Did You Know That…

…CMA CGM reaps rewards of Red Sea routings but warns of tariff turbulence. World’s third-largest containership operator posted group revenues of $55.5bn for 2024, a rise of nearly 20% on the previous year. French liner shipping giant flags potential impact of US’s higher tariffs, a factor that could prompt the ‘reorganisation of global supply chains’.

…A brief report on China to Europe trade from our friend Steven Yuan of FS International China: Overall, it seems that most carriers hope to increase the prices in April. There is a high probability that the prices may be further raised. However, considering the weakness of the overall market, it is expected that the actual transaction prices in the first half of the year will still remain at a relatively low level. The possible price fluctuation range may be between 1,800 and 3,500 base on FAK  It seems that for most long-term contracts, such as nac rate , the price range is between 2,000 and 2,500. Currently, the FAK price in the market has already fallen below this level. Of course, carriers will keep trying to push up the FAK price level, but this still depends on the market situation.

…Escalation in Red Sea threat expected after US air strikes.

·Houthis likely to extend target profile to US-affiliated vessels in retaliation

·Ships continue to resume and start Bab el Mandeb transits in wake of ceasefire

·Possibility for Houthis to become ‘desperate’ in need to show force

Traffic trends unlikely to change if target criteria is expanded.

…Asian container lines team up to launch new Mexican route. Asia-Mexico trade growth drives the new route as US pressures Mexico to block Chinese goods. Seven container liners behind new liner loop that will set sail between Asia and Mexico from April 30. China’s Sinotrans Container Lines(SCL), Hong Kong-listed TS Lines, Singapore-based SeaLead Shipping and Emirates Shipping Line, Thailand’s Regional Container Lines (RCL), and South Korean carriers KMTC Line and Sinokor Merchant Marine will launch the Asia-Mexico Express (AMX) service on 30 April. Each operator will contribute a 2,800 teu ship to the service.

…Rodolphe Saadé vows $20bn investment in US and pledges to grow US-flagged fleet. CMA CGM chief Rodolphe Saadé appeared alongside US President Donald Trump on Thursday to announce the investment. French liner CMA CGM plans to invest $20bn in the US over the next four years, and to expand its US-flagged fleet from 10 to 30 vessels, chief executive Rodolphe Saadé said as he stood alongside Donald Trump in the Oval Office.

…Elon Musk, the DOGE effect and the risks to US shipping trades.

·Trump’s new trade policies will require more federal manpower to enforce but that manpower is being gutted

·Concerns raised at TPM25 over CBP and FMC manpower as well as ability to enforce USTR proposal on port taxes for China-built ships

·Concerns on FMC go beyond manpower and include whether it will continue to be a truly independent agency

S President Donald Trump appears to be enacting policies without taking the practical consequences into account. Federal payrolls are being slashed at the very time that more federal workers will be needed to enforce maritime-related policies.

…FMC drastically reduces Covid-era fine for MSC, from $63m to $16m. Still a record fine but just quarter of the one first proposed by FMC. The investigation into Covid-era shipping practices of MSC was initiated by the Federal Maritime Commission in August 2023. The initially proposed penalty garnered headlines at $63m. The newly proposed amount by an administrative law judge, $16m, is far below that, but still a record.

…Cosco now links Contecon with Asia. Contecon Guayaquil has received the inaugural call of Cosco Shipping’s WSA5 service, the first direct link between Ecuador and Asia via Peru’s port of Chancay. The new service reduces transit time to Shanghai to 27 days, providing a faster and more reliable route for Ecuadorian shippers.

…According to a report by our member Transolve in Australia, in the 12 months ended December 2024, Australian wine exports grew by 34% in value, totalling $2.55 billion - the highest value since June 2021 - with total volume also increasing by 7% to reach 649 million litres over the same period. These highs were predominantly attributable to the amount of post-tariff shipments, which saw 83 million litres of wine, worth $902 million, flow into mainland China. However, when we put aside this unique driver of demand, the reality is that a combination of factors, such as health and wellness concerns and the rising cost of living has seen the international consumption of wine decline, resulting in a global oversupply of wine and increased competition in already strained supply chains. For example: Australian wine exports declined by 13% in value to $1.64 billion and 7% in volume to 565 million litres during the 12 months to December 2024.

…Transatlantic rates have been resilient but trade war fallout looms.

·EU is retaliating against US tariffs on European steel and aluminium

·Trump threatens 200% tariff on European alcoholic beverages, which represented 9% of transatlantic westbound container volumes last year

·Drewry WCI Rotterdam-New York index tops the global composite index for the first time since the Red Sea crisis began

Spot rates in the transatlantic westbound trade have held up better than Asia-US and Asia-Europe rates this year. However, future Europe-US cargo flows are under threat as tariffs and retaliatory tariffs pile up.

…CK Hutchison agrees $22.8bn deal to sell off Hutchison Ports stake. CK Hutchison plans to relinquish controlling stake in HPH which includes interests in 45 ports comprising 199 berths in 23 countries, but will keep Chinese port assets. CK Hutchison Holdings has agreed in principal to sell 80% controlling stake of Hutchison Ports group, to consortium led by American investment giant BlackRock, which includes MSC’s Terminal Investment Ltd. The deal includes 90% share in Panama Ports Group, however, Hong Kong-based company states move was unrelated to reports of political pressure asserted by the US and ‘purely commercial in nature’.

…Can anything get China’s shoppers to spend? An economic recovery depends on it. Yet a new action plan may not do the job. Installing more lifts in multi-storey buildings, extending the hours of children’s clinics during flu season, encouraging foreign direct investment in camping. These are some of the ideas sprinkled throughout China’s “special action plan” to boost consumption, which was published on March 16th, a Sunday, thus extending the hours of China’s journalists.

…Airport Authority Hong Kong (AAHK) is advancing its ‘Airport City’ development, launching the new ‘Skytopia’ brand to attract global business. The initiative aims to enhance Hong Kong’s role as a key logistics and aviation hub.  

…Last week, from 11-14 March, we held the annual conference in Boracay, Philippines. Members from all continents enjoyed the unique venue and the meaningful conference with lots of inspiring insights and interactive networking moments. The event was perfectly hosted by our esteemed member CBPI Philippines. A video with impressions of the conference will be shared with all of you shortly and you can also expect an announcement of the date and venue for the next year’s conference.

…If you mix alcohol with the diet version of a soft drink you’ll get more drunk than if you mix it with its sugary equivalent.

Have a good rest of the week !