Dear all,

 

Did You Know That…

…Maersk MECL service will make a structural return to the Trans-Suez route. The MECL service is solely operated by Maersk, and connects the Middle East and India with the US East Coast.

…Hapag-Lloyd and Ocean Network Express (ONE) are not returning to the Red Sea in the near future due to ongoing safety risks, continuing to route vessels around the Cape of Good Hope. Despite a potential ceasefire, both carriers, along with partners like Maersk, require confirmed security before resuming Suez Canal transits.

…Our friend Steven Yuan from FS International China shared his market report on China-Europe trade as follows:

1. Carrier Pricing Pressure Ahead of Chinese New Year. Carriers are implementing significant rate reductions to secure cargo in preparation for the upcoming Chinese New Year (CNY) period. Vessel capacity remains high through late January and early February, with a relatively low number of blank sailings. Under substantial pressure to fill vessels before the holiday, carriers' aggressive pricing is likely to accelerate the downward trend in CIF market rates. The pricing influence of Maersk has weakened, and rate initiatives from THE Alliance (whose network has higher exposure to the CIF market) may become the primary driver of the next round of freight declines.

 

2. Major Adjustment to China's PV Export Tax Rebate Policy
On January 9, 2026, China's Ministry of Finance and State Taxation Administration issued the Announcement on Adjusting the Export Tax Rebate Policy for Photovoltaic and Other Products, introducing significant changes:

• Complete Cancellation for PV Products: Effective April 1, 2026, the Value-Added Tax (VAT) export tax rebate for photovoltaic products will be fully eliminated.

• Phased Reduction for Batteries:

  • From April 1 to December 31, 2026, the VAT export rebate rate for battery products will be reduced from 9% to 6%.

  • Effective January 1, 2027, the export tax rebate for battery products will be canceled entirely.

Trade Impact Analysis:
From January to October 2025, China's exports of photovoltaic modules to Northwest Europe accounted for an estimated 160,000 to 210,000 FEU in containerized trade volume (approximately 16,000 to 21,000 FEU per month). This represented about 4% to 5% of total Asia-Northwest Europe container trade during that period.
Following the policy implementation in April 2026, these exports are projected to decline by 5% to 10%, translating to a reduction of roughly 1,000 to 2,000 FEU per month on the Asia-Northwest Europe trade lane.

 

3. Potential Resumption of Suez Canal Transits
Market monitoring indicates that several carriers, including Maersk, may be gradually restoring services via the Suez Canal. According to reports:

• Maersk has announced the resumption of transit through the Red Sea and Bab el-Mandeb Strait for all vessels in its MECL service, marking the reinstatement of its first full Red Sea routing.

• The Ocean Alliance (CMA CGM, COSCO, OOCL, Evergreen) has adjusted its Far East Asia Loop 1 (FAL1) service to resume eastbound transit via the Suez Canal. This service, which includes a call at Jeddah, connects Northern Europe with ports in China, Malaysia, and Singapore.

Market Implication: A broader recovery of Suez Canal transits would further increase available vessel capacity, applying additional downward pressure on freight rates.

… Container spot freight rates accelerated their declines on the main east-west trades this week, as demand failed to match capacity and freight buyers found space plentiful.The spot rate on the Shanghai-Rotterdam component of Drewry’s World Container Index (WCI) lost 9% week on week.

…DP World handled over three million TEU at London Gateway in 2025 and plans further investments of £1 billion to expand the port.

 

…International Container Terminal Services Inc. plans to realize the South Luzon Container Terminal in Bauan, Batangas (Philippines), with an investment of 800 million USD by 2028.

…This week, global shipping rates for containers dropped sharply, erasing most of the gains from a brief rally in January. Carriers are finding it hard to keep prices steady due to weak demand and ongoing geopolitical issues.

 

…Our esteemed member CHS Group in Finland is celebrating 30 years of logistics expertise. On behalf of all EAA colleagues, we wish our friend

and CHS Group owner Mr. Juha Harjula and his team all the best for the future and we’ll meet soon at the AGM in Istanbul, from 24-27 March.

 

…Your editor had a number of meetings in Morocco and Tunisia last week to recruit strong, reliable partners for the network. You may expect more news on this project shortly.

 

…The air freight industry closed 2025 with a 6% increase, despite challenges from stagnating e-commerce deliveries from China and geopolitical tensions.

 

…On January 20, 2026, the season for exporting flowers in celebration of Valentine’s Day began at Mariscal Sucre International Airport in Quito. This phase will last until February 10. According to initial industry estimates, a 6% increase in flower exports compared to the previous year is expected. In 2025, Ecuador recorded a total export of nearly 29,000 tons of flowers during the most successful season in its history. These were shipped on 534 flights from Mariscal Sucre Airport. For the current season, an increase in flight connections is also anticipated.

…NARENDRA MODI’S guests of honour at Indian Republic Day on January 26th will not just be there to witness the pomp and parades. India’s prime minister has invited the European Union’s two top officials, Ursula von der Leyen, president of the European Commission, and António Costa, president of the European Council, which represents the EU’s member states. Europe and India face a similar sort of problem. “They are trying to preserve their strategic autonomy as secondary players in their respective spheres, India v China in the Indo-Pacific and Europe v America in the Atlantic.

 

…The Port of Antwerp-Bruges experienced a 4.1% decline in total 2025 cargo throughput to 266.5 million tonnes, driven by weak bulk volumes, geopolitical tensions (Ukraine war), and 25 days of industrial action. While container traffic showed resilience with a 0.4% increase in tonnage, dry and liquid bulk fell sharply, alongside reduced export volumes due to US import duties. 

…Predictability is key now as forwarders select carrier partners. Carrier behaviour in moments of crisis has become the determining factor in forwarder decision-making in the chaotic, post-pandemic reality, with warnings of ocean freight’s “stabilising function” coming under threat.

 

…Even in the most successful US films, men still dominate the dialogue – roughly two thirds of all speaking time goes to male characters.

 

…Around 90% of people occasionally think they feel their phone vibrating – even when it’s completely silent. The phenomenon is known as "phantom vibration syndrome".

 

…The risk of being killed in a motorcycle accident is around 4,800 times higher than when travelling by train.

 

Wishing you all a very good rest of the week !

 

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.