Did You Know That..

…Opportunity seen in India-Europe container trade. Despite overall capacity on the trade lane rising 24% after alliance re-alignments, there is still a shortage. It is unclear however if or when this would ease should the Red Sea crisis be resolved. Major carriers such as CMA CGM, Maersk, Hapag-Lloyd and MSC currently control 84% of capacity on the trade, with India’s state-owned SCI running just one neo-panamax ship.

…Reciprocal tariffs really mean chaos for global trade. America has tried reciprocity before, and discovered its flaws. What happens when you ditch the principles that underpinned global trade for three-quarters of a century? Donald Trump hopes to find out. He wants to levy “reciprocal” tariffs, which match the duties American exports face abroad, plus charges to offset any policy he deems unfair.

Trump administration official vows to tax foreign-flag ships calling at US ports.

·         ‘These taxes are going to be paid,’ asserts US commerce secretary Howard Lutnick

·         US source income is generally exempt from tax for foreign shipowners, but that could change

·         Lutnick cited both cruise lines and tanker operators as foreign entities that should pay tax

On one hand, US commerce secretary Howard Lutnick’s pledge to tax foreign-flagged ships could be just talk. On the other, cruise stocks lost $9bn in market cap on Thursday as a result of those comments — and Lutnick also mentioned tankers

…Jebel Ali Port records highest volumes since 2015. DP World handled 15.5 million teu at Jebel Ali Port in 2024, marking its highest container throughput since 2015. This represents an increase of 1 million teu compared to the previous year and accounts for nearly 18% of DP World’s global container throughput.

…Sweeping US plan to target Chinese ships would snare many non-Chinese operators.

·         The US plans to charge up to $1.5m for every port call by a Chinese-built ship

·         Chinese vessel operators such as Cosco would be charged up to $1m per US port call

·         Any ship operator that has even a single Chinese-built ship or a single newbuilding at a Chinese yard could face a new US port fee of $500,000 per call for all of its vessels.

The US Trade Representative proposal that targets Chinese maritime and shipbuilding interests is extremely aggressive and represents the largest financial threat to vessel operators thus far during the Trump administration. If the proposal is approved by the US president, it would have major implications for all US import and export trades in all shipping sectors.

……Taiwanese and South Korean liner operators are likely to be those least impacted by the US Trade Representative Office’s proposed levies on operators of Chinese-built ships.

…Strategic stakes: EU sharpens focus on Chinese port ownership.

·         Rising geopolitical tensions lead EU to scrutinise China’s influence over critical infrastructure, including ports

·         China’s state-owned port operators Cosco and China Merchants Port Holdings hold a presence in all of Europe’s major box hubs

·         Political backlash from investments in Hamburg and Klaipeda raises questions about China’s future expansion in Europe

China’s port expansion in Europe has brought mutual commercial benefits, funding infrastructure development and strengthening trade ties. However, amid geopolitical tensions, the EU is scrutinising China’s influence over critical infrastructure, particularly ports and the continental foothold of state operators Cosco and China Merchants. The EU’s refined FDI screening will shape future Chinese investments, but with limited new opportunities and long-term concessions, the immediate impact may be limited.

…Southern California ports see stellar start to 2025 as shippers front-load ahead of tariffs.

·         Ports of Los Angeles and Long Beach handle almost 1.9m teu combined in January, their best start ever to the year

·         January strength comes as shippers front-loaded in anticipation of tariffs and ahead of the Lunar New Year

·         US economic indicators in January show some warning signs

The ports of Los Angeles and Long Beach handled almost 1.9m teu in January, marking their strongest-ever start to the year. The surge was driven by shippers rushing to move cargo ahead of anticipated tariffs and the Lunar New Year, but economic indicators have raised concerns.

…In Germany, elections were held last weekend. Merz won the messy election then calls for independence from America. First he must build a coalition in Germany.

…Throughput down in Rotterdam – despite key investments. In 2024 the port of Rotterdam experienced a 0.7% drop in cargo throughput, reaching 435.8 million t. The decline was mainly due to lower volumes of coal and crude oil.

…Following a report by our friend Neal Rosenberg of Rose Containerline in the USA, Trump will move forward the tarriffs (25%) on Mexico and Canada with effect from March 4.

…How massive new US port fees could impact container shipping.

·         Cosco and Ocean Alliance would be impacted much more than competitors

·         CMA CGM, MSC, Maersk, ONE, Zim, and Hapag-Lloyd could also face big impacts

·         US exporters would be affected significantly more than importers in terms of rates.

The latest shipping-related proposal out of Trump’s chaos-inducing administration is the ‘big one’ for container lines. The new port fee plan is still in its early days, and just a proposal, but if it is implemented as currently written, it could drive major changes for US container shipping services

…AD Ports launches Al Faya dry port. AD Ports has unveiled the Al Faya Dry Port, its first such inland facility in Abu Dhabi (UAE). It’s digitally linked to Khalifa Port via Maqta Technologies’ advanced trade and logistics platform.

…Preparations for the upcoming annual conference, from 11-14 March in Boracay, PH, are in full swing. To date, we have 90+ confirmed participants from 40+ countries. It is still possible to sign up for this event.

All details can be found on the event-link:  https://cbpi-eaa.my.canva.site/home-page. 

…Cosco has launched an ’express’ ocean service to speed up the movement of Ecuadorean shrimps and bananas to China. Commencing with the 8,528 teu Xin Ou Zhou Guayaquil on Friday, the WSA5 service will call at Chancay in Peru and then Shanghai, and it is estimated that the reefers on board will reach China in 27 days, significantly fewer than the 35 to 55 on other services.

…People tend to eat more when they watch an action film than during a less exciting film..

…A flu virus can survive for 17 days on a banknote that’s been held by a person with a cold.

Wishing you all a fruitful (and flu-free)  rest of the week !