June 25th, 2026 – Container freight rates from Brazil to the United States have risen sharply in recent months, increasing by roughly 50% as ocean carriers reduced capacity following a slowdown in bilateral trade caused by U.S. tariff measures.
Spot rates from Santos, Brazil, to ports along the U.S. East Coast have climbed above $3,000 per FEU, compared with less than $2,000 during the first quarter of the year. Market conditions have been further supported by Brazilian exporters accelerating shipments ahead of potential new U.S. tariffs that could take effect in late July. The proposed measures include a 25% tariff on many Brazilian exports, in addition to a separate 12.5% duty affecting several U.S. trading partners.
According to an analysis by S&P Global Market Intelligence, businesses are expected to continue frontloading shipments and redirecting trade toward alternative markets as companies adapt to a more restrictive trade environment between Brazil and the United States.
The stronger freight market is not limited to Brazil. Other East Coast South American countries are experiencing similar conditions, prompting Hapag-Lloyd to announce a $300-per-container rate increase for cargo moving from Argentina, Paraguay, and Uruguay to North America effective July 5th.
Data from Platts shows freight rates from the East Coast of South America to the U.S. Gulf Coast have surged from $975 per FEU in late February to approximately $2,400 per FEU this week.
Carrier capacity reductions have played a major role in supporting higher rates. Following the introduction of U.S. tariffs on Brazilian goods last year, Mediterranean Shipping Co. significantly reduced capacity on the trade lane, while Maersk and Hapag-Lloyd also trimmed sailings. MDS Transmodal data indicates MSC has reduced deployed capacity between the East Coast of South America and the East Coast of North America by 27% over the past year, falling from 32,328 TEUs in July 2025 to 23,513 TEUs currently. CMA CGM and Cosco have also made modest capacity reductions during the same period.
While capacity has recently begun to recover, earlier reductions were substantial. Xeneta’s eeSea data shows deployed capacity from the East Coast of South America to North America fell to 85,902 TEUs in February, marking the second-lowest level recorded in the past three years. Planned capacity for July has rebounded to 137,446 TEUs, representing the highest level seen on the trade lane in more than three years.
The tariffs introduced last year triggered a prolonged decline in Brazilian exports to the United States, lasting approximately 10 months. Trade volumes showed some improvement after tariffs were temporarily suspended in April, but industry participants remain cautious. If new tariffs are implemented and cargo volumes weaken again, freight rates are expected to follow the downward trend.
Despite the broader challenges, containerized exports from South America to the U.S. East Coast increased in May. PIERS data shows volumes reached 71,630 TEUs, an 11% increase compared with April.
Some businesses have experienced a more severe decline in trade activity than official statistics suggest. In certain sectors, shipment volumes have fallen between 30% and 50% from normal levels as U.S. customers increasingly shift production sourcing to countries facing lower tariff barriers than Brazil.
West Coast South America–U.S. West Coast Trade Remains Resilient
On the West Coast of South America, freight rates to the U.S. West Coast have also strengthened modestly, supported by healthy trade flows involving countries such as Chile and Peru.
Market participants report that freight rates have edged higher since the beginning of the year, although abundant vessel capacity has prevented more significant increases. Current all-in freight rates between Los Angeles and Valparaiso are approximately $1,700 per TEU and $3,750 per FEU southbound, while northbound rates average around $1,500 per TEU and $3,400 per FEU.
The moderate increase in rates, estimated at several hundred dollars since January, appears to be linked to stronger demand and adjustments to bunker fuel surcharges.
Capacity on trade routes connecting South America and the West Coast of North America remains relatively stable. MDS Transmodal data shows more than 484,000 TEUs are scheduled for deployment this month, slightly below the 492,000 TEUs available during the same period last year.
Trade between Chile and the United States has been particularly strong throughout 2026. U.S. exports to Chile, largely consisting of industrial products, have increased by 20% year over year. Chilean exports to the United States, including seafood and metal products, have risen by 10% during the same period, according to official trade statistics.
