Despite a decline in prices for most freight futures contracts listed in Shanghai, the market remained resilient, as today’s drop occurred on much lighter volume than yesterday. Both EC2510 and EC2512 closed near the day’s highs. Traders continue to show strong conviction that spot freight rates will not fall below $2,100 per FEU through June 2026, with a seasonal uptick expected in December potentially testing the $2,900 per FEU level. In the physical market, the liners are mostly offering $28
Contrarian traders entered the market this morning, driving up the prices of all futures contracts except for the EC2508. Although most contracts surrendered the majority of their gains by the close, all long-dated contracts still finished higher on the day. Furthermore, open interest rebounded to 78,000 from 74,000 yesterday. The EC2510 alone has an open interest of 54,361 contracts, representing approximately $500 million in value. This indicates that there is no shortage of bullish sentiment
Container carrier remain mired in an earnings downturn with EBIT earnings falling by 80 to 90% since the recent peak in the 3rd quarter of 2024. 2nd quarter 2025 EBIT at both CMA CGM and ONE have retreated to levels last seen in 3rd quarter of 2023, with ONE’s EBIT margin barely above breakeven. Results released by the carriers so far have disappointed relative to expectations. ONE slashed its half-year and full-year EBIT guidance by 20% and 43% respectively. CMA CGM did not issue formal guidan
MSC is believed to have fixed the 8,204 teu TSC DORADO and TSC LONDON that were released from detention in Malta in July after idling for the last 3 years. They will join MSC after completing drydock in Turkey. The removal of these 2 ships from the idle list has pushed the idle fleet to its lowest level in over 2 years. MSC has also taken the 8,827 teu VALIANT on 4 August for new 5 year charter on private terms after the ending its last charter to Hapag-Lloyd. It was part of a forward charter de
New SCFI rate assessments for 40’ containers are now available, with the assessments showing a steep decline in Med rates with FEU rates already falling behind North Europe. The removal of 9 SeaLead ships with an average capacity of 5,700 teu on the China-Med 5CX service will affect rates to the East Med and Black Sea as the service is focused on Egypt and Turkey but is not expected to impact rates to the West Med. North Europe rates also remain under pressure with several carriers offering sp
Global container throughput growth have been revised upwards and is expected to grow by 2.6% in 2025, in line with the IMF’s revised global GDP growth outlook released last week due to cargo front loading during the first half of this year, lower effective US tariff rates, improved financial market and government fiscal stimulus by several key countries. Despite the revision, the US tariffs have already spurred higher inflation and slower job growth which will lead to slower growth in the 2nd h
Register Free Trial Revised US tariffs that will take effect on 7 August will have a negative impact on overall global demand even though the average tariff rates were lower than initially announced on 2 April. Although global container growth projections have been revised upwards, over-supply pressure persists with freight rates remaining under pressure after the SCFI extended its losing streak to its 8th consecutive week. Further rate declines are expected throughl October, with prospects for
MSC will introduce a new Asia-West Africa Iroko service connecting Ningbo, Nansha, Singapore, Pointe Noire, Contonou, Lagos, Onne, Lobito, Singapore, Xiamen, Ningbo from 10 September 2025.
Maersk has introduced a new JP1 service connecting Dalian, Qingdao, Yokohama, Nagoya, Kobe, Dalian from 1 August 2025. The service turns in 14 days and deploys the 1,714 teu MCC SHENZHEN and 1,762 MTT SAPANGAR on a weekly frequency. ONE takes slots on the Maersk JP1 service as the IA9.
MSC will launch a new Far East-South America West Coast Alpaca service connecting Nansha, Hong Kong, Ningbo, Busan, Callao, Arica, Iquique, San Antonio, Nansha from September 2025. The first sailing is scheduled at Ningbo on 23 September with the 4,600 teu MSC LOME V, with up to 8 ships of 4,200 to 5,000 teu slated to join the service.