Market Conditions

TPEB (Trans-Pacific Eastbound)

• Rates: Post-Lunar New Year demand remains weak, with floating rates expected to decline further. A slow recovery is projected by Weeks 9 and 10.

FEWB (Far East Westbound)

• Rates: Demand remains soft post-Lunar New Year, with further declines in floating rates expected.

TAWB (Trans-Atlantic Westbound)

• Rates: Demand has remained stable throughout February. Some carriers are introducing a Peak Season Surcharge from March 1st for shipments from North Europe to the U.S., Canada, and Mexico.

Operational Updates

TPEB:

• No reported equipment shortages at origin. Carriers are maintaining good vessel utilization in February due to pre-holiday shipments.

FEWB:

• Occasional equipment shortages persist at origin due to blank sailings and vessel delays.

TAWB:

• Recent carrier alliance changes and vessel redeployments caused temporary service disruptions but are now fully implemented. These structural adjustments are expected to improve schedule reliability and service efficiency.

Capacity Management

TPEB:

• Blank sailings planned before the holiday are now limiting market capacity. Despite weak demand, carriers are expected to accept over-bookings in preparation for March, anticipating further rate declines.

FEWB:

• Blank sailings from pre-LNY schedules are now tightening space availability. Carriers report strong vessel utilization in February despite weaker overall demand. Over-bookings are expected as carriers prepare for rate adjustments in March.

TAWB:

• Blank sailings have decreased across both North and South Europe, leading to more stable capacity levels. Carriers are maintaining healthy space availability.

China Announces Tariffs Following U.S. Trade Measures

Following the 10% tariffs on all Chinese imports imposed by the U.S., China has introduced targeted tariffs on U.S. goods, including 15% on coal and LNG and 10% on crude oil, farm equipment, and large-engine sedans. Additionally, China has launched an anti-monopoly investigation into Google and placed two U.S. companies on its list for potential sanctions. These developments come ahead of scheduled discussions between U.S. and Chinese leadership, with potential implications for trade negotiations.

Canada Evaluates Pipeline Expansion Amid U.S. Tariff Uncertainty

With new U.S. tariff measures impacting Canadian exports, Canada is reconsidering efforts to expand its oil pipeline network beyond U.S. markets. The $24 billion Trans Mountain expansion, completed in 2024, has already boosted crude exports to Asia, and discussions are resurfacing around reviving the Energy East and Northern Gateway pipeline projects. These initiatives aim to reduce reliance on the U.S. market and strengthen Canada’s position in global energy trade.