John S. James Co.’s Post

📦 Container Market Insights for 2025   The container trading landscape in 2025 is marked by elevated secondhand container prices due to geopolitical tensions, trade wars, and tariff threats. These factors are driving up asset costs and breakeven leasing rates, impacting profitability. Container owners need agile leasing strategies and niche trades to stay profitable, while users must evaluate SOC vs. COC operations. The U.S. market anticipates an influx of used containers from China, influenced by lower taxation on used units. Geopolitical tensions and compliance requirements add complexity to container trading. The Lunar New Year will cause a temporary slowdown in container activity in the APAC region. U.S. import volumes rebounded in 2024, with significant growth at West Coast ports and the Gulf Coast. The U.S. manufacturing sector faces mixed economic signals, with strong backlogs but declining new orders. Upcoming labor strikes and tariff risks could sustain elevated container and freight rates into early 2025.   At John S. James Co., we understand the complexities of the container market and the challenges posed by geopolitical tensions and fluctuating prices. Our expertise in U.S.-Mexico trade and the UMSCA agreement positions us to provide strategic insights and cost-effective solutions for your shipping needs. Whether you're navigating the influx of used containers or dealing with compliance requirements, our team is here to help you stay competitive. Visit johnsjames.com to learn more about our services and how we can support your business.   #ContainerMarket #TradeInsights #ShippingIndustry #USMexicoTrade #FreightForwarding #CustomsBroker #JohnSJamesCo #UMSCA #SupplyChain #Logistics #Manufacturing #GlobalTrade #ContainerLeasing #Geopolitics #LunarNewYear #ImportExport #Friday #Weekend

📢 Booming intra-Asia trade pushes container traffic to new monthly record In May, global container traffic reached a new monthly peak, driven mainly by a substantial increase in intra-Asia trade according to Container Trade Statistics (CTS) data. Intra-Asia volumes grew by 14.4% year on year to over 4.5 million teu. The Far East-North America trade saw a 5.9% increase, totaling over 2 million teu, while Far East-Europe trades grew by 2.9% to over 1.5 million teu. Spot rate hikes on transpacific and Asia-Europe trades are reflected in the CTS price index, with significant growth in the Far East-North America and Far East-Europe indices. Contract rates are being influenced by carrier and shipper negotiations, with shifts in contract duration and renewal timing. The impact of Houthi attacks on Red Sea shipping has also altered trade dynamics. Secondary trades, such as Far East-Middle East/India, Far East-Latin America, and Far East-Southern Africa, have experienced spikes in demand and prices, with substantial growth in volumes and price indices across these routes. #containershipping #intra-Asia #logistics https://lnkd.in/dNVpPTeP

Fresh evidence that the strong July and August container volumes represented an early peak season for the transpacific and Asia-Europe trade emerged this morning, with Container Trade Statistics’ (CTS) September data showing month-on-month declines in almost every trade. Globally, transported container volumes fell 5.9% compared with August, with the sharpest drops seen on the Far East-Europe trade, which dropped 13.5% month on month, to just over 1.4m teu shipped. Similarly, the transpacific eastbound trade saw volumes contract 9.1%, to just under 2.1m teu.

New data from Container Trade Statistics (CTS) shows global container traffic in May hit a new monthly record, largely propelled by a double-digit year-on-year increase in the vast intra-Asia trade. According to CTS trade data for May, which counts all loaded containers shipped on the world’s shipping lanes, intra-Asia volumes grew 14.4 % year on year, to reach just over 4.5m teu. https://lnkd.in/eAVSXSqw

What other events are taking place in the Container Shipping industry? Cooling Demand Lowers Container Shipping Rates Despite Market Volatility. The container shipping market is currently seeing a drop in spot rates after a period of high prices driven by strong US demand. This demand was largely due to restocking ahead of expected tariff increases on Chinese goods. The Drewry World Container Index composite rate fell by 2.2% to $5,806 for a 40-foot unit, ending a 12-week increase. Despite this drop, rates are still about three times higher than they were in late 2023. Rates on major routes, such as Shanghai-to-Los Angeles and Shanghai-to-Rotterdam, have also decreased, with the former down by 4.9% to $6,934. Freightos data shows a 4% decline in Asia-US West Coast spot rates to $7,738 and a 2% drop to northern Europe to $8,420. Shipping lines have halted peak season surcharges and general rate increases at least through August. The drop in rates is due to cooling demand and the easing of supply chain disruptions, such as the Red Sea turmoil, which previously caused ships to divert around the Cape of Good Hope. However, rates remain high compared to historical norms, and the market could see more volatility depending on US-China trade relations and the situation in the Red Sea. Sources, the g. Captain, Xenata, Lloyd's List.

“Fresh evidence that the strong July and August container volumes represented an early peak season for the transpacific and Asia-Europe trade emerged this morning, with Container Trade Statistics’ (CTS) September data showing month-on-month declines in almost every trade. Globally, transported container volumes fell 5.9% compared with August, with the sharpest drops seen on the Far East-Europe trade, which dropped 13.5% month on month, to just over 1.4m teu shipped. Similarly, the transpacific eastbound trade saw volumes contract 9.1%, to just under 2.1m teu.” #transpac #containershipping

Booming intra-Asia trade pushes container traffic to new monthly record New data from Container Trade Statistics (CTS) shows global container traffic in May hit a new monthly record, largely propelled by a double-digit year-on-year increase in the vast intra-Asia trade. According to CTS trade data for May, which counts all loaded containers shipped on the world’s shipping lanes, intra-Asia volumes grew 14.4 % year on year, to reach just over 4.5m teu. And CTS’s Far East-North America component, including both US east and west coasts, showed a 5.9% year-on-year increase in volumes, to just over 2m teu for May, while the Far East-Europe trades witnessed a 2.9% year-on-year growth, to just over 1.5m teu. It also appears that the spot rates hikes seen on the transpacific and Asai-Europe trades are finally starting to bleed into the CTS price index, which covers both spot and contract rates – with much larger volumes carried under long-term contracts than positioned on spot. The CTS price index for Far East-North America grew 12.6% year on year, while on Far East-Europe it grew 15.3%, likely reflecting the impact of pricing in this year’s annual contracts between carrier and larger shippers – the contract season in the US traditionally runs from 1 May to 30 April, and it appears that European shippers are beginning to follow suit. Source: LFS Group Newsletter

Recently, the shipping industry has seen a wave of "price increases". According to the latest data released by the Shanghai Shipping Exchange on November 1, market freight rates continue to rise. The Shanghai Export Container Freight Index (SCFI) is not weak in the off-season, rising for two consecutive weeks to 2303.44 points, a weekly increase of 5.4%. Many shipping companies announced a new round of freight rate adjustment plans starting from November 15. Shipping companies such as MSC, CMA, HPL, MSK and others continued to adjust rates on some routes, including Europe, the Mediterranean, Africa, Australia and New Zealand. At present, geopolitical conflicts continue to ferment, and the pattern of container ships detouring remains, including the impact of the US election and the early shipment of cargo owners, which has provided some support to freight rates. Recently, shipping companies have restarted the price increase strategy to support freight rates, but how long this round of freight rate increases can last and how much they will increase remains to be observed. We would like to remind you that shipping companies have made many adjustments to freight rates recently and freight rates are volatile. If you have shipping plans, please make preparations early to avoid affecting shipments! 😃

Booming intra-Asia trade pushes container traffic to new monthly record New data from Container Trade Statistics (CTS) shows global container traffic in May hit a new monthly record, largely propelled by a double-digit year-on-year increase in the vast intra-Asia trade. According to CTS trade data for May, which counts all loaded containers shipped on the world’s shipping lanes, intra-Asia volumes grew 14.4 % year on year, to reach just over 4.5m teu. And CTS’s Far East-North America component, including both US east and west coasts, showed a 5.9% year-on-year increase in volumes, to just over 2m teu for May, while the Far East-Europe trades witnessed a 2.9% year-on-year growth, to just over 1.5m teu. It also appears that the spot rates hikes seen on the transpacific and Asai-Europe trades are finally starting to bleed into the CTS price index, which covers both spot and contract rates – with much larger volumes carried under long-term contracts than positioned on spot. The CTS price index for Far East-North America grew 12.6% year on year, while on Far East-Europe it grew 15.3%, likely reflecting the impact of pricing in this year’s annual contracts between carrier and larger shippers – the contract season in the US traditionally runs from 1 May to 30 April, and it appears that European shippers are beginning to follow suit. Source: LFS Group Newsletter

“Shippers assessed the impact of the Red Sea conflict on ocean supply chains and are not prepared to take the risk of repeating the chaos of the pandemic years.” ....noted that wanting to protect their supply chains “has come with a heavy price tag” for shippers.  Indeed, the record volumes in June coincided with spiralling average spot rates on trades from the Far East to North Europe: Xeneta data show spot rates increased by 166% between 30 April and 1 July. “Shippers that rushed imports may have spent far more than they wanted to, but they clearly felt it was a price worth paying to lower the level of risk in their supply chains later in the year,” But Xeneta noted that there had been signs that the record levels of demand for container shipping from China to North Europe may have peaked.  “There is a clear correlation between record-breaking volumes and spot market developments on the major trades from China to North America and North Europe,” Average spot rates from the Far East to North Europe have fallen by 1.6% since 31 July.  **** well, if they see the market easing by 1,6% after a steep increase of 166% before.**** that's not worth a headline, tmo