- Freight Rates Spike 13% Amid Disruptions, But Gains Unlikely to Hold.
- IMO Delays Net-Zero Framework, Fueling Investment Uncertainty.
- Containership Orders Surge Past 4 Million TEU in 2025.
The special port fees that the US and China have imposed on ships from each country kicked in on October 14, 2025. Surprisingly, the fallout hasn’t been as harsh as many anticipated. One key point is that Chinese authorities haven’t been too strict about enforcing the 25% US ownership rule, which means that, so far, only Matson has really felt the pinch from these fees, reports Linerlytica.
Freight Rate Volatility
Even though the port disruptions led to a 13% spike in SCFI freight rates last week, that increase hasn’t held up. The main reason is that there just aren’t enough cargo volumes to keep pushing freight rates higher. So, while these disruptions have caused some temporary shifts, the overall effect on global shipping has been pretty moderate.
IMO’s Delay of the Net-Zero Framework (NZF)
On October 17, 2025, IMO member states voted 57-49 to postpone the Marine Environment Protection Committee (MEPC) meeting for a year, which effectively delays the adoption of the Net-Zero Framework (NZF). This delay creates some uncertainty for investments in new containerships and could slow down progress toward decarbonization goals in the shipping industry. However, it won’t stop the ongoing trend of new ship orders.
New Container Ship Orders Continue to Surge
Despite the uncertainty surrounding the NZF, containership owners are still going strong with their investments in new vessels. In just the past two weeks, 240,000 TEU have been added to the orderbook, bringing the total new containership orders for 2025 to over 4 million TEU.
Adoption of Green Fuels in the Containership Sector
Containership owners and operators are at the forefront of adopting green fuels. Right now, 78% of the orderbook capacity (which is about 10.8 million TEU) is set up to run on LNG or methanol. The delay of the NZF is likely to give a boost to transitional fuels like LNG over methanol, with MSC poised to gain significantly since 94% of its current orderbook is LNG-powered.
Benefits for MSC Amidst NZF Delay
The delay in the NZF adoption also benefits carriers like MSC with older fleets. MSC’s average fleet age is 17 years, well above the peer average of 11 years, making it one of the key players to gain from the postponement of the NZF. Older fleets can continue to operate for longer with transitional fuels like LNG, putting MSC in a strong position as it adapts to the ongoing changes in the regulatory landscape.
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Source: Linerlytica
