Market Overview

The global ocean container market remains dynamic, with strong demand, ample supply capacity, and declining rates across global indices. While some port congestion persists—particularly at U.S. West Coast rail intermodal yards in Los Angeles/Long Beach, where delays exceed one week—overall supply chain conditions are improving.

However, ongoing tariff volatility remains a challenge. The U.S. administration continues to introduce new tariffs on key trading partners while threatening additional duties on others, adding uncertainty to the global trade environment.

Key Issues Impacting Global Shipping

Geopolitical & Market Disruptions

• Red Sea Reopening: A reopening is anticipated, but new threats of hostilities persist.
• South China Sea Tensions: Reports of Chinese PLA intrusions against Philippine and Vietnamese vessels and aircraft raise security concerns.
• Carrier Alliances Reforming: Major ocean alliances are realigning services and forming new partnerships, with most changes expected to be finalized by mid-April. Gemini Cooperation’s transition to a hub-and-spoke model may take longer.
• Hutchison Ports Sale: Hutchison Ports has sold all terminal operations to TIL (MSC) & BlackRock. The deal awaits approval from the Chinese government, which may intervene.
• CMA CGM Expansion: CMA CGM announced a significant expansion of its U.S.-flagged vessel fleet and investments in U.S. terminal operations.
• Carrier Alliance Changes & Blank Sailings: Service reliability remains a concern as carriers adjust routes and use blank sailings to manage excess capacity and stabilize rates.

Rates & Service Analysis

Generally, global rates continue to soften in short term, spot rates, and long term contract rates. Long term rates continue to be below the short-term rate levels.

North Europe & Mediterranean

• Supply & Demand: Demand remains flat/soft, while supply is strong. If the Red Sea reopens, excess capacitywill flood the market, leading to more blank sailings.
• Rates: Spot rates have dropped 40-50% since January. The gap between spot and contract rates is now minimal. Carriers have announced April GRIs, but they may not hold.
• Reliability: A Red Sea reopening would improve Asia transit times by two weeks.

South Asia to Europe

• Rates: Spot rates have declined from the beginning of the year by about 20%. Contract rates have remained flat but 15-20% below Spot.

Asia to U.S. (TPEB)
U.S. East & Gulf Coasts

• Supply & Demand: Demand is slightly weakening, and supply is abundant.
• Rates: Spot rates have dropped 50% since January 1. Early reports suggest new contract rates are 30-45% lower than expiring indexed contracts. This could be in expectation of the Red Sea/Suez reopening in the coming months.
• Reliability: Still very unreliable, with long transit times.

U.S. West Coast

• Supply & Demand: Demand remains steady, and supply is good.
• Rates: Spot rates have fallen 50% since January and continue to decline. Contract rates are 10-15% lower over the past three months.
• Reliability: Better than the East Coast but still below pre-COVID levels. Transit-times closer to the past normal levels.

South Asia to U.S.

• Rates: Spot rates down by a third since January. Contract rates remain stable.

Trans-Atlantic Westbound (TAWB)

• Supply: Good capacity with fewer blank sailings. New alliance services will increase stability.
• Rates: Peak Season Surcharges (PSS) and General Rate Increases (GRI) are being reduced or canceled.

U.S. Tariffs Update

• China to U.S.: A new 20% tariff has been introduced, on top of the existing 25% duty that started 5 years ago and those Biden initiated last September. Unlike previous duties, there are few exemptions. In retaliation, China has imposed counter-tariffs on U.S. goods.

Port Congestion Update

Severe congestion continues at major ports, including Hamburg, Rotterdam, Antwerp, London Gateway, Charleston, and Savannah.

The Evolving Carrier Alliance Landscape

New carrier alliances and strategic partnerships are reshaping global shipping:

These 12 carriers control 88% of total TEU capacity in the global market.

Stay Ahead with WOWL

With ocean freight conditions shifting rapidly, businesses need real-time visibility, proactive strategies, and expert guidance to navigate these disruptions. That’s where WOWL comes in.

WOWL offers:
• AI-powered supply chain insights to track disruptions in real-time
• SKU-level visibility for more precise inventory management
• Expert logistics advisors to optimize your transportation strategy
• Global support teams with "boots on the ground" at key ports

Take control of your ocean freight strategy today! Contact WOWL to see how we can optimize your supply chain and keep you ahead of the curve.