to guarantee debt for U.S.-flag ships that are constructed, reconstructed, repaired or reconditioned at American yards.
• MARAD also changed the way foreign components are handled: projects can now continue through processing and approval while a waiver covering foreign-sourced equipment remains outstanding. Major foreign components forming part of a vessel’s hull or superstructure still remain outside the waiver regime.

Louisiana Investments Reshape Gulf Coast Trade

The Louisiana International Terminal (LIT) is poised to reshape Louisiana’s role in global trade and strengthen its port and logistics ecosystem. The terminal will significantly expand port capacity and modernize regional logistics infrastructure, connecting key inland markets via road, rail, and river systems.

The U.S. Army Corps of Engineers recently approved the construction permit for the Louisiana International Terminal (LIT). The LIT project is one of the largest federal investments in a U.S. container terminal to date.

Located in St. Bernard Parish, 16 miles down the Mississippi River from the current port in New Orleans, the new terminal will not have the air-draft limits of the current port. With a 55’ depth, the LIT is designed to berth two neo-Panamax container ships, each with up to 16,000 TEUs of capacity, and will be able to handle 2 million TEUs annually at full capacity.

The newly proposed St. Bernard Transportation Corridor would create an elevated roadway that connects the 400-acre terminal in Violet, Louisiana, directly to Interstate 510. Designed to facilitate efficient container movement and ease local congestion.

European Airlines Expand Lead on Cleaner Fuels 

Despite progress in SAF consumption, the global shift to cleaner jet fuel is slower than expected, with SAF accounting for just 0.6% of jet fuel worldwide last year and expected to rise to only 0.8% this year. 

Note: Ryanair’s figure is for its FY’26, which ended in March. Source: Company reports and interviews.  

U.S. Working to Make Nuclear-Powered Vessels Commercially Viable

The U.S. Department of Transportation’s Maritime Administration (MARAD) is working to make nuclear-powered merchant ships commercially viable. The U.S. wants to build a complete commercial ecosystem for Small Modular Nuclear Reactors (SMR) within commercial shipping and is actively soliciting information about the regulatory, shipyard, insurance, and port frameworks needed to make it happen.

• The U.S. government signed a public/private agreement with Core Power to accelerate development of nuclear propulsion for shipping. The agreements will design a regulatory framework that enables speedy licensing, availability of insurance, port access, and high standards of safety.
• The collaborators want to build a fleet of 50 nuclear-powered merchant vessels—a mix of LNG tankers and container ships.