Asia-Europe

A strong supply-demand balance has developed in favor of container shipping lines, with rate increases and surcharges sticking amid an early start to the peak season.

The end of the Indus Express service comes as Indian exports to the US East Coast in April were down 25% year over year.

The move is likely to raise costs for forwarders and carriers as they devote more resources to ensure compliance with rate filing procedures, and it could hasten a wider shakeup in China’s logistics sector.

Costs rose sharply following the start of the war, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly BAFs.

Volumes under contract when the Middle East war began were locked into quarterly bunker fuel adjustments, and those costs are set to be passed on to shippers at the start of the third quarter.

The alignment between demand and the supply of capacity has individual dynamics across each trade lane and different consequences for the newbuild, second-hand and charter markets, writes Jeremy Masters.

Yet liner executives insist that much of the surplus tonnage can be absorbed by a combination of vessel management, trade imbalances, increased scrapping and the ongoing effects of geopolitical disruptions.

Taiwan’s number two carrier has been involved in three service launches this year, with plans to add 22 container ships to its fleet between now and early 2030.

The carrier is increasing capacity in response to growth in Indian imports from China and other Asian production markets in recent years, propelled by input sourcing to support rapid industrial development.

Strong demand for roll-on/roll-off cargoes is expected to continue through 2026 as China enjoys “exceptional” export growth.

But CEO Vincent Clerc said while the carrier assesses the situation with the view of eventually restarting some services through the region, Maersk would be taking a cautious approach, with the safety of seafarers the “first priority.”

Rates to the US East Coast and Europe are down by as much as $500 per FEU in recent weeks as ocean carriers look to lift volumes that softened in April.

The 14-day lead time now in place at Asian hubs would become a “global standard” for vessels seeking bunker fuel should the key waterway remain closed for another month, says S&P Global’s Fotios Katsoulas.

Stockholders representing 97% of the shares in Zim, equivalent to 57.2 million shares, voted Thursday in favor of the $4.2 billion deal that was announced in mid-February.

The carrier and ports group said revenue on all major trades, except its domestic network, fell in the first quarter, resulting in a 13% drop in revenue from container shipping.

While acknowledging a “volatile geopolitical landscape,” the carrier nonetheless says its forecast for the year assumes “operational conditions will stabilize to pre-conflict levels by summer.”

The Iran conflict, which began late in the first quarter, had little impact on the forwarder’s first-quarter business, accounting for just a 1.5% decline in ocean freight volumes.

The conflict could also spur increased spending on ports and landside infrastructure in the Middle East as investors seek to develop alternative transport solutions to avoid areas that have been closed or heavily impacted by the hostilities, executives said Thursday on a pair of webinars.

But the port still bested Rotterdam, normally Europe’s busiest box port, although neither gateway said it experienced much disruption in the quarter from the war in the Middle East.

Hapag-Lloyd said the changes “reflect the consolidation of capacity into alternative services to ensure continued reliable coverage in the region.”

Some 320 gigawatts of new wind capacity are expected to be added worldwide between 2026 and 2030, comprising about 200 GW of onshore capacity and 123 GW offshore, according to a new report.

The three liners saw their first-quarter revenues come in between 9% and 21% lower than last year amid sharply softer rates on the key Asia-US and Asia-Europe trades.

Local BCOs are adopting a wait-and-watch strategy until there is greater clarity regarding cargo insurance costs and vessel passage through the Strait of Hormuz before committing to contract deals with carrier partners, sources say.

The doubling in bunker fuel prices in some key hubs since the war in the Middle East began six weeks ago is focusing industry attention on energy costs as supply scarcity worsens.

While the $4.2 billion transaction still requires approvals from the Israeli government, it points to an appetite for consolidation among carriers despite the lack of financial distress that accompanied earlier merger eras.

The start to the year was largely unaffected by the Middle East conflict, but the lagging effect of high bunker fuel prices will be felt from the second quarter onward.

Most of the increases represent a significant premium on current pricing levels, but it remains to be seen how sticky the aspirational rates will be with cargo markets also under pressure from high energy prices.

The carrier said the ships, with a combined value of up to $1.8 billion, will be deployed on Asia-Europe services as part of a strategic plan to increase the size of vessels serving that trade by 2030.

Polyethylene prices have nearly doubled since the end of February as Iran’s closure of the Strait of Hormuz has cut off the region’s petrochemical plants from the rest of the world.

With operations at Salalah suspended on Saturday due to a drone strike, Hapag-Lloyd has positioned its upcoming westbound sailing on the India-USEC “TPI” service to call at Port Qasim in Pakistan.

The French liner is implementing changes to its Epic and Medex services due to operational complications caused by the war in the Persian Gulf.

An estimated 30% of Asia-Europe air cargo is routed via the Middle East, so the sudden closure of airspace in the Persian Gulf has left forwarders scrambling for capacity on freighters and passenger aircraft out of Asia.

China’s largest shipping company commented on current geopolitical events as it released its 2025 financial results, which saw net profits plummet 38%.

Signs of stress are emerging as boxes pour into a land transport network crucial for the flow of cargo across the war-torn region.

An estimated 30% of Asia-Europe air cargo capacity is routed via the Middle East, and with options through the region severely constrained by the US-Iran war, a rush for Asia-Europe air cargo capacity is pushing up prices.

Truck-air solutions are also taking off with rising interest from shippers as the Middle East war removes the popular sea-air services via Jebel Ali in the UAE as a viable option.

Ports closest to the Persian Gulf are under mounting pressure with a second round of containers inbound as carriers start to offload cargo that was already on the water last week when Middle East bookings were canceled.

Carriers have defended rate increases for shipments out of Asia and elsewhere, citing the higher cost of operating when tonnage and equipment are tied up in the Middle East due to the war.

The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports.

The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.