GLOBAL DEMAND
Despite a modest 2% YTD rise in global container volumes, February’s sharp 13.6% drop, the steepest since 2022, along with new U.S. tariffs and rising trade tensions, suggests the downturn goes beyond seasonal factors and signals broader weakness in global trade. Far East–North America volumes rose 6% YTD but fell 25% in February, while Far East–Europe traffic grew 7% YTD yet plunged 38% in its first year-over-year decline in two years.
PORT CONGESTION
As of mid-April, global containership congestion impacts 3.04M TEUs, or 9.6% of the fleet. North Asia accounts for 41% of the backlog, mainly due to delays at Chinese ports like Shanghai/Ningbo. In Europe, ports such as Antwerp and Mediterranean hubs like Valencia face significant delays. Moderate congestion is also seen in the Americas and Southeast Asia.
SCHEDULE RELIABILITY
In February 2025, global schedule reliability rose to 54.9%, its highest since May 2024, with Maersk leading major carriers at 60.2% reliability and PIL lagging at 43.9%, while the Gemini Cooperation outperformed all alliances in Q1 2025 with 86% on-time arrivals, although their reliability dropped to 76% by week 16 amid growing backhaul rollover issues and feeder network congestion in Asian hubs like Pelepas and Singapore.
CAPACITY
As of April 14, 2025, the global container fleet reached 31.9 million TEUs (up 9.0% YoY), with strong charter demand, especially for mid-sized vessels, driven by a shift toward operational flexibility and environmental compliance.
However, trade uncertainty has triggered a surge in blank sailings (83 cancellations from mid-April to mid-May), particularly on Transpacific routes, as carriers adjust services, drop underutilized Chinese ports, and delay 2025 contract negotiations.
RATES LEVELS
Despite trade disruptions, global freight rates edged up, with Drewry’s WCI rising 3% and the SCFI stabilizing after a steep Q1 decline. Asia-Europe lanes saw solid gains, North Europe up 1.5% to $1,356/TEU and Mediterranean up 5.7% to $2,144/TEU, on stronger demand and mid-April rate hikes, while Transpacific rates slid, with U.S. West Coast down 4.8% to $2,202/FEU amid falling Chinese exports and tariff-related uncertainty.
BUNKER AND SUSTAINABILITY
Over the past week, bunker fuel prices dropped sharply (around 9–11%) for traditional marine fuels (IFO380 and VLSFO) in Singapore and Rotterdam, driven largely by macroeconomic factors. However, the premium for cleaner VLSFO over IFO380 remained stable, while LNG bunker fuel became notably pricier compared to oil-based alternatives, reversing the cost advantage it previously enjoyed.