The shipping company's latest forecast for the market in 2025 is related to freight rates!
Yangming Shipping held a press conference on the 24th and expressed cautious optimism about the market prospects in 2025. At the meeting, Yangming Shipping pointed out that the lunar year loading rate, booking conditions and freight rates were maintained at a high level.
At the same time, the circumnavigation of the Cape of Good Hope caused by the Red Sea crisis is expected to continue until the first half of 2025, which will help alleviate the current excess capacity problem. However, the potential strike factor in the US East continues to disrupt the supply chain and bring uncertainty to the market. The tariff base period in 2024 is higher than that in 2023, and the tariff rate in 2025 will be higher than that in 2024.
In terms of freight rate trends, Yangming Shipping said that demand after December was better than expected, mainly due to the early effect of the Lunar New Year and the risk of a possible second strike in the East of the United States on January 15, 2025. Yang Ming pointed out that the impact of tariff factors on freight rates is not obvious. In addition, in the fourth quarter, the near-ocean line performed hot, better than the same period in 2023. Despite the chaos of the shipping schedule in the market since 2024 and the blockage of some large ports in Asia, it is estimated that the price volume of the lunar New Year will remain high.
As the base period of the freight rate in 2024 is higher than that in 2023, Yangming Shipping analysis believes that this will be conducive to the signing of the 2025 contract price, which is expected to be higher than the 2024 contract price. However, the exact time will have to wait until March or April 2025.
In response to the potential strike issue at the US East Terminal, Yangming Marine pointed out that because the United States is having a Christmas holiday, it is expected that both labor and management will not be able to return to the negotiating table this week or early January 2025. With time running out before the January 15 expiration of the contract, it remains highly uncertain whether a consensus will be reached before and after Trump takes office. The shipping union of Yangming Shipping has drawn up countermeasures in response to the strike.
As for the impact of tariffs imposed by the United States, Yangming Shipping stressed that after several years of Sino-US trade war, many manufacturers have shifted to Southeast Asia, and the volume of Mexican goods continues to grow. The effect of tariffs continues to shift the volume of goods, known as triangular trade. It remains to be seen whether the future US tariffs will have new policies for Mexico or other transit countries, and the cargo sector may ship from East Asia and other places.
Yangming also said that the market conditions in the fourth quarter of this year were better than expected. Looking ahead to 2025, the maritime market supply is still greater than demand. Due to the geopolitical problems in the Middle East and the high uncertainty of the strike in the US East, the probability of ships circumnavigating the Cape of Good Hope in 2025 is still relatively high. Although the overall freight rate trend is more difficult to predict, it remains cautiously optimistic.
The management of Yangmyung Shipping further pointed out that the Red Sea crisis has become the biggest variable affecting the supply and demand of container ships in 2025. It is confirmed that the European line will continue to circle the Cape of Good Hope in the first season. If there are new changes in the market, customers will be informed in advance.
Yangming also said that the fourth quarter of this year is better than expected, the original fourth quarter is the peak season of the annual holiday, the market shipping chaos this year, the Asian line is facing port congestion, affecting the supply of shipping space and stability, the price and volume of near-ocean routes are Qi Yang, significantly better than the original expectations; The volume of cargo on the ocean-going routes was little different from the same period last year, however, the freight rate was higher and the performance was better than expected. Overall, Yangming Marine is satisfied with its performance in the fourth quarter of this year and cautiously optimistic about market conditions in 2025.
At the same time, the circumnavigation of the Cape of Good Hope caused by the Red Sea crisis is expected to continue until the first half of 2025, which will help alleviate the current excess capacity problem. However, the potential strike factor in the US East continues to disrupt the supply chain and bring uncertainty to the market. The tariff base period in 2024 is higher than that in 2023, and the tariff rate in 2025 will be higher than that in 2024.
In terms of freight rate trends, Yangming Shipping said that demand after December was better than expected, mainly due to the early effect of the Lunar New Year and the risk of a possible second strike in the East of the United States on January 15, 2025. Yang Ming pointed out that the impact of tariff factors on freight rates is not obvious. In addition, in the fourth quarter, the near-ocean line performed hot, better than the same period in 2023. Despite the chaos of the shipping schedule in the market since 2024 and the blockage of some large ports in Asia, it is estimated that the price volume of the lunar New Year will remain high.
As the base period of the freight rate in 2024 is higher than that in 2023, Yangming Shipping analysis believes that this will be conducive to the signing of the 2025 contract price, which is expected to be higher than the 2024 contract price. However, the exact time will have to wait until March or April 2025.
In response to the potential strike issue at the US East Terminal, Yangming Marine pointed out that because the United States is having a Christmas holiday, it is expected that both labor and management will not be able to return to the negotiating table this week or early January 2025. With time running out before the January 15 expiration of the contract, it remains highly uncertain whether a consensus will be reached before and after Trump takes office. The shipping union of Yangming Shipping has drawn up countermeasures in response to the strike.
As for the impact of tariffs imposed by the United States, Yangming Shipping stressed that after several years of Sino-US trade war, many manufacturers have shifted to Southeast Asia, and the volume of Mexican goods continues to grow. The effect of tariffs continues to shift the volume of goods, known as triangular trade. It remains to be seen whether the future US tariffs will have new policies for Mexico or other transit countries, and the cargo sector may ship from East Asia and other places.
Yangming also said that the market conditions in the fourth quarter of this year were better than expected. Looking ahead to 2025, the maritime market supply is still greater than demand. Due to the geopolitical problems in the Middle East and the high uncertainty of the strike in the US East, the probability of ships circumnavigating the Cape of Good Hope in 2025 is still relatively high. Although the overall freight rate trend is more difficult to predict, it remains cautiously optimistic.
The management of Yangmyung Shipping further pointed out that the Red Sea crisis has become the biggest variable affecting the supply and demand of container ships in 2025. It is confirmed that the European line will continue to circle the Cape of Good Hope in the first season. If there are new changes in the market, customers will be informed in advance.
Yangming also said that the fourth quarter of this year is better than expected, the original fourth quarter is the peak season of the annual holiday, the market shipping chaos this year, the Asian line is facing port congestion, affecting the supply of shipping space and stability, the price and volume of near-ocean routes are Qi Yang, significantly better than the original expectations; The volume of cargo on the ocean-going routes was little different from the same period last year, however, the freight rate was higher and the performance was better than expected. Overall, Yangming Marine is satisfied with its performance in the fourth quarter of this year and cautiously optimistic about market conditions in 2025.
