A new McKinsey Global Institute report examines how global trade is evolving based on four factors: trade intensity, geographic distance, geopolitical distance, and import concentration. The most significant ongoing shift in trade patterns is the decline in the average geopolitical distance of trade. Between 2017 and 2024, the measure dropped by -7%, indicating countries are
In 2024, the container market surpassed growth expectations, with volumes increasing by 6.2% and demand for teu-miles rising by 21%, according to Sea-Intelligence. This surge was largely due to the Red Sea crisis, which forced carriers to reroute vessels around Africa. Overall, global container volume increased by 10.7 million TEU year-over-year. While seven trade lanes recorded
The U.S. has temporarily reinstated the de minimis exemption for eligible products from China, allowing goods under $800 to be excused from customs filing costs and duties. The de minimis exemption had gone into effect on February 4 as part of a 10% tariff increase on goods from China. The exemption will remain in place until
The 10% tariff on all Chinese imports into the U.S. took effect on February 4, covering broad categories of goods, including consumer items like electronics, clothing, and shoes. Trade groups, including the American Association of Port Authorities (AAPA), have warned that the tariffs will slow supply chains and raise costs for U.S. consumers. China responded
Global shipping flows are bracing for disruption from tariffs that the U.S. said it will pass on goods from Mexico, Canada, and China. Imports from Canada and Mexico will face a 25% tariff, and goods from China will see a 10% tariff. Canada and Mexico announced they would be taking retaliatory measures, while China said
The U.S. suspension of the de minimis exemption on Chinese imports could sharply reduce airfreight demand and rates. Under the de minimis policy, small-value shipments under $800 are exempted from customs filing costs and duties and de minimis shipping became a critical tool in e-commerce supply chains. It also helped drive explosive growth for air
Trans-Pacific container rates have decreased as manufacturing and logistics operations in China wound down in anticipation of the Lunar New Year holiday, which began on January 29. In the week ending January 24, Asia-U.S. West Coast ocean rates fell by -7% per FEU, while the Asia-U.S. East Coast rates dropped -1% per FEU according to
As industries face mounting pressure from regulators, customers, and stakeholders to reduce environmental impact, organizations including Shipco Transport are stepping up to the challenge. According to Jakob Bluhme, Global CCO – Global Accounts, and Mette Karapetian, Vice President of Global Sustainability – ESG, Shipco has already taken essential steps to enhance its operations and continues
Sea-Intelligence’s year-end report covering 34 trade routes, showed containership schedule reliability remained relatively stable in 2024 amid disruptions brought on by the Red Sea crisis which forced vessel diversions, longer transits and reduced capacity. “Throughout 2024, schedule reliability has largely remained within the 50%-55% range. On a Y/Y level, schedule reliability was –3.0 percentage points lower
Yemen’s Houthis said they would allow international ships to transit the Red Sea if the ceasefire between Israel and Hamas holds. However, Israeli-owned and flagged vessels will remain targets, and the group further warned that if military actions by the U.S., UK, or Israel continued, it would resume attacks on U.S./UK vessels. Since November 2023,