Latest news with #Asia-Europe
Yahoo
02-07-2025
- Business
- Yahoo
China trade outlook improves, container rates — not so much
As the July 9 deadline for the end of the China-U.S. tariff pause speeds closer, the outlook for the trans-Pacific ocean trade is less than clear. Although tariffs and other details are not known, President Donald Trump said that the U.S. has signed an agreement with China that will see a resumption of the latter's trade in rare earth minerals in exchange for the U.S. ending some countermeasures. The administration said it plans to finalize negotiations with its top 10 trade partners after July 4 and may unilaterally impose tariffs on other nations soon. A tariff reduction on Chinese goods by the U.S. on May 12 led to a rebound in China-US container volumes, but this seems to be losing momentum, SONAR data partner and shipping analyst Freightos said in an update. Carriers, possibly anticipating a more prolonged demand surge, have increased capacity on the trans-Pacific, particularly to the U.S. West Coast, which now appears out of balance with demand. While SONAR data shows loaded containers departing China for West Coast ports approaching record levels, freight rates have suffered a precipitous drop amid weeks of weakening demand. Freightos said that between late May and mid-June, rates for Asia to North America West Coast containers surged by over $3,000 per forty foot equivalent unit (FEU), or 115%, to $6,000. However, by the end of last week, a combination of demand and capacity issues caused a sharp decline in the average rate to $3,388 per FEU, which is 43% below June's peak, though still 22% higher than late May. East Coast rates saw a similar, though less dramatic, trend. They surged 80% from late May to mid-June, reaching approximately $7,200 per FEU but fell 15% to $6,116 by the end of the month. This significant drop in rates, occurring early in the typical peak season, has led carriers to consider reducing capacity. Freightos Head of Research Judah Levine in a note said that even with these tariff-driven pressures that pushed rates up sharply in June, the peaks for both lanes were at least $1,000 per FEU lower than a year ago, and may indicate overall capacity growth in the container market. Asia-Europe and Mediterranean rates both concluded June with a 25% month-on-month increase, reaching $2,969 and $4,222 respectively. Red Sea diversions initiated an earlier peak season on this lane, with port congestion and capacity shifts to the trans-Pacific contributing to rate increases in early and mid-June. However, rates on both lanes cooled by month-end, suggesting market conditions may not support upcoming July general rate increases (GRIs) by carriers. Despite this, liner plans for significant capacity reductions — unusual for peak season — could still facilitate additional rate hikes. Similar to the trans-Pacific, current rates on these lanes are substantially lower than a year ago, indicating that increased capacity is exerting downward pressure on rates, even as carriers continue to avoid the Red Sea. But other market sources say container rates out of China are even lower. 'Spot rates dropped to somewhere between $2,000 to $2,500 (depending upon carrier) and have hovered around $2,500 for two weeks now,' said consultant Jon Monroe in a LinkedIn post. 'Rates have fallen fast, space out of China's base ports is wide open, and so far, carriers haven't flexed their capacity control muscle to put the squeeze on the market.' Monroe added that carriers that recently jumped into the trans-Pacific are offering rates at or just below $2,000 to the West Coast. 'The gap between East Coast and West Coast rates has settled back to normal, at about $1,000,' Monroe said. 'Right now, everyone's just sitting tight, waiting to see what Trump decides to do with tariffs.' Find more articles by Stuart Chirls 44% fewer cancelled sailings could be [blanking] bad news for SoCal trucking US maritime chief 'not a big fan' of ocean carriers' 'approach' as agency reviews antitrust immunity Drewry: No 'lasting impact' from tariff break as ocean rates fall again With Mideast shipping on high alert, Maersk re-opens Israel port The post China trade outlook improves, container rates — not so much appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Barnama
26-06-2025
- Business
- Barnama
MIDF Amanah: Strait Of Hormuz Closure Poses Limited Risk To Malaysia
KUALA LUMPUR, June 26 (Bernama) -- The possible closure of the Strait of Hormuz following the recent Iranian parliamentary vote poses limited risk to Malaysia, said MIDF Amanah Investment Bank Bhd. In a note today, the investment bank said that Malaysia's main Asia-Europe trade corridor, which contributes less than 15 per cent to the total volume at Westports, bypasses Hormuz entirely. 'Short-term port congestion and berth delays may still occur if rescheduled calls and feeder realignments spill into the region in the second half of 2025 (2H 2025).
The Sun
26-06-2025
- Business
- The Sun
Strait of Hormuz closure poses limited risk to Malaysia, says MIDF Amanah
KUALA LUMPUR: The potential closure of the Strait of Hormuz following Iran's parliamentary vote presents minimal risk to Malaysia, according to MIDF Amanah Investment Bank Bhd. In a research note today, the bank highlighted that Malaysia's primary Asia-Europe trade route, accounting for less than 15 per cent of Westports' total volume, does not rely on the Hormuz passage. 'Short-term port congestion and berth delays may still emerge if rescheduled vessel calls and feeder realignments affect the region in the second half of 2025 (2H 2025),' the bank noted. While Red Sea shipping has stabilised, rising tensions in the Strait of Hormuz introduce new risks to regional container flows. This follows Iran's parliamentary decision to close the strait in response to US strikes on its nuclear facilities. A closure would block access to key Gulf ports like Jebel Ali and Dammam, forcing shipping lines to either halt Gulf operations or reroute through alternative, capacity-constrained hubs. 'This could lead to temporary vessel bunching and higher yard usage at regional transhipment hubs as carriers adjust routes, reposition empty containers, and manage scheduling disruptions,' MIDF Amanah added. Despite these challenges, the bank maintained a 'neutral' outlook for the port and logistics sector, citing short-term tariff relief and persistent risks such as weak European demand, vessel overcapacity, and geopolitical instability.
New Straits Times
26-06-2025
- Business
- New Straits Times
MIDF: Strait of Hormuz closure poses limited risk to Malaysia
KUALA LUMPUR: The possible closure of the Strait of Hormuz following the recent Iranian parliamentary vote poses limited risk to Malaysia, said MIDF Amanah Investment Bank Bhd. In a note today, the investment bank said that Malaysia's main Asia-Europe trade corridor, which contributes less than 15 per cent to the total volume at Westports, bypasses Hormuz entirely. "Short-term port congestion and berth delays may still occur if rescheduled calls and feeder realignments spill into the region in the second half of 2025 (2H 2025). "While Red Sea shipping routes have largely normalised, heightened tensions in the Strait of Hormuz present a fresh risk to regional container flows, following a recent Iranian parliamentary vote to close the Strait in retaliation for United States strikes on multiple nuclear facilities inside Iran," it said. MIDF Amanah said that the closure would block access to major Gulf ports, such as Jebel Ali and Dammam, forcing shipping lines to either suspend Gulf calls or reroute cargo through alternative hubs with limited capacity. "This may cause temporary vessel bunching and higher yard utilisation at regional transhipment hubs as shipping lines adjust loops, reposition empty containers, and manage scheduling disruptions," it said. However, MIDF Amanah said that the outlook for 2H 2025 remains fluid, as the tariff reprieve is short-term and downside risks persist, including weak European demand, vessel overcapacity, and geopolitical disruptions that could dampen momentum. The bank maintained its "neutral" call for the port and logistics sector.
Business Standard
23-06-2025
- Business
- Business Standard
Markets Eye Modest Gains Amid Mideast Tensions, Mixed Global Data
U.S. futures point higher as traders watch Israel-Iran conflict; Philly Fed signals weak growth, gold dips sharply and Asia-Europe markets diverge. The Nasdaq inched up 25.18 points (0.1%) to 19,546.27, the S&P 500 edged down 1.85 points or less than a tenth of a perecnt to 5,980.87 and the Dow slipped 44.14 points (0.1%) to 42,171.66. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2%. Stocks may open higher as traders closely monitor the escalating conflict between Israel and Iran. The White House is expected to decide within two weeks whether to support Israeli military actions. As the conflict enters its eighth day, both nations continue to exchange missile and drone attacks. The Philly Fed reported its diffusion index for current general activity remained unchanged in June at -4.0, signaling continued contraction. Economists had expected a slight improvement to -1.0. Looking ahead, future indicators show weaker growth expectations, with the future activity index plunging to 18.3 from 47.2 in May. The Conference Board will release its report on leading economic indicators in the month of May. The leading economic index is expected to edge down by 0.1% in May after slumping by 1% in April. Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index dipped by 0.2%, while Hong Kong's Hang Seng Index jumped by 1.3% South Korea's Kospi surged by 1.5%. The major European markets have all moved to the upside on the day while the German DAX Index is up by 1.6%, the French CAC 40 Index is up by 1.0% and the U.K.'s FTSE 100 Index is up by 0.5%. In commodities trading, crude oil futures are edging up $0.16 to $75.30 a barrel after rising $0.30 to $75.14 a barrel on Wednesday. Meanwhile, after inching up $1.20 to $3,408.10 an ounce in the previous session, gold futures are tumbling $44.50 to $3,363.60 an ounce. On the currency front, the U.S. dollar is trading at 145.47 yen versus the 145.45 yen it fetched on Thursday. Against the euro, the dollar is valued at $1.1524 compared to yesterday's $1.1495.
