Market Conditions

TPEB (Trans-Pacific Eastbound)

• Demand is gradually increasing but remains below pre-Lunar New Year levels. With ample vessel space available, rates continue their downward trend as carriers maintain competitive pricing. Some have opted to extend existing rates through the end of March, while Peak Season Surcharges have been adjusted downward due to the current market softness. There is also a noticeable shift in cargo movement, with volumes beginning to transition from China to Southeast Asia.

FEWB (Far East Westbound)

• Market demand has largely recovered from the post-LNY slowdown, but ongoing inventory buildup in Europe is limiting the need for new orders. Retail purchasing has softened compared to last year, contributing to reduced shipping volumes. As a result, general rate increases initially planned for March have been withdrawn. However, carriers may attempt to push rates higher later in March or early April to stabilize vessel utilization, especially if there are further capacity adjustments influenced by the evolving U.S. Trade Representative policies affecting Chinese maritime operations.

TAWB (Trans-Atlantic Westbound)

• Carrier utilization remains strong, particularly on North Europe routes, where some sailings have reached full capacity for March. South European demand is more moderate, with blank sailings continuing to impact East Mediterranean services. Pricing remains stable, with most carriers delaying PSS implementation until April. However, select carriers have opted to proceed with surcharges for shipments to the U.S. East Coast and Gulf. In the Mediterranean, planned April PSS adjustments align with North European carriers’ strategies, reflecting caution regarding near-term market shifts.

Operational Updates

TPEB:

• Equipment supply remains stable across major origin gateways, with no significant shortages anticipated in the near term. Shippers can expect smooth equipment availability, reducing logistical bottlenecks at key export hubs.

FEWB:

• Equipment shortages are not a pressing issue across most departure points. However, ongoing shifts in carrier capacity allocation between TPEB and FEWB, driven by potential regulatory changes in the U.S., may introduce future logistical adjustments. For now, operational disruptions remain minimal.

TAWB:

• Certain regions in Central Europe continue to experience equipment shortages, particularly in Austria, Slovakia, Switzerland, Hungary, and parts of Germany. To mitigate delays, carrier haulage is recommended for these locations. In contrast, Southern European ports currently report stable equipment availability, ensuring steady cargo movement.

Capacity Management

TPEB:

• Vessel space has rebounded to over 90% capacity following the holiday slowdown. While demand is improving, ample space remains available, allowing for greater booking flexibility compared to pre-LNY conditions.

FEWB:

• Despite early March blank sailings, capacity remains stable, with demand yet to show significant increases. Carriers continue to seek cargo commitments to support their rate positioning efforts, but no substantial space constraints have been reported.

TAWB:

• Blank sailings are declining, contributing to more stable capacity levels. Overbooking concerns have eased, and most carriers are reporting balanced utilization rates, signaling a shift away from the volatility seen in recent weeks.

Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com

Trump Delays Tariffs on Imports from Canada and Mexico for One Month

The U.S. government has temporarily postponed 25% tariffs on imports from Canada and Mexico until April 2, allowing businesses to continue operating under the U.S.-Mexico-Canada Agreement (USMCA) without additional costs. The tariff exemption was initially announced for Mexico but later extended to include Canada. The White House has not yet clarified whether the exemption applies to both finished vehicles and auto parts. Meanwhile, a 10% tariff on Canadian electricity and oil remains in place. Further tariff decisions are expected in April.

Trans-Pacific Carriers Seek Higher Contract Rates for 2025–2026

Container carriers in the trans-Pacific trade are negotiating higher contract rates for the 2025–2026 shipping season, with proposed increases of 20% to 30% over current levels. Freight forwarders report that carriers are targeting $2,000 per FEU for West Coast shipments and $3,000 per FEU for East Coast shipments. The negotiations come amid evolving market conditions, with industry experts suggesting that these rate levels are achievable depending on demand fluctuations and broader economic factors influencing global shipping.