Latest news with #WorldContainerIndex
Fibre2Fashion
29-05-2025
- Business
- Fibre2Fashion
Europe's ports face delays amid labour shortages, strikes
Port congestion is intensifying across major global trade routes, with Northern Europe's key hubs—including Antwerp, Rotterdam, Hamburg, and Bremerhaven—facing escalating backlogs and severe inland transport disruptions, according to Drewry. Bremerhaven has been particularly affected due to labour shortages during the recent holiday period, while low water levels on the Rhine have curtailed barge capacity out of Antwerp and Rotterdam, compounding logistical strain. Port congestion is worsening across key hubs in Northern Europe and major global ports like Shenzhen, Los Angeles, and New York, driven by labour shortages, strikes, and inland transport issues. Berth waiting times and logistics costs are rising sharply. Carriers are imposing surcharges, while spot rates surge amid an early peak season influenced by USâ€'China tariff uncertainty. At the Port of Antwerp-Bruges, operations were further strained by a nationwide strike on May 20, which temporarily disrupted vessel traffic. Kallo and Boudewijn Locks were affected, with Boudewijn Lock later restored to full operation by the evening. Although the impact was short-lived, it added pressure to already congested conditions across the region, maritime research and consulting firm Drewry said in its Logistics Executive Briefing. Berth waiting times reflect the severity of the congestion. At Antwerp, average waiting time rose from 32 hours in Week 13 to 44 hours in Week 20—a 37 per cent increase. Hamburg witnessed a 49 per cent jump from 34 to 50 hours, while Bremerhaven saw a 77 per cent surge over the same period. These port delays are having a cascading effect across the supply chain. Supply chain reliability is falling, logistics costs are climbing, and inland transport is becoming increasingly complex. The congestion is not confined to Europe alone. Similar trends have emerged in Shenzhen, Los Angeles, and New York, where the number of containerships waiting to berth has steadily increased since Week 17. At peak levels, up to 50 ships were waiting in Shenzhen, 42 in Los Angeles, and 14 in New York. Extended port delays are stretching transit times, disrupting inventory planning, and forcing shippers to carry surplus stock. Carriers are responding with rerouting strategies and congestion surcharges. Mediterranean Shipping Company (MSC), for example, is set to implement a congestion surcharge from June 1 on all shipments from Northern Europe to the Far East, further elevating freight costs, added the report. The strain is compounded by a potential early peak season in Transpacific eastbound trade, driven by a temporary 90-day pause in US—China tariffs, which expires on August 14. As a result, container spot rates have surged 27 per cent since early May. Rates from Shanghai to Los Angeles climbed from $2,590 on May 1 to $3,197 by May 22, 2025, according to Drewry's World Container Index (WCI). Similarly, rates to New York rose from $3,500 to $4,527 in the same period. General Rate Increases (GRIs) were successfully implemented on May 15, 2025, with additional GRIs and Peak Season Surcharges (PSSs) scheduled for June 1, 2025. The worsening congestion underscores the vulnerability of container shipping to disruption and reinforces the urgent need for resilient, adaptive supply chain strategies. In such a volatile landscape, access to real-time market insights—covering key indicators such as port congestion, blank sailings, and capacity—is critical for cargo owners seeking to make informed decisions, mitigate risks, and navigate continued uncertainty effectively, said Drewry. Fibre2Fashion News Desk (SG)
Yahoo
21-05-2025
- Business
- Yahoo
Shipping Rates Rise as Exports From China Surge
Ocean freight bookings from China to the U.S. are surging after the two countries agreed to scale back tariffs for 90 days. After ratcheting tariffs on China's goods to 145%, Trump issued a 90-day pause that reduced the tariff rate to 30%. As volumes increase, so do shipping rates, which could pressure consumer a trade deal with China cooled tensions with the U.S., importers are now preparing for a surge in cargo that could lead to higher shipping rates and consumer costs. Shipping executives report a surge in shipping volumes that will likely lead to higher rates. That comes after President Donald Trump put a 90-day pause on steep tariffs on China, reducing import taxes to 30% from 145%. 'Ocean freight bookings from China to the U.S. are up 275% this week over last week. There won't be enough ships for all this cargo. Get ready for surge pricing,' said Ryan Petersen, CEO of shipping firm Flexport, in a post on X. Shipping rates are already rising. The World Container Index from supply chain firm Drewry showed that rates for the week ending May 15 were up 8% from the prior week. The report also showed that rates for freight shipping from Shanghai to New York jumped by 19% and rates from Shanghai to Los Angeles increased by 16%. 'There's a lot of uncertainty. When there's uncertainty in shipping, that means higher costs. Higher costs get pushed onto you, the consumer,' said Sal Mercoglian, a maritime history professor at Campbell University who specializes in shipping issues. The increase is a rebound for volumes that dipped at the beginning of the month as the 145% tariff on Chinese goods slowed demand. 'Volume in the first week of May here at the Port of LA was down more than 30% on the import side of our ledger,' said Gene Seroka, executive director of the Port of Los Angeles. 'What probably comes out of this are lower inventory levels across the board, less selection for American consumers, and maybe higher prices.' Read the original article on Investopedia 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
The Star
22-04-2025
- Business
- The Star
Port sector likely to face challenges
Maybank IB said container volumes may retreat once the tariff grace period lapses, as the frontloading wave passes. PETALING JAYA: The United States' steep tariffs on Chinese goods have led to a sharp 30% to 60% drop in China–US container bookings since tariffs took effect, while bookings from other parts of Asia have also declined by 10% to 20%, reflecting broader demand weakness. This has led the World Trade Organisation (WTO) to downgrade its 2025 global trade growth forecast to 0.2% from its previous estimate of 2.7%, citing escalating US-China trade tensions. The WTO warned that merchandise trade between the United States and China could decline by as much as 80%, potentially triggering a significant reshaping of global trade flows. In a worst-case scenario, where the most severe tariffs are reinstated after the current 90-day pause, global trade could contract by as much as 1.5%. As it is, there has been a sharp rise in blank sailings (cancelled or skipped sailings by shipping lines, often used to manage overcapacity or respond to weak demand) since the US tariffs on China took effect, particularly for the China–US routes. In contrast, South-East Asia's ocean freight rates have remained relatively resilient, supported by temporary demand stemming from the 90-day tariff reprieve announced April 8. 'Some exporters have reportedly ramped up production to frontload shipments to the United States ahead of the tariff implementation. 'However, in our view, this surge has not been sufficient to offset the steep decline in Chinese containerised exports, evidenced by last week's 3% week-on-week decline in the World Container Index. 'That said, it could still provide temporary support to local port throughput, particularly from intra-Asia trade volumes and gateway volumes,' Maybank Investment Bank Research (Maybank IB) said. It added that container volumes may retreat once the tariff grace period lapses, as the frontloading wave passes. The research house believed that without clearer policy signals or further trade relief, order volumes could decline sharply. 'While near-term may offer a fleeting volume uplift, persistent uncertainty and elevated costs are shaping a more challenging outlook for the sector.' The research house believed that container freight rates could remain on an upward trend in the second quarter, albeit softer year-on-year, driven by ex-China frontloading activities that have brought forward the traditional peak shipping season, which typically starts in May. However, it is expected that downside risks will persist into the second half of 2025, including demand softening due to frontloading exhaustion and a potential slowdown in US-China trade flows, both of which could weigh on container freight rates. The research house said a key wildcard remains the Red Sea disruption, whereby reopening of the Suez Canal could free up more vessel capacity, adding pressure on freight rates. Maybank IB has downgraded the sector to 'neutral' from 'positive', as the deteriorating global trade outlook would likely weigh on the performances of the companies under our coverage, though partially cushioned by domestic consumption demand. It has 'hold' ratings on Westports Holdings Bhd and Swift Haulage Bhd . 'Malaysian-listed logistics players like Swift Haulage, Tasco Bhd and FM Global Logistics Holdings Bhd have minimal exposure to the US market. 'While our channel checks suggest that companies have received increased enquiries from foreign exporters due to trade diversion, upside on volume is limited by challenges including erratic order flows, poor shipment visibility and infrastructure strain,' the research house said. It added port delays have been building up at key local ports like Westports and Port of Tanjung Pelepas (PTP), further strained by alliance reshuffling in February for PTP.
Japan Times
03-03-2025
- Business
- Japan Times
U.S. tariffs, easing of Middle East tensions threaten reversal of shipping boom
Global shippers from AP Moller-Maersk to Cosco Shipping Holdings, which logged windfall earnings last year, may see a reversal of fortunes in 2025 as a potential reopening of the Red Sea route and punitive U.S. tariffs loom. Plans by U.S. President Donald Trump to introduce new import levies are damaging trade, while the prospect of a lasting ceasefire in the Middle East could redirect traffic back through the Suez Canal, driving rates lower. Global liner rates fell 5.9% sequentially in the week ended Feb. 27, after earlier breaking below $3,000 per 12-meter container for the first time since early May, according to World Container Index data. The Shanghai Containerized Freight Index has lost 57% from its peak in July.
