Global container demand is expected to shrink primarily due to market uncertainty and trade tensions. Analyst Linerlytica has downgraded its global container demand growth projections to -1.1% for 2025.

The Asian market is already facing challenges following the announcement of import tariff measures by the U.S. Linerlytica has reported “significant” ocean cargo booking cancellations in Asia. The situation has stopped carriers from introducing rate increases on the Trans-Pacific freight rate. Consequently, talks for May shipping contracts are now uncertain.

“Increasingly, it is becoming clear that U.S. importers are adopting a wait-and-see attitude. To the degree their supply chain, and inventories allow them to halt and postpone shipments, this is what is happening now,” commented Lars Jensen, CEO of Vespucci Maritime. He suggested that additional last-minute blank sailings to the U.S. would be expected if the drop in bookings becomes more significant. Other liner experts have indicated that some ships may even go into temporary layup.

According to data from Linerlytica, China and Vietnam made up 51% of U.S. container imports in 2024. The analyst has warned that the U.S. faces a stagflation risk if tariffs are applied without any exemptions. Maritime consultancy Clarksons Research said that in the 2018-2019 U.S. – China trade war, container-tariffed trade accounted for 5% of global volumes, which shrank the global container trade by -0.5%.

Source: splash247.com