Freight & Logistics Update 6 March 2025

Good Day Clients & Partners,

Please find below the Freight & Logistics Update for the week.  As always, the Inter-Sped team are ready to go the extra mile for you – so don’t hesitate to contact us. 

SOUTH AFRICA

There is a possibility that due to geopolitical risks internationally, we could foresee a fluctuation in freight rates in the upcoming months.

Air Freight

Globally: Air cargo volumes are predicted to rise by 5.8% year on year (IATA) , supported by e-commerce and Red Sea-related demand.

Imports: All services running smoothly. 

Exports:

• Services ex ZA are all running smoothly, no major delays experienced this week, rates remain stable.
• British Airways has a backlog out of JNB- most shipments are trucked to Cape Town for departure, +/- 5 day in advance booking required.

Sea Freight

Imports:

• South African Ports continue to face congestions and delays primarily due to severe shortage of equipment and weather conditions.
• Port Operations were plagued by unfavourable weather.
• Cape Town has also been identified as one of the ports most affected by climate change.
• Container bookings are still a huge problem.  Transporters continue to voice frustrations over persistent inefficiencies in the booking process.

Exports:

• Minimal vessel departure delays experienced at Durban Port.
• Services running much smoother than previous quarter.
• Cape Town’s windy weather conditions are affecting vessel departure / stack dates. 

Please note: all local export surcharges (annual tariff increase) and transportation costs are set to increase as of the 1st of April 2025.

 

Road Freight

Local: Services in full swing and running smoothly.
Exports:

• Services running smoothly with borders operating as normal.
• DRC Remains open as unrest hasn’t yet effected the southern regions serviced via road, though we remain in communication with our road freight teams servicing the area as the situation progresses. https://www.bbc.com/news/articles/cnvz5g420mdo 

Port Updates

DURBAN

The port has experienced low wind speeds during the week. Appointment slots are constrained due to high volume of containers moving through Durban terminals.. All IDMs continue to move as scheduled.

• Pier 1 : 0 days delay
• Pier 2 : 0 days delay
• Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced strong winds during the week. Normal volumes of traffic and operations continue as per normal. IDMs are moving as scheduled.

• CTCT : 6-8 days due to some wind stoppages.
• MPT : 0 days some wind stoppages forecasted for the weekend.

 

PORT ELIZABETH

The port has experienced windy weather during the week. Normal volumes of traffic and operations continue as per normal. IDMs are moving as scheduled.

• PECT : 0 days delay however high swells expected. Terminal maintenance planned.
• NCT : 0 days delay however high swells expected.

 

AFRICA & INDIAN OCEAN ISLANDS

East African ports continue to experience congestion. Export scheduling to the region is erratic at present resulting in multiple changes to published schedules. We will continue to monitor the situation and provide updates accordingly.

Air Freight

Imports: All services running smoothly.

Exports: All services running smoothly.  

• Air France is no longer servicing: Ougadougou, Burkina Faso, Bamako Mali, N’djamena, Niamey. Cargo into Senegal on Ethiopian Airline has a +/- 2 week in advance booking due to capacity ex ADD-DSS.
• Kenya Airways are experiencing major delays connecting via NBO, due to reduced capacity ex NBO – JNB Airport, expect a 7–10-day delay on these flights. Currently there is a backlog of roughly 20tons of cargo, with perishable cargo and AOG cargo taking preference for space.
• Ethiopian airlines has a huge backlog ex Addis Ababa to DSS and BKO +/- 1 week delay due to passenger baggage. 

Cross Trade – Air: Rates and availability are back to normal and services running well.

Sea Freight

Imports: Port congestions continue & erratic sailing schedule.

Exports:

• Port Louis – Cyclone Garance has struck Mauritius forcing the closure of Port Louis. 
• Majority Indian Ocean Island , Australia and New Zealand cargo will be routed via Hambantota, Sri Lanka, there after proceeding to Port Louis by Mid-March. Please expect vessel delays. 

Road Freight 

• Local freight operating as normal – some minor delays have been experienced due to local heavy rains in Johannesburg. 
• Road freight exports operating as normal. Borders to Botswana have mostly normalised after previous floodings at the Groblersbrug Border Post. 

Port Updates

ANGOLA

• Berthing delays of 2 days experienced at Luanda port.

 

GHANA

• Berthing delays of 2 days experienced at Tema port.

 

IVORY COAST

• Berthing delay of 1 day experienced at Abidjan port.

 

KENYA

• Berthing delays of 5 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delays of 3 days experienced at Port Louis. Mauritius experienced cyclonic weather conditions which led to all economic activity being stopped on 27th and 28th February. 

 

MOZAMBIQUE

• Berthing delays of 2 days experienced at Maputo port.

 

NAMIBIA

• Berthing delay of 1 day experienced at Walvis Bay port.

 

NIGERIA

• Berthing delays of 4 days experienced at Apapa port. High levels of congestion continue to be experienced leading to long queues for offloading and collecting containers. Please expect a potential disruption to delivery schedules.

 

SENEGAL

• Berthing delays of 5 days experienced at Dakar port.

 

TANZANIA

• Berthing delays of 6 days experienced at Dar es Salaam port.

 

NORTH AMERICA

Air Freight

Imports: All services running smoothly with minor delays during transhipment.

Exports: All services running smoothly.  Rates are stable.

Sea Freight

Imports: Port congestions continue as a result of the strikes & erratic sailing schedule.

Exports: Services are running smoothly with minimal delays.

Port Updates

CANADA

Canadian West Coast ports – Weather across Canada has improved over the past 7 days and both CPKC and CN Rail have lifted previously implemented tier restrictions.

MONTREAL

• Berthing delays of 2 days experienced at this port.

TORONTO

• Berthing delays of 7 days experienced at this port.

VANCOUVER

• Berthing delays of 9 days experienced at this port.

 

USA

Terminals Updates:

• NEW YORK / NEW JERSEY – Vessel waiting time is up to 5 days. High level of congestion and a shortage of equipment is being experienced. New cranes have arrived at APMT and are currently being assembled and commissioned. APMT New York is facing high demand for gate appointments and may not be able to accommodate all requests, especially on the cut-off day.
• NORFOLK– Vessel waiting time is up to 4 days.
• CHARLESTON – Vessel waiting time is up to 2 days. Substantial completion of the toe wall project has been reached and only one minor punch list item remains. Berth deepening will begin in midMarch bringing berths 1 and 2 down to the new 54’ project depth as part of the toe wall project. Until dredging begins around the second week of March, all three berths will be fully operational. The dredging will take about two weeks, with some minor schedule disruptions expected. Normal operations are expected to resume by late March.
• SAVANNAH – Vessel waiting time is up to 9 days. Minimal fog delays during this week allowed the port to work more vessels compared to last week and reduce the back log.
• MIAMI – Vessel waiting time is up to 1 day.
• HOUSTON – Vessel waiting time is up to 4 days.
• OAKLAND – Vessel waiting time is up to 3 days.
• LOS ANGELES/ LONG BEACH – Vessel waiting time is up to 2 days.
• SEATTLE – Vessel waiting time is up to 3 days.

 

Vessel Scheduling Amendments (information below is correct at time of weekly publication):

• MSC Resilient III – with voyage 508N will complete a split call in Cape Town to discharge and load.

 

LATIN AMERICA

Air Freight

Imports: All services running smoothly.

Exports: All services running smoothly.  

Sea Freight

Imports: Vessel Scheduling Amendments (NB to note that these schedule amendments will impact both inbound and outbound cargo and container movements). Scheduling changes are announced by carriers with short notice.

Exports: All services running relatively smoothly. 

Port Updates

ARGENTINA

• Berthing delays of 3 days experienced at Buenos Aires port.

 

BRAZIL

• Berthing delays of 3 days experienced at Santos port. Brasil terminal only working with 2 piers.

 

MEXICO

• Berthing delays of 3 days experienced at Altamira and Veracruz ports, and 2 days at Manzanillo port.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN

Air Freight

Imports: Services running smoothly.

Exports: All services running smoothly.  No major delays experienced this week, rates remain stable. 

Sea Freight

Imports:

• Vessel schedule delays continue to impact the region & extreme weather conditions delaying port operations.
• Ongoing strikes in Le Harve are expected to cause significant port operation delays.

Exports: Terminal delays experienced with exports into France. Considering the ongoing port strikes, the situation will continue to be closely monitored.

English Channel: Extreme weather conditions continue in the English Channel and the Bay of Biscay, severely impacting vessel movement and port operations ,and might cause delays to South Africa bound vessels and vessels sailing North to Rotterdam/London. We will keep you informed if there are any significant deviations to the schedules.

Port Updates

 

BELGIUM

• Berthing delays of 4 days experienced at Antwerp port.

 

FRANCE

• Berthing delays of 10 days experienced at Le Havre port. Strike actions continue for all French ports including Le Havre with 4 hours of stoppages on 2 or 3 days per week (this week 24 + 28/02). Additionally, 48 hours 26 + 27/02. For WK10 another 4 hours announced for 04 + 06/03. Some bunching due to high vessel demand.

 

GERMANY

• Berthing delays of 4 days experienced at Hamburg port and 3 days at Bremerhaven port.

 

ITALY

• Berthing delays of 7 days experienced at Genova port and 9 days at La Spezia port.

 

NETHERLANDS

• Berthing delays of 5 days experienced at Rotterdam port. Delta II: Collective labour agreement under dispute between terminal operator and union. Union with strike actions and slow down operations for an unknown duration. Consequently, impact to operations cannot be ruled out however, vessels are still being handled.

 

SPAIN

• Berthing delay of 1 days experienced at Barcelona port. FCL containers transshipping in Algeciras have expected delays of 1-2 weeks due to port congestion.

 

SWEDEN

• Berthing delay of 1 day experienced at Gothenburg port.

 

TURKEY

• Berthing delay of 1 day experienced at Istanbul port.

 

UNITED KINGDOM

• Berthing delays of 3 days experienced at London Gateway port.

 

INDIAN SUB-CONTINENT & MIDDLE EAST

There is still a risk of the continuation of the Red Sea crisis much further into 2025.

Air Freight

Imports:

• Services are running smoothly. 
• In the Middle East however, airlines have suspended services to and from some countries/territories.

Exports: All services running smoothly.  Rates are stable. No major delays experienced this week.

Sea Freight

Imports: All services running smoothly.  

Exports: All services running relatively smoothly. 

Port Updates

INDIA

• Berthing delays of 2 days experienced at Chennai port and 3 days at Nhava Sheva port.

 

UNITED ARAB EMIRATES

• Berthing delays of 2 days experienced at Jebel Ali port.

 

SRI LANKA

• Berthing delay of 1 day experienced at Colombo port. FCL containers transshipping in Colombo have expected delays of 1-2 weeks.

 

ASIA PACIFIC (Including Oceania)

Exports: All services running smoothly.  

Sea Freight

Imports:

• Singapore is still facing congestion due to space constraint, caused by vessel delays from S.A and Far East ports from various shipping lines, please factor in a +/- 2-week delay.
• Space constraints are anticipated after the Chinese New Year with blank sailings from week 6. Ports are currently facing congestions. The worse affected Ports includes Shanghai, Tokyo, Ningbo, Busan & Manila, although the lengths of delays varies by container line.

Exports: 

• Tropical Cyclone Alfred is forecasted to make landfall as a Category 2 cyclone between Brisbane and the Sunshine Coast later this week.
•  As a precaution, Brisbane Ports and Brisbane CFS Depots are closed.
• The timeline for reopening will depend on the cyclone’s impact, and we anticipate service disruptions possibly through to early next week.

Port Updates

HONG KONG

• Berthing delay of 1 day experienced at this port.

 

KOREA

• Berthing delay of 1 day experienced at Busan port.

 

MALAYSIA

• Berthing delay of 1 day experienced at Port Kelang. FCL containers transshipping in Tanjung Pelepas have expected delays of 1-2 weeks.

 

NANSHA

• Berthing delay of 1 day experienced at this port.

 

NINGBO

• Berthing delay of 1 day experienced at this port.

 

QINGDAO

• Berthing delay of 1 day experienced at this port.

 

SHANGHAI

• Berthing delays of 2 days experienced at this port.

 

SHEKOU / YANTIAN

• Berthing delays of 1 day experienced at Shekou port and 4 days at Yantian port.

 

XIAMEN

• No berthing delays experienced at this port.

 

XINGANG

• No berthing delays experienced at this port

 

SINGAPORE

• Berthing delay of 1 day being experienced at this port. FCL containers transshipping in Singapore have expected delays of 1-2 weeks.

 

TAIWAN

• Berthing delay of 1 day experienced at Kaohsiung port.

 

THAILAND

• Berthing delay of 1 day experienced at Bangkok port.

 

VIETNAM

• Berthing delay of 1 day experienced at Ho Chi Minh and Hai Phong ports.

 

NEWS ARTICLES

Time to reverse ‘decade-long decline’ in South African logistics

27/02/2025

The decline in South Africa’s transshipment cargo underscores a decade-long downturn in the country’s logistics sector, according to the South African Association of Freight Forwarders (Saaff). Their latest data highlights the urgent need for structural reforms to address this issue. Over the past few years, transshipment volumes at South African ports have steadily decreased, with the proportion of transshipment shipments falling from 23% in 2016 to just 13% in 2023. This downward trend has weakened port competitiveness, resulting in lost revenue, diminished economies of scale, and reduced global shipping connectivity.

Saaff’s data shows that many transshipment cargos have shifted to alternative hubs like Walvis Bay in Namibia and Maputo in Mozambique, underscoring inefficiencies in South Africa’s local port operations. The lack of investment in the country’s logistics infrastructure, particularly its rail network and port facilities, is a key factor contributing to the decline. The situation is further exacerbated by adverse weather conditions along the country’s coast, which can disrupt port operations. For instance, the port of Cape Town lost over 40 operational hours in one week due to bad weather.

While Saaff stresses that urgent interventions are necessary to reverse the loss of transshipment cargo and protect South Africa’s strategic position in global trade, there are signs of progress. Cape Town is set to receive nine new port cranes, and Durban is upgrading its port infrastructure with new RTGs and STS cranes. Despite these positive developments, Saaff emphasizes that these upgrades are long overdue and that more efforts are needed. In Agility’s Emerging Markets Logistics index, South Africa’s ranking improved slightly, indicating potential for growth in international logistics. However, the country must urgently increase its transshipment volumes to fully capitalize on its logistics potential. Source

Port of Cape Town harbour carrier update: TPT vs Sata

28/02/2025

Transnet has introduced a truck booking system at the Cape Town Container Terminal (CTCT), allowing transporters to access the terminal only 30 minutes before their confirmed slot. This move is in response to concerns about congestion, with transporters suggesting that restricting access to trucks without pre-allocated time slots could help avoid delays at the terminal. Upon arrival at the port, trucks will have their registration number and terminal booking verified by security personnel before being allowed entry. Transnet has stated that the pilot program will continue until full implementation in March, though there is some ambiguity about which entrance gates this system will apply to, whether the outer gates or the CTCT gates.

Transporters argue that the truck booking system has led to a chaotic situation, with congestion at the port hindering the timely access of compliant carriers to their allocated slots. Derick Ongansie, chair of the SA Transporters Alliance (Sata), claims that the current system has forced many long-standing operators out of business. In an October meeting with Transnet Port Terminals (TPT) executives, one transporter reported that up to 90 trucks were entering the port precinct, causing severe disruptions for carriers with valid bookings. Ongansie also noted that although the truck booking system has been problematic for years, TPT has resisted acknowledging flaws in the Navis system, which was intended to regulate truck arrivals and improve traffic flow.

TPT defended the truck booking system, stating that similar systems are used globally to create more predictable and efficient truck arrivals, helping terminals plan based on available equipment. The system has been adjusted over the past four years in collaboration with transporters to improve its effectiveness. However, despite these changes, some transporters feel that the issues with congestion persist, with one operator even questioning the value of attending meetings, given the lack of tangible improvements. TPT maintains its commitment to further engagement with transporters through regular meetings to address ongoing concerns. Source

Kenya and Tanzania vying for hub port status

25/02/2025

Port expansion efforts in Tanzania and Kenya are creating competition as both nations strive to establish themselves as regional hubs, crucial for integrating the region into global supply chains. Tanzania’s push has received a boost from the European Union, which is investing EUR 15 million in the Tanzania Trade and Transport Improvement Project, set to launch in 2025. This initiative aims to unlock the port’s potential, driving regional and global trade growth. Significant progress has already been made, with vessel waiting times reduced by 85%, from an average of 46 days in May 2024 to just seven days by September 2024. This improvement has led to shipping lines removing a $1,000 peak season charge due to delays, while container throughput reached 27,000 TEUs per month in 2024, surpassing the previous peak of 15,000 TEUs. Source

East and Gulf Coast Ports Avoid Chaos as Dockworkers Seal Landmark Labor Deal

26/02/2025

The International Longshoremen’s Association (ILA) has overwhelmingly ratified a historic six-year master contract with the United States Maritime Alliance (USMX), securing significant wage increases and protections against automation for workers across Atlantic and Gulf Coast ports. The agreement, effective through September 30, 2030, received nearly 99% approval from rank-and-file members and is seen as setting a new standard for dockworker unions globally. After intense negotiations, including a three-day coast-wide strike in October 2024, the contract was finalized on January 8, 2025. Key provisions of the contract include a record 62% wage increase, protections against automation, accelerated wage raises for new workers, enhanced contributions to the money purchase plan, and improvements to the MILA healthcare plan, with all benefits retroactive to October 1, 2024.

ILA President Harold Daggett praised the agreement, calling it “the greatest contract in ILA history” and credited President Donald Trump’s support as instrumental in securing the deal, particularly in opposing port automation. Trump, who met with ILA leadership in December 2024, publicly congratulated the dockworkers and expressed his opposition to rapid automation. While USMX maintains that port modernization and automation are essential for efficiency and growth, the ILA’s success in negotiating protections reflects a significant achievement for workers. The formal signing of the agreement is scheduled for March 11, 2025, marking the beginning of what both parties hope will be a productive partnership between the ILA and USMX. Source

Business calls for end to French port strikes, but unions plan more

27/02/2025

The Mouvement des Entreprises de France (MEDEF), a French industry body representing over 200,000 businesses, is calling for an end to the ongoing strikes at the country’s ports, which began with a one-day stoppage and a further 24-hour walkout planned for today. Unions, however, have announced an intensified program of industrial action for March, including a 72-hour strike from March 18-20, additional four-hour walkouts on various dates, and disruptions to overtime and one-off shifts. The dock workers are protesting against the proposed pension reforms, particularly the increase in the retirement age, and are demanding recognition of the challenging nature of their work. Despite French Prime Minister François Bayrou’s agreement to review the pension issue, there has been no indication that the government will make concessions to resolve the dispute.

The strikes are causing significant disruption to the supply chain and have a severe impact on the national economy, according to MEDEF. The business confederation estimates a 23% increase in transport costs and a 25% loss in sales this month due to the stoppages. MEDEF is calling for the creation of a public-private coordination unit to address the issue and resume port activities swiftly. The strikes, particularly affecting Le Havre and Marseille-Fos ports, are happening amid heightened tensions in the shipping market, exacerbated by other ongoing strikes in Antwerp and Rotterdam. One local source at Marseille-Fos stated that the stoppages have left businesses “stuck in the middle” and struggling to stay afloat amidst the chaos. Source

Truckers say cargo logjams at Nhava Sheva are testing supply chains

26/02/2025

Container hauliers serving terminals at India’s Nhava Sheva port (JNPA) continue to express concerns about long vehicle turn times and low productivity, which are causing significant disruptions. These issues appear to stem from a mismatch between ocean and landside capacity at the port, which, along with Mundra, handles around 60% of India’s containerized trade. Nhava Sheva has seen a 23% year-on-year increase in volume last month, driven by carriers’ expanding networks, larger ships, and exporters rushing to maximize shipments before the fiscal year ends on March 31. Additionally, sporadic vessel bunching, partly caused by Red Sea diversions, has further strained the port’s previously smooth operations.

Truckers primarily blame BMCT (PSA Mumbai), the newest concessionaire at Nhava Sheva, for the gate slowdowns, rejecting the claims that congestion has been resolved. The Nhava Sheva Container Operators’ Welfare Association, which represents truck owners, reported significant inconvenience caused by the delays, affecting both drivers and the broader trade community. PSA, however, attributed the congestion to fluctuating volumes across terminals rather than issues within a single terminal. The Singapore-based operator emphasized the need to manage surges in traffic to improve truck waiting times and highlighted that while they had added capacity to accommodate trade growth, congestion could still occur when trucks concentrated at one terminal.

The pressure at Nhava Sheva is compounded by factors such as a rise in transshipment handling, partly due to the Red Sea crisis, and the use of ultra-large container vessels by major carriers like Maersk. These larger ships often require more container exchanges per call, further straining the port’s capacity. Despite these challenges, PSA is preparing to open phase 2 of its development, which will add 2.4 million TEUs of capacity, helping to meet near-term cargo volume projections. However, continued landside pressure may pose challenges if volumes keep increasing, as efficient vehicle turnarounds remain critical to maintaining supply chain fluidity. Source

Port Klang congestion reduced by single-window system

27/02/2025

The introduction of the Malaysia Maritime Single Window (MMSW) at Port Klang earlier this month has significantly alleviated congestion at one of Asia’s major ports, which had struggled with volume spikes caused by disruptions in maritime traffic around the Red Sea. Before the system’s implementation on February 17, the port faced delays of up to 40 hours last June and around 10 hours in April, with some ships experiencing up to 20 hours of delay due to rerouted container vessels around the Cape of Good Hope. To address this, the Port Klang Authority (PKA) optimized operations by diverting ships between terminals and investing in new equipment, but the launch of the MMSW has made a dramatic impact. The system has reduced vessel processing times from up to five days to just a few hours, thanks to real-time data and improved transparency in service level agreements.

The MMSW has digitally transformed operations at Malaysia’s largest port, located on the Malacca Strait, one of the world’s busiest shipping lanes, handling 11,000 vessels annually. The Port Klang Authority has praised the shift from manual processes to a seamless digital platform, noting a significant improvement in efficiency and reduced clearance times. The system’s success at Port Klang has already contributed to Malaysia’s ports handling over 30 million TEUs in 2024, a 10% increase from the previous year. Kale Logistics Solutions, which introduced the MMSW, plans to expand the system in future phases to include more ports. Port Klang, aiming for 15 million TEUs in 2025, has seen early success that highlights the potential of digital collaboration to enhance port efficiency. Source

Greener shipping – ‘further work needed’, but all still to play for

24/02/2025

At last week’s International Maritime Organization (IMO) ISWG-GHG 18 meeting, little was decided, and much remains to be addressed at the upcoming 83rd edition of the Marine Environment Protection Committee (MEPC) in April. Approximately 66% of signatories to MARPOL Annex VI supported a flat-rate greenhouse gas (GHG) levy, including developing countries and small island developing states (SIDS), according to Dr. Annika Frosch from the UCL Energy Institute. However, despite this agreement on the necessity of a levy, opinions are divided on how the funds should be allocated. Some suggest creating a decarbonization research and development fund, while others, particularly developing countries, criticize this approach as a way for wealthier nations to benefit disproportionately from shipping revenues and divert funds that could address climate change impacts.

The debate continues over how the money raised from the GHG levy should be used. Many now propose that the funds should go to low-income countries, such as SIDS, which are disproportionately affected by climate change. Guy Platten, Secretary-General of the International Chamber of Shipping (ICS), expressed satisfaction with the progress made, despite differences on key issues. He emphasized the positive and cooperative spirit of the negotiations, though it is clear that many critical decisions still need to be made. Blánaid Sheeran, Policy Officer at Opportunity Green, noted that the discussions have left many key details unresolved, with the final decisions likely to be pushed to MEPC 83.

In addition to the GHG levy discussions, shipping lines have also called for greater clarity on biofuels, given their potential to either reduce or increase carbon emissions depending on the type used. Sheeran highlighted that biofuels are being critically examined from a broader perspective to ensure that the transition to alternative fuels does not limit long-term viable options. She emphasized the importance of addressing these issues carefully, as biofuels play a crucial role in achieving a sustainable transition for the shipping industry. The outcome of these discussions will likely shape future maritime environmental policies and the industry’s efforts to reduce its carbon footprint. Source

MSC switches bigger box ships to higher-paying trades in ‘landmark’ move

26/02/2025

MSC has moved almost all of its megamax vessels from Far East-to-North Europe services to the Far East-Med and Asia-West Africa trades to take advantage of rising spot rates, according to Alphaliner. This shift, seen as a “landmark development” for Asia-West Africa trades, has introduced larger vessels to a market that previously saw ships no larger than 16,600 TEU. MSC’s decision was driven by a desire to capitalize on high rates in the Asia-West Africa trade. Prior to the recent alliance changes, MSC’s largest ships were deployed on the 2M’s Lion/AE6 service, now replaced by a standalone Lion. However, MSC’s fleet of smaller 17 neo-panamaxes, ranging from 13,000 to 16,616 TEU, will now serve this route, with similar downsizing applied to its other Far East-North Europe services such as Albatross, Swan, and Britannia.

Alphaliner also noted that some of MSC’s 24,000+ TEU ships will be redeployed to the Asia-West Africa Express service, while the majority of its megamax fleet (19,200 to 24,300 TEU) will operate on three standalone Far East-Med loops. Services such as the Asia-West Med Jade, Dragon, and Far East-East Med Tiger services will see an increase in vessel size, with ships like the 23,782 TEU MSC Diletta joining the Africa Express service starting tomorrow. Alphaliner pointed out that MSC’s flexibility, as an independent carrier not bound by an alliance, allows it to quickly respond to shifts in demand and rates. However, these capacity adjustments may not be permanent, as MSC could easily reassign megamax vessels to other regions, such as Europe, the Middle East, or the transpacific, if market conditions change. Source

Carriers put on a brave face amid further decline in ocean spot rates

28/02/2025

Container spot freight rates on the major east-west trade routes continued to decline last week, with the sharpest falls occurring in the Asia-North America trades, a shift from the previous weeks where declines were mainly seen on the Asia-North Europe and Asia-Mediterranean routes. Drewry’s World Container Index reported that the Shanghai-Los Angeles route saw an 11% drop, bringing the spot rate down to $3,477 per 40ft, while the Shanghai-New York route dropped 10%, ending at $4,593 per 40ft. In contrast, the Shanghai-Rotterdam and Shanghai-Genoa routes saw much smaller declines, providing some optimism that the downward trend may have reached a floor on those trades. Despite the declines, deep-sea carriers continued to offer competitive rates, with Maersk reportedly offering the lowest at $2,000 per 40ft on China-UK shipments, signaling its aggressive strategy to secure volumes as it transitions its vessels into the new Gemini Cooperation.

Liner analysts predict that spot rates will continue to soften due to the growing supply of new vessel capacity, with vessel supply growth expected to outpace demand. MSI analysts noted that a reduction in front-loading and a return to Suez transits would contribute to this trend, with freight rates likely to drop substantially over 2025. While some carriers, such as ONE, Hapag-Lloyd, and HMM, are offering higher rates of around $4,100 per 40ft for China-UK shipments, Maersk and Yang Ming are offering lower rates, signaling the ongoing downward pressure on prices. Despite the declines, carriers remain optimistic, with some asserting that they still have control over the market, although many customers expect rates to continue falling. As one forwarder noted, there is growing uncertainty about how long this trend can be avoided. Source

SOURCES & REFERENCES

SACO CFR | Hapag Lloyd | Maersk | MSC | Transnet | The LoadStar Publications | gCaptain.com | Shipco Transport | Splash247.com | Freightnews | Seatrade Maritime News | Automotive Logistics | Lloyds List 

Again, the Inter-Sped team is here for all freight and Logistics needs – We will always do our best for you and keep you posted on your shipments progress on an individual shipment level.

Thank you for choosing Inter-Sped. 

JJ & The Inter-Sped Team