Shipping in the Red Sea remains uncertain, despite a slight rise in traffic. Security concerns are still keeping most vessels on longer routes around Africa. Although no merchant ships have been attacked this year, threats persist as Yemen’s Houthis warn they may resume attacks on vessels should the ceasefire between Israel and Hamas collapse. The
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
European ports are currently grappling with significant delays due to record container volumes arriving from China, extreme winter weather, and ongoing labor challenges. In December, exports from China to North Europe recorded a 17.6% increase year-over-year, according to Container Trade Statistics (CTS) data. The influx of container arrivals, which started to reach European ports in
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 U.S. less-than-truckload (LTL) freight classification system is undergoing the most significant overhaul of its nearly 90-year-old rating system, and shippers are concerned about potential cost increases in their LTL pricing. The National Motor Freight Traffic Association (NMFTA), a nonprofit trade organization responsible for managing the National Motor Freight Classification (NMFC), explains that the changes
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
The restructuring of the ocean carrier alliances in February has brought about capacity fluctuations in the Trans-Pacific trade, according to maritime intelligence firm eeSea. Although functional capacity was 20% higher year-over-year, it remained 8% lower compared to January. eeSea indicated that despite an increase in the number of Eastbound Trans-Pacific services from four to 53 in February,
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
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