Rate Related Update and Market Conditions
Leading shipping companies have announced: Starting January 1, 2025, a Panama Canal surcharge will be imposed!
Starting January 1, 2025, the Panama Canal Authority (ACP) will introduce new fees and adjustments to its booking system to optimize operations. In response, shipping lines like MSC and CMA CGM will impose a $40/TEU Panama Canal Surcharge on certain routes. ACP will also implement penalties for late arrivals and last-minute bookings while enhancing flexibility with free slot exchanges up to 14 days before arrival.
Maersk: Be Prepared for “Strong Demand” and “Market Turbulence” in 2025
Maersk expects strong demand and market turbulence to continue into 2025, driven by resilient e-commerce growth, early freight bookings, and potential disruptions like ILA strikes and “Trump Tariffs 2.0.” The company plans to shift China airfreight routes to its South Carolina hub and improve schedule reliability to 90% under its new “Gemini” partnership with Hapag-Lloyd, preparing for another year of robust market activity.
Increased to 50%! The U.S. Tariff Stick Targets China Again!
The U.S. announced higher tariffs on Chinese solar polysilicon, silicon wafers (50%), and tungsten products (25%), effective January 1, 2025, to protect its clean energy industry. China strongly opposes the move, calling it a violation of WTO rules that will harm global trade, raise U.S. inflation, and disrupt supply chains. China vows to take action to defend its interests.
Price Surge! Multiple Shipping Companies Significantly Adjust Rates! U.S. Route Freight Rates Skyrocket…
Driven by pre-holiday shipments and East Coast port strike risks, major carriers like MSC, COSCO, and Yang Ming announced significant U.S. rate hikes starting January 1, with increases up to $2,000 per container. HMM will add peak season surcharges, and MSC/CMA will impose Panama Canal fees. While U.S. rates surged, Europe rates remain stable amid alliance restructuring and growing market competition. Future rates depend on supply-demand and strike outcomes.
Port Congestion
U.S.-Asia Container Trade Hits Record, Significant Growth in Exports from China!
In November, U.S. container imports from 10 major Asian economies reached 1.72 million TEUs, up 15.3% year-on-year but down 6.6% from October. Total imports for the first 11 months of 2023 grew 16.4%, nearing 2021’s record. Key exporters included China (+15.8%) and Vietnam (+20.5%). U.S. exports to Asia in October fell slightly, with China seeing a 22.1% drop.
Potential East Coast Port Strikes on January 15
The January 15 East Coast port strike remains uncertain as tensions rise between the ILA and USMX. Trump’s support for the ILA and opposition to automation pressures shipping companies to concede, though some may allow a strike to gain leverage. Key issues include high U.S. port costs, automation, and a 61.5% wage increase. Trump’s involvement adds unpredictability, leaving the outcome unclear.
APM Terminals Adds Capacity and Technology at Tangier Facility
The U.S. House has passed a bill under the NDAA potentially banning various Chinese imports, including lidar and garlic, due to security and safety concerns. It restricts Pentagon use of Chinese lidar and contracts with Chinese tutoring and semiconductor firms linked to Huawei. China’s Hesai Technology is suing the U.S. Defense Department, and China warns of countermeasures, urging cooperative relations.
Truckload Rejection Rates Increase as Capacity Tightens
Rejection rates for truckload freight in the U.S. have climbed significantly, doubling from May 2023 levels despite steady load volumes. This trend reflects a reduction in available trucking capacity as carriers exit the market. Data highlights a historic rate of over 350 carrier exits per week over the past two years. While seasonality plays a role, the sustained rise in rejections suggests a challenging market, signaling longer-term capacity constraints beyond typical holiday pressures.
