Asia-Europe

For shippers whose priority is low price, the possibility certainly exists that the next few years will serve up a favorable pricing environment, if not highly favorable, writes Peter Tirschwell.

The carrier, as it sends a US-bound vessel through the region, said if security thresholds hold it will take a “stepwise approach” toward gradually resuming navigation on east-west services via the Suez Canal and Red Sea.

Hapag-Lloyd customers have expressed concerns about liability exposure if a US-India service were to resume transits through the Red Sea and Suez Canal. .

While the alliance will strengthen its presence in Southeast Asia, the refined network to be rolled out in April has removed several direct calls in other parts of Asia.

Unless shipowners significantly postpone or cancel orders, the wallops of new tonnage added in 2027 and 2028 will dwarf the deliveries made this year and next.

The two Japanese vehicle carriers are the last to agree to a settlement figure in a long-running price-fixing case.

New analysis shows a systematic displacement of tonnage from primary to secondary trade lanes has occurred over the past two years, while a shortage of capacity is looming over the smaller shipping segment.

The rise in bookings is driving an increase in the capacity offered by ocean carriers on Asia to North Europe and the Mediterranean that this week reached record levels on both trades.

Mumbai-based forwarder executives have linked the pricing gains mainly to lower capacity amid multiple blank sailings during the month covering CMA CGM’s Epic service and Ocean Network Express’ IOX loop.

The import gateways have faced ongoing congestion this year amid strong demand on the Asia-Europe trade and limited buffer capacity at ports will be quickly overwhelmed.

The conflicting interests became apparent last week when the Suez Canal Authority issued a statement indicating that Maersk planned to resume normal transits in December, triggering a quick response from the carrier that no timeline had been set.

First-quarter charges will rise across all trade lanes that cover the European Union from Jan. 1, when carriers will be responsible for 100% of their carbon emissions.

While liners will remain in the black this year, the growing capacity overhang and weak demand expectations will undermine rate-increasing efforts through 2026, analysts say.

Not enough terminal investment in Europe has left ports unable to handle the rising demand, and there is no quick fix, according to analysts and carriers.

A series of freight-all-kinds increases since Oct. 1 has held up the spot market on the trade, with carriers aiming to sustain the pricing momentum through fourth-quarter contract talks.

Europe’s third-largest port offset a sharp drop in US trade with solid increases in imports from China, Malaysia and India, while seeing big gains in intra-Europe volumes.

As contract tendering season on the European trades gets underway, carriers are stepping up capacity management efforts to elevate spot rates and better match supply with demand.

Remarks from the group’s CFO came as the carrier’s third-quarter financials showed year-over-year declines.

The carrier’s CEO also confirmed Gemini is mulling a price premium, which he forecast would be a “small three-digit number per TEU” to reflect the inventory cost savings customers achieve through the alliance’s consistent on-time delivery.

The rebels are incentivized to keep up some level of threat in the Red Sea because they are loathe to give up leverage that generates financial and military support, according to an S&P Global analyst.

With typical seasonal lulls setting in after a slower-than-usual peak season, forwarders generally do not expect rates on the trade lane to show any sort of an uptick until January.

“Significant uncertainties” due to US tariffs and a capacity oversupply amid ongoing new vessel deliveries prompted the Singapore-based carrier to sharply reset performance expectations for the balance of its fiscal year.

While most of the carrier’s vessels continue to be diverted around southern Africa, the backhaul rerouting of two Ocean Alliance vessels through the Suez suggests security concerns may be diminishing.

A share in Eurogate’s CTH facility would give the carrier a firm foothold in Europe’s third-largest container port.

Europe’s busiest container port has maintained its growth so far this year despite persistent congestion, intermittent strikes and growing geopolitical tensions.

Slowing demand from sluggish European economies and excess ocean capacity on the Asia-Europe trade lane are frustrating liners’ attempts to raise rates.

The partnership is part of a broader effort to advance the development of the India-Middle East-Europe Economic Corridor via the Adriatic’s main port.

But it will take several months of sustained peace before liners are confident enough of safe passage to redirect mainline services through the Suez Canal, according to an HSBC report.

The persistent pressure on India-Europe rates comes despite sporadic capacity cuts implemented by major carriers.

The carrier’s operational update did not provide profit and loss figures, but the declining revenue is an indication of tough times ahead as liners sail into their financial reporting season.

Shippers and their forwarders will soon be launching long-term contract tenders for 2026 as the spot market — which heavily influences the contract market — slides closer to pre-Red Sea attack levels.

A string of storms in September has roiled vessel schedules and terminal operations throughout the region.

After initially holding back on blank sailings, carriers have announced additional capacity withdrawals to match the slowing demand ahead of Oct. 1, when Chinese factories close for eight days for the National Day holiday.

The public and private funding will go predominantly toward cutting shipping emissions, developing alternative fuel technology and rolling out shoreside power at UK ports.

Delivery of the fuel will begin immediately and build on a strategic collaboration Hapag-Lloyd established with Shell in 2023 to accelerate the decarbonization of its fleet.

Despite freefalling spot rates and lackluster demand expectations for the fourth quarter, carriers have been far more conservative in blanking sailings this year.

The dismal outlook for the second half of the year is prompting Wall Street analysts to rein in earnings expectations as many carriers also report steep declines in their profit margins amid a mix of overcapacity and “tariff-driven cost escalation.”

The unit cost of moving a container has been pushed higher compared with the prevailing pre-pandemic price structure, according to carrier executives, prompting cost-control measures.

The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say.

Carriers have responded by adjusting schedules and blanking sailings, but the capacity management has so far failed to hold up prices on the trade lane.