Source: Market average rates for 40‘ containers according to www.xeneta.com
Trade Analysis: Transpacific
Situation
The market has not yet recovered from the Lunar New Year holidays. Following the recent tariff implementation, shippers are taking a “wait and see” approach, trying to postpone non-urgent shipments until the tariff situation is clearer. Several customers are looking at options to move their shipments from other countries, particularly Vietnam, Thailand and Cambodia. Several port congestions in the US have caused some scheduling delays, but these are expected to be resolved soon.
Obstacles
The lack of clarity on tariffs and related actions by the US government creates an unstable environment. In addition, the outcome of proposed surcharges on Chinese-built ships calling at US ports remains to be seen. Such a move would result in higher costs for shippers and would also lead to adjustments in port call schedules and/or services. Smaller shipping lines will face greater challenges with these new fees due to their fleet structures and the number of ships built in China.
Outlook/Solutions
Shipping lines are looking to increase short-term rates in April as the final phase of new contract negotiations is approaching. We expect demand to increase towards the middle/end of April, as some cargoes may need to be shipped from Asia to the US.
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