- US-China Deal Boosts Market Confidence as Rate Increases Hold.
- Tariff Relief May Undermine Carriers’ Rate Gains in Slack Season.
- IMO Net-Zero Framework Delay Exposes Deep Global Divide.
Container carriers are moving ahead with their planned rate hikes on November 1, having successfully held onto their mid-October gains. This momentum is fueled by a growing sense of optimism in the market that a US-China trade deal might be wrapped up this week. The proposed agreement is anticipated to address US-China port fees, with leaders from both countries scheduled to meet on October 30. So far, port traffic between the two nations has remained mostly stable, although COSCO’s vessels in the US and Matson’s vessels in China have faced some minor disruptions, reports Liner Lytica.
Tariff Removal Could Pressure Rate Increases
While lifting punitive tariffs on Chinese container imports and reducing uncertainty around port tariffs could ease trade flows, it might also challenge carriers’ attempts to keep rates elevated. As we enter the traditional slow season in November, carriers are still hesitant to cut back on excess capacity, making it tough to maintain higher freight rates.
IMO’s Net-Zero Framework Delay Highlights Global Division
The IMO’s decision on October 17, 2025, to postpone the Net-Zero Framework (NZF) has exposed significant rifts among member states. The EU and smaller island nations are pushing hard for decarbonization, while the US and most Asian countries are against implementing carbon pricing in shipping. Those voting for the delay included the US, China, and Russia, along with several major oil-exporting nations. Singapore was the only Asian country to oppose the adjournment, while Japan and South Korea chose to abstain.
Newbuilding Momentum Continues Despite Regulatory Uncertainty
Even with the policy setback at the IMO, carriers are still keen to invest in new containerships. In the past two weeks, new vessel orders have been placed, and more are on the horizon as shipowners continue to push forward with their fleet expansion plans.
The global containership orderbook ratio has now surpassed 33%, marking its highest level since 2009, signalling sustained industry confidence in long-term demand despite short-term regulatory and rate volatility.
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Source: Liner Lytica
