Increased uncertainty in the global container shipping market
The latest data shows that the global container shipping market is experiencing multiple uncertainty shocks - freight rate volatility has increased, and many shipping companies have adjusted their capacity layout to meet complex challenges. Industry experts warn that geopolitical and trade policy uncertainty may continue to disrupt the market.
Antonella Teodoro, an analyst at MDS Transmodal, pointed out that the recently announced or implemented tariffs by the United States and retaliatory measures by its trading partners, combined with alliance restructuring by major shipping companies amid geopolitical turmoil, make it "difficult to disentrenchment of cause and effect" in the market changes.
Alvin Fuh, vice president of Taiwanese freight forwarding giant Dimerco Express Group, said that as the April contract renewal season for trans-Pacific eastbound routes approaches, shipping companies are actively pushing for a general increase in freight rates, and market volatility may further expand. However, the adjustment of the Trump administration's tariff policy has led to a wait-and-see attitude among some customers and a significant reduction in cargo volume. Dimerco data shows that supply and demand on U.S. West Coast routes have become more balanced due to new alliance formation and shrinking cargo volumes.
Although shipping lines have tried to prop up spot rates through capacity controls during the key contract season, the decline in Pacific routes has not stopped. According to MDS Transmodal, the number of services on the route held steady at 77 from December to January, but plunged to 74 in March, a net loss of 2.8 per cent. "Is this a signal of weak demand or a strategic retrenchment by shipping companies?" Teodoro asked.
According to the World Container Index published by shipping consultancy Drewry, global spot freight rates fell 4 percent to $2,264 /FEU at last count. Among them, spot freight rates from Asia to the West and east coasts of the United States fell 9% and 7% week on week, respectively, while Northern Europe and the Mediterranean route freight rates also fell slightly by 2% and 1%.
Antonella Teodoro, an analyst at MDS Transmodal, pointed out that the recently announced or implemented tariffs by the United States and retaliatory measures by its trading partners, combined with alliance restructuring by major shipping companies amid geopolitical turmoil, make it "difficult to disentrenchment of cause and effect" in the market changes.
Alvin Fuh, vice president of Taiwanese freight forwarding giant Dimerco Express Group, said that as the April contract renewal season for trans-Pacific eastbound routes approaches, shipping companies are actively pushing for a general increase in freight rates, and market volatility may further expand. However, the adjustment of the Trump administration's tariff policy has led to a wait-and-see attitude among some customers and a significant reduction in cargo volume. Dimerco data shows that supply and demand on U.S. West Coast routes have become more balanced due to new alliance formation and shrinking cargo volumes.
Although shipping lines have tried to prop up spot rates through capacity controls during the key contract season, the decline in Pacific routes has not stopped. According to MDS Transmodal, the number of services on the route held steady at 77 from December to January, but plunged to 74 in March, a net loss of 2.8 per cent. "Is this a signal of weak demand or a strategic retrenchment by shipping companies?" Teodoro asked.
Antonella Teodoro, an analyst at MDS Transmodal, pointed out that the recently announced or implemented tariffs by the United States and retaliatory measures by its trading partners, combined with alliance restructuring by major shipping companies amid geopolitical turmoil, make it "difficult to disentrenchment of cause and effect" in the market changes.
Alvin Fuh, vice president of Taiwanese freight forwarding giant Dimerco Express Group, said that as the April contract renewal season for trans-Pacific eastbound routes approaches, shipping companies are actively pushing for a general increase in freight rates, and market volatility may further expand. However, the adjustment of the Trump administration's tariff policy has led to a wait-and-see attitude among some customers and a significant reduction in cargo volume. Dimerco data shows that supply and demand on U.S. West Coast routes have become more balanced due to new alliance formation and shrinking cargo volumes.
Although shipping lines have tried to prop up spot rates through capacity controls during the key contract season, the decline in Pacific routes has not stopped. According to MDS Transmodal, the number of services on the route held steady at 77 from December to January, but plunged to 74 in March, a net loss of 2.8 per cent. "Is this a signal of weak demand or a strategic retrenchment by shipping companies?" Teodoro asked.
According to the World Container Index published by shipping consultancy Drewry, global spot freight rates fell 4 percent to $2,264 /FEU at last count. Among them, spot freight rates from Asia to the West and east coasts of the United States fell 9% and 7% week on week, respectively, while Northern Europe and the Mediterranean route freight rates also fell slightly by 2% and 1%.
Antonella Teodoro, an analyst at MDS Transmodal, pointed out that the recently announced or implemented tariffs by the United States and retaliatory measures by its trading partners, combined with alliance restructuring by major shipping companies amid geopolitical turmoil, make it "difficult to disentrenchment of cause and effect" in the market changes.
Alvin Fuh, vice president of Taiwanese freight forwarding giant Dimerco Express Group, said that as the April contract renewal season for trans-Pacific eastbound routes approaches, shipping companies are actively pushing for a general increase in freight rates, and market volatility may further expand. However, the adjustment of the Trump administration's tariff policy has led to a wait-and-see attitude among some customers and a significant reduction in cargo volume. Dimerco data shows that supply and demand on U.S. West Coast routes have become more balanced due to new alliance formation and shrinking cargo volumes.
Although shipping lines have tried to prop up spot rates through capacity controls during the key contract season, the decline in Pacific routes has not stopped. According to MDS Transmodal, the number of services on the route held steady at 77 from December to January, but plunged to 74 in March, a net loss of 2.8 per cent. "Is this a signal of weak demand or a strategic retrenchment by shipping companies?" Teodoro asked.
