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Rate Related Update and Market Conditions

Market Conditions

TPEB (Trans-Pacific Eastbound):

  • Rates: Shipping lines have reduced short-term rates to both U.S. coasts to boost bookings ahead of Lunar New Year. FAK (Freight All Kinds) rates remain higher than NAC (Named Account Contract) rates, and peak season surcharges (PSSs) continue to apply. Further PSS adjustments are anticipated by mid-February.

FEWB (Far East Westbound):

  • Demand: Demand has softened, with vessel utilization rates dropping due to reduced pre-CNY shipping activity. The market shows signs of cooling ahead of the holiday period.

TAWB (Trans-Atlantic Westbound):

  • Labor Disputes: The tentative agreement between the ILA (International Longshoremen’s Association) and USMX (United States Maritime Alliance) has prevented the planned strike. As a result, previously announced disruption surcharges have been canceled.
  • Rates: Rates have been extended for the remainder of January, with further extensions expected into February, aligning with the implementation of new service networks.

Operational Updates

TPEB Equipment:

  • No significant equipment issues have been reported at origin locations, and equipment availability remains stable.

FEWB Equipment:

  • With the market softening, carriers are actively promoting space for post-CNY shipments, signaling ample availability.

Capacity Management

TPEB:

  • Space constraints continue as pre-CNY rush shipments increase demand. Carriers are adjusting networks and blank sailings to align capacity with current booking levels.

FEWB:

  • Carriers are reducing sailings ahead of the holiday to match weaker demand, with capacity falling below typical levels. Adjustments to alliance services are anticipated after CNY.

TAWB:

  • Blank sailings are part of broader service restructuring as carriers roll out new network adjustments.

Tariffs Implementation May Come Sooner Than Expected

President-elect Trump’s tariff plans, including up to 60% on Chinese goods and 100% on others, may be implemented quickly using the IEEPA. Businesses are urged to prepare for supply chain disruptions by reviewing product origins and exploring alternatives. While tariffs may increase costs and provoke retaliation, experts warn that Trump’s protectionist agenda is imminent and unavoidable.

  

East Coast Port Disputes Temporarily Resolved: What Challenges Will Freight Face in 2025

Global freight in 2025 will face challenges such as strike risks, rising tariffs, geopolitical tensions, and shifting shipping alliances. The Trump administration’s tariff policies and new shipping alliances may disrupt supply chains and increase costs. Companies must enhance supply chain flexibility through contingency planning, regional warehouses, and diversified routes to navigate uncertainty and maintain operational stability in a rapidly changing environment.

ZIM Announces Its Membership in This Alliance

ZIM has joined the “Move to -15” alliance to cut emissions in the cold chain by raising frozen goods’ standard temperature to -15°C, potentially reducing 17.7 million tons of annual emissions. Leveraging its advanced refrigerated fleet, ZIM aims to enhance sustainability. The alliance, launched by DP World at COP28, has support from major global logistics leaders like Maersk and COSCO.

Ceasefire Agreement Reached in Gaza. Will Red Sea Shipping Resume Normal Operations? What Changes for Shipping Costs?

Israel and Hamas have agreed to a ceasefire starting January 19, aiming for lasting peace through phased actions, including prisoner exchanges and Gaza reconstruction. The deal may impact Red Sea shipping disruptions caused by Houthi attacks. Industry experts hope for progress in the ceasefire’s implementation to stabilize shipping routes and costs.