Asia-US Freight Rates Heat Up: US Considers Jones Act Waiver as FMC Scrutinizes Carrier Surcharges

The ocean freight market this week recorded a predominantly upward trend in rates on routes from Asia to the US. Simultaneously, escalating geopolitical tensions between the US and Iran have forced the US government to consider waiving the Jones Act to stabilize crude oil prices. In a separate development, the Federal Maritime Commission (FMC) is putting carrier surcharges in its "crosshairs" to ensure there are no violations of US law.

The Container Freight Picture: Localized Congestion and Consequences

Overall, container freight rates trended upward this week. Rates to the US West Coast (USWC) ranged from $1,750 to $2,500/FEU, while East Coast (USEC) rates sat between $2,500 and $3,080/FEU.

On the Freightos platform, West Coast rates jumped 10%, whereas East Coast rates dipped 9%. Assessing the disruption caused by the Strait of Hormuz closure, Judah Levine, Head of Research at Freightos, noted that the disruption is largely confined to containers currently en route to the region or stranded at Gulf ports. He shared: "Ports in countries like India and Bangladesh – significant exporters to the Gulf states – are reporting backlogs,” Levine said. “And yard utilization levels are increasing at transshipment hubs in Asia where some Gulf-bound containers are now being diverted."

According to Drewry data, rates to both coasts ticked up slightly due to the prolonged conflict. With seven blank sailings scheduled for next week on Transpacific routes, spot rates are poised to rise further.

Meanwhile, Xeneta recorded a slight week-on-week rate decrease, but Peter Sand, Xeneta’s Chief Analyst, emphasized that the "shocks" are still rippling through: "Carriers have cancelled services into the Arabian Gulf, but supply chains do not stop. Some shippers simply cannot pull the plug – they need their cargo to keep moving,” Sand said. “Alternative ports like Nhava Sheva in India are being used as temporary storage and transshipment points, bringing cargo closer to the Gulf. Congestion is building and is toxic for supply chains as carriers and shippers try to identify the least worst option for their cargo."

Freight Right Logistics' TFX index saw a slight drop, but CEO Robert Khachatryan noted that the expected post-Lunar New Year rate slump failed to materialize. The NYFI index ticked up slightly, while the SCFI (Shanghai-origin) surged nearly 15%. Notably, container rate dynamics directly impact the chemical sector, especially polymer commodities (PE, PP) bagged in containers or liquid chemicals transported via isotanks.

US Considers Jones Act Waiver

Facing the pressure of escalating crude oil prices, US President Donald Trump is reportedly considering waiving the Jones Act. Enacted in 1920, this law mandates that vessels transporting goods between US ports must be domestically built, owned (at least 75%), flagged, and crewed primarily by US citizens.

Waivers are typically granted during crises. If approved, this 30-day exemption would primarily apply to vessels carrying crude oil, gasoline, diesel, LNG, and fertilizers.

FMC Puts Carrier Surcharges in the Crosshairs

The Federal Maritime Commission (FMC) affirmed it is closely monitoring the shipping situation through the Strait of Hormuz. An FMC representative stated: "Under its statutory authority, the commission ensures that rates, charges, and rules that common carriers have implemented as a result of the threats to commercial shipping in the Strait and neighboring waters do not violate the Shipping Act,"

Regulations require carriers to provide at least 30 days' advance notice before implementing tariff changes that increase shipper costs. The Alliance for Chemical Distribution (ACD) has urged the FMC and the Surface Transportation Board (STB) to monitor this issue closely. Eric R. Byer, President and CEO of ACD, expressed deep concern: "ACD is particularly concerned about the rise in surcharges, given the history of ocean carriers leveraging crises to increase profits rather than recovering costs."

Byer also warned of a secondary wave of surcharges from the rail network in intermodal shipments: "These issues significantly impact intermodal shipments, as freight rail carriers often impose additional surcharges, forcing intermodal shippers to pay a second wave of fees. The ambiguity in regulatory oversight of rail carriers during intermodal shipments makes this a difficult issue for shippers, who have little recourse when these surcharges may be improper."

Liquid Chemical Tankers Under Heavy Pressure

The US Gulf (USG) chemical tanker market also recorded rising freight rates driven by the Middle East conflict:

● USG to Brazil: Entirely reliant on contract cargo. The spot market is quiet due to a lack of space. Large parcels like ethanol and MEG are slated for April loading.

● USG to ARA (Europe): Rates surged sharply due to high bunker prices and extremely tight capacity. Many traders are forced to split parcels across different vessels.

● USG to Asia: Nearly fully booked until early April. Rates are up, with several large EDC and glycol parcels fixed for the second half of March.

● USG to India: Spot rates have been driven sky-high as shipowners offer unrealistic prices, focusing instead on stable contract volumes to dodge risks.

Volatile bunker fuel prices are forcing shipowners to either add Bunker Adjustment Factor (BAF) clauses or bake this cost directly into base freight rates.

See more:

• Gulf Crisis: Maersk and MSC Suspend Routes, Freight Costs Face Threat of Skyrocketing
• Maersk Implements Sweeping Peak Season Surcharges Across Multiple Key Trade Lanes
• Maersk Suspends Cargo Bookings Across Multiple Gulf Nations Amid Hormuz Blockade Crisis
• India: 95% of Trade Dependent on Foreign Fleets and the Ambition to Turn the Tide
• West Asia Tensions: Indian Exporters and Shipping Lines in Heated Standoff Over 'War Surcharges'
• Tanger Med Port Rises to Strategic Hub Status Amid Global Maritime Crisis
• Rate Volatility: CMA CGM Announces Sweeping Adjustments to FAK Rates and Peak Season Surcharges Across Major Trade Lanes
• Carriers Impose $4,000/FEU Surcharge in the Middle East: Indian Exporters Appeal to Government for Help
• The Cape of Good Hope Route: Becoming the 'New Normal' for Global Shipping?
• Middle East Crisis: MSC Declares Emergency "End of Voyage" for Gulf-Bound Cargo, Imposes $800 Surcharge
• COSCO schedules: Vietnam - North America in Mar 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Mar 2026
• Iran Crisis Triggers Energy Shock: Global Oil and Gas Prices Soar, Maritime Transport Paralyzed
• Hormuz Crisis: 10% of Global Container Fleet Stranded, Risking Severe Supply Chain Disruption
• International Shipping and Logistics Market Update Week 9/2026 | Phaata

Source: Phaata.com (According to ICIS)

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