Did You Know That…

…Container spot rates still rising, heading toward Red Sea crisis highs.

• SCFI global composite index is now 2.2 times its level in late February, prior to the Hormuz crisis, and at its highest point since August 2024, during the Red Sea crisis

• One driver of frontloading: bunker adjustment factors are set to surge on July 1; 3Q26 BAFs will be second highest ever, only exceeded by 3Q22 after Russia’s invasion of Ukraine

• Spot rate gain is translating into higher share pricing; Maersk shares are up 27% since early May and up 50% year on year.

In early February, Maersk executives were talking about the depth and duration of a looming downturn. Four months later, the container market has completely changed. Liners are booking lucrative spot cargoes and there are reports of contract cargoes getting rolled.

…A trade war between the EU and China seems inevitable. Europe sees Chinese subsidies; China sees European weakness. The question is no longer whether Europe will pull up some drawbridges, but how many and how fast, and how it will deal with the consequences. The stakes are clear. Bankruptcies in the European Union have risen to levels last seen in 2015. Germany lost 143,000 jobs in industry in 2025. In most of Europe growth is sluggish and industrial production declining. In France and Germany hard-right parties lead the polls. At a summit on June 18th EU leaders will discuss how to cope with the Chinese challenge, in an increasingly dire global economy. Is China really behind Europe’s economic problems? The EU’s trade deficit in goods with China was about €1bn ($1.16bn) a day in 2025, roughly double the figure before the pandemic. Germany especially has seen a constant rise in imports from China and a steep decline in exports going there. Some see foul play. The OECD, a club of mostly rich countries, found Chinese firms got three to eight times more subsidies between 2005 and 2024 than competitors in OECD countries. Some would fail without them: 32% of industrial firms in China lose money.

…Iran: No Tolls in the Strait of Hormuz, but New ‘Service Fees’. ‘Peace deal’. Iran will no longer impose tolls on ships passing through the Strait of Hormuz, but it will charge “service fees” instead, according to the Iranian Ministry of Foreign Affairs following the peace deal reached between the United States and Iran. The fees, described as “maritime service charges,” are said to replace the previously proposed tolls and are reportedly included in the agreement between Iran and the United States. Iranian officials argue that the charges are not transit tolls, but payments for navigation services, environmental protection measures, vessel insurance, and other essential maritime services. The United States has consistently maintained that Iran should not be allowed to charge vessels simply for passing through the strategic waterway. However, Tehran has emphasized its intention to play a greater role in managing the Strait and to retain the right to levy charges related to services provided to shipping companies. Shipping traffic through the Strait of Hormuz will not be subject to tolls during the sixty-day period in which the United States and Iran continue talks on a final peace deal. Iran has stated, however, that vessels will eventually be required to pay a transit fee once that period ends.

…Major shipowners begin exiting vessels from MEG after US-Iran accord eases Hormuz restrictions

• Many large cargo ships owned by leading shipowners, which had been stuck in the MEG since February, are now starting to leave

• Moves follow the US and Iran signing its Memorandum of Understanding aimed at reducing tensions and lifting military restrictions affecting shipping through Hormuz

• Vessels include vehicle carrier Grande Torino, operated by the Grimaldi Group and Cosco’s aframax tanker Tong Lin Wan.

There are some 550 merchant ships of above 10,000 dwt that will need to be prepared to exit the Middle East Gulf, including 160 tankers, 200 bulk carriers, 60 containerships and 10 vehicle carriers, but greater clarity is needed before shipowners can begin transiting en masse, industry bodies say.

…Tariff repeal spurs Chinese containerized exports to the US, but unprepared countries face new conundrum.

• Chinese exports to the US have rebounded following the US Supreme Court’s decision to remove tariffs, supported further by a green energy and AI boom

• But some countries in Asia are preparing to face up to 12.5% in tariffs for alleged forced labour practices

• New tariffs could subject corporations to further regulatory complications, with China’s Decree 834 and 835 limiting information gathering for compliance purposes

• Asia-Pacific exporters may be unprepared to deal with tariff turbulences as many choose prioritize short-term measures, such as passing on the cost to consumers to manage tariffs.

China has posted the highest gains in transpacific exports, seeing a 33% rise in volumes compared to a year ago. But new forced labour tariffs could challenge Asian exports if enforced.

…MSC taking stake in Hapag-Lloyd dismissed as ‘fairy tale’. Maersk and Hapag-Lloyd were both quick to respond to enquiries about MSC’s interest in acquiring a stake in the German carrier, saying they did not respond to rumours.

…Does Donald Trump make Latin America a good bet? Nowhere in the developing world has done so well out of the past year. FOR AMERICA’S neighbours, Donald Trump’s second term has been unsettling. As well as disrupting trade and sending energy prices soaring—bad news almost wherever you are—Mr Trump is determined to impose his will on the western hemisphere. He has kidnapped the leader of Venezuela, sent gunboats to the Caribbean and threatened to invade Cuba. Yet Latin America is also benefitting from Trumpian chaos. In 2025, Mr Trump’s first year back in office, foreign direct investment (FDI) rose to an estimated $204bn, reversing a recent decline (see chart 1), while flows to the rest of the developing world shrank. Mergers and acquisitions (M&A) were up by nearly half. An index tracking Latin American stock markets from MSCI, which compiles such things, has risen by 60% since the start of 2025.

…Following a previous article, Jordex x Delft Solar Team: The Journey Has Begun. While Team Nuna 13S is preparing in the United States for the American Solar Challenge, Nuna 13S itself is safely packed in its flight case and making its way across the Atlantic Ocean. Its destination: Miami. From there, Nuna will continue to Minneapolis, where the next chapter of the adventure will begin. Before the starting signal is given, the team is exploring the entire race route in detail. Everything is focused on making the right decisions during the race. That requires thorough preparation and a collaboration in which every link in the chain plays a vital role—just like in a solar panel. As a logistics partner, we are proud to contribute to this journey, together with KLM Cargo, which is also closely involved in the process.

…China Has Opened a New Gateway to South America in Peru. The new port operated by the Chinese state-owned shipping company Cosco is designed to speed up the transport of raw materials to Asia and bring finished products back to South America. his ultra-modern port is located right next to a small fishing town, where some residents complain about disruption and nuisance caused by its operations. Others, however, welcome the employment opportunities it has created. The port also has ambitious expansion plans. Washington has expressed concerns that the facility could eventually have military applications within what it considers its sphere of influence. The new port in Peru is a joint venture between Cosco (60%) and the Peruvian mining company Volcan (40%). It serves as a strategic hub for exporting raw materials to China while importing products such as automobiles. For many local residents, the port represents the best opportunity for stable employment, while for others, it has significantly impacted their quality of life.

Wishing you all a very good week ahead !

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