- Carriers Vow Not to Pass New Costs to Shippers.
- Tariffs Add Hundreds per TEU to Operational Expenses.
- European Labour Unrest and Capacity Cuts Pressure Supply Chains.
Fresh port fees introduced by the United States on Chinese vessels, along with China’s retaliatory actions against US-linked ships, are now officially in effect. These new fees are adding several hundred dollars per TEU to operational costs, making trade between the two nations more complicated. However, carriers have indicated that they won’t be passing these costs onto shippers using US ports, reports Drewry.
Limited Operational Impact
To lessen the impact of the new tariffs, carriers are adjusting their service networks and minimizing exposure on the affected routes. Industry experts believe that the overall operational impact will remain limited as the market adapts to these changing trade conditions.
Labour Unrest and Capacity Cuts in Europe
In Europe, labor disruptions and capacity management strategies, like blanked sailings and suspended services, continue to strain supply chains. Between weeks 43 (20–26 October) and 47 (17–23 November), carriers have pulled 7% of their scheduled sailings, 51 out of 714, on key East–West routes. Almost half of these cancellations are on the Transpacific eastbound trade, with 33% affecting Asia–Europe/Med routes and 18% on Transatlantic westbound routes.
Capacity Adjustments and Rate Movements
According to Drewry, carriers announced 90 blanked sailings in October, a jump from 58 in September, leading to a 6% month-on-month capacity reduction on major East–West routes. November is expected to see a 9% rebound in capacity, with cancellations easing to 52. Freight rates have shown a slight recovery, as Drewry’s World Container Index increased by 2% week-on-week to $1,687 per 40ft on 16 October, ending a 16-week decline.
Shippers Urged to Stay Flexible
With ongoing uncertainty, shippers are encouraged to secure vessel space early, look into alternative routing options, and keep a close eye on schedule updates. Staying flexible and maintaining close communication with logistics providers will be crucial for navigating the upcoming months.
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Source: Drewry
