Rate Related Update and Market Conditions
Market Conditions
TPEB (Trans-Pacific Eastbound)
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Demand remains sluggish in March, showing no significant improvement since the post-Lunar New Year period. With capacity nearly fully restored, floating rates continue to decline. The gap between fixed and floating rates is narrowing as available space remains abundant, prompting multiple carriers to scale back or remove Peak Season Surcharges.
FEWB (Far East Westbound)
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March capacity shifts have been minimal, with no major blank sailing announcements. While MSC has reduced vessel capacity on its primary FEWB service, new fleet deployments from HPL have offset some of the impact. Maersk has introduced a General Rate Increase for April, signaling potential rate hikes. However, its success will depend on demand levels in late March. Given the current market trajectory, a sustained rate increase may be difficult to achieve without a notable rise in shipment volumes.
TAWB (Trans-Atlantic Westbound)
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Capacity stability is improving as blank sailings decrease, particularly in South European services. Carrier utilization rates in North and South Europe remain strong, with some reaching full vessel occupancy. Rate adjustments remain mixed—while some carriers have applied mitigated PSS in March, others have postponed or reconsidered implementation for April. In the Mediterranean, planned PSS is emerging for West Mediterranean shipments.
Operational Updates
TPEB:
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Equipment availability remains strong across key origin hubs, with no shortages expected. Shippers can rely on a stable supply of containers to support ongoing bookings without significant disruptions.
FEWB:
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While there are no significant equipment shortages at origin points, logistical challenges are impacting transport flows. Destination inventory congestion continues to slow cargo movements, and potential export demand growth depends on how quickly inventory levels normalize. Port congestion at key arrival points has contributed to extended transit times.
TAWB:
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Equipment availability is tight in parts of Central Europe, particularly in Austria, Slovakia, Switzerland, Hungary, and Southern/Eastern Germany. Shippers are advised to use carrier haulage services to mitigate shortages. Meanwhile, ports in Southern Europe are not currently experiencing equipment issues, ensuring stable flows through those gateways.
Capacity Management
TPEB:
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Vessel capacity has rebounded to near full recovery, with available space exceeding pre-Lunar New Year levels. Carriers are maintaining full schedules, though overcapacity continues to exert downward pressure on rates.
FEWB:
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Capacity remains stable, with no recent blank sailing announcements for April. While MSC has reduced weekly capacity on its core FEWB route, new vessel additions from other carriers have offset much of the impact, keeping space availability steady. If demand remains weak, last-minute blank sailings could still emerge.
TAWB:
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Blank sailings have been reduced, leading to greater stability in available vessel space across both North and South Europe. Capacity utilization remains strong, particularly in North Europe, where some carriers are reporting near full-booking levels. However, the rate outlook remains uncertain, with some carriers reconsidering planned PSS adjustments.
Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com
Canada Implements Tariffs in Response to U.S. Steel and Aluminum Duties
Canada has introduced 25% tariffs on $20.8 billion USD worth of U.S. goods, matching the new U.S. duties on Canadian steel and aluminum. The tariffs, which take effect on March 14, apply not only to metal products but also to consumer goods such as computers and sporting equipment. Canadian officials state that they are continuing diplomatic discussions with the U.S. to seek a resolution while maintaining firm countermeasures.
U.S. Steel and Aluminum Tariffs Take Effect, Prompting EU Retaliation
The U.S. has imposed a 25% tariff on all steel and aluminum imports, a move that has prompted retaliatory tariffs from the European Union. The EU’s response, set to take effect in April, includes new duties on U.S. exports such as bourbon whiskey, boats, and motorcycles. This development follows Canada and the U.S. stepping back from additional trade measures, highlighting ongoing global trade uncertainties.
Tariff Uncertainty Affects U.S. Trucking Demand and Pricing
The U.S. trucking industry, already navigating a slow recovery, faces new challenges due to economic uncertainty and the impact of newly imposed tariffs. Market analysts predict that tariff-driven supply chain shifts could cause distortions in freight demand data, making long-term projections difficult. While some expect demand to increase in Q2, others warn that persistent tariff uncertainty may hinder rate recovery for both truckload and less-than-truckload (LTL) carriers.
Tariff Disruptions Lead to U.S. Retailers Downgrading Spring Import Forecasts
U.S. retailers have revised down their Q2 import forecasts as ongoing tariff disputes create supply chain challenges. The Global Port Tracker now projects April volumes at 2.18 million TEUs, reflecting a slower growth rate than previously expected. Many importers have frontloaded shipments to avoid additional duties, leading to elevated inventories that may suppress demand in the coming months. Analysts are monitoring whether these trends will stabilize later in the year.
