Import/Export Industry Notifications

Key Market Developments

Trans-Pacific Market Adjustments

The trans-Pacific freight market is experiencing a significant cooling period as carriers added extra sailings on the U.S. West Coast in June to absorb booking surges, creating temporary overcapacity. Those supplemental voyages are now being withdrawn as forward bookings return to levels manageable by standard rotations.

According to Drewry's analysis, spot rates on the eastbound Transpacific trade fell sharply this week—down 20% to the USWC and 10% to the USEC—as capacity outpaced the slowing demand. This significant rate decline reflects the market's adjustment to reduced demand levels.

Cancelled Sailings Trend Improving

The container shipping industry is showing signs of stabilization with cancelled sailings on major East–West trade lanes are projected to fall 14% in June and 60% in July. Cancelled sailings have also declined notably, dropping 60% on the USEC (from 11 to 4) and 64% on the USWC (from 29 to 10) between June and July, reflecting stabilising schedules.

Middle East Airfreight Capacity Severely Impacted

The ongoing Israel-Iran conflict has dramatically affected air cargo capacity in the region. Airfreight capacity in the Middle East has significantly decreased following the onset of the Israel-Iran conflict, with widebody capacity—both belly and freighter—has dropped by 100% in Iran and Syria.

Global Port Disruptions

European Challenges

European ports face multiple operational challenges. According to World Cargo News, the pilot strikes held on 25 June delayed 50 vessels in Antwerp. Additionally, due to construction works, rail access to Hamburg Waltershof station will be completely closed from 4-8 July, which will significantly impact Hamburg's major terminals.

Asian Port Congestion

Asian ports continue to experience congestion issues. According to seaexplorer, the number of waiting vessels has increased this week to 150 in the Shanghai-Ningbo area. At Qingdao anchorage, 40 ships are waiting for a berth, up from 35 last week.

Trade Policy Developments

Recent trade policy changes continue to impact global freight flows. In early June, the Trump administration increased Section 232 tariffs on steel and aluminium imports to 50%, while the United Kingdom received a temporary exemption from the new tariffs, pending future negotiations linked to a proposed U.S.-UK Economic Prosperity Deal.

Market Outlook

Despite current challenges, there are positive indicators for the freight market. The National Retail Federation's Global Port Tracker anticipates stronger port activity through August, suggesting potential improvement in import volumes as retailers prepare for peak season demand.

The overall freight market appears to be in a transitional phase, with capacity adjustments ongoing and operational challenges requiring careful navigation by shippers and logistics providers.