Maersk

Global Schedule Reliability Rises Again

Jun 2, 2025 | , , , , , , , , , , , ,

Container shipping schedule reliability improved for the second consecutive month in April 2025, reaching its highest level since November 2023. According to the latest industry data, 59% of vessel arrivals were on time in April, up from 58% in March and 6% higher than April 2024.

While still far from pre-pandemic levels, the trend reflects a clear focus among carriers on restoring service integrity.

The standout performer remains the Gemini Cooperation, formed by Maersk and Hapag-Lloyd, which continued to dominate on-time performance metrics across key global trades. In April, Maersk posted the highest reliability among the top 13 carriers at 73%, followed closely by Hapag-Lloyd at 72%. MSC placed third with 61%.

Gemini achieved an average of 91% on-time reliability across all port calls and 87% when measured by final destination arrivals, well above its 90% performance target on several major lanes, including Asia–US West Coast and US East Coast–Europe services. On the Asia–North America West Coast route, Gemini achieved a perfect 100% score. Meanwhile, MSC led on the Asia–North America East Coast trade, recording 92%.

At the other end of the spectrum, the Premier Alliance and Ocean Alliance continued to struggle. Premier averaged 53% reliability, while Ocean Alliance fell to 51%. Among individual members, Evergreen recorded the lowest schedule performance at 47%.

Market impact of improving reliability
Improving schedule reliability is more than just operational, it’s strategic. Consistent service performance enables shippers to reduce safety stocks and better manage inventory, improving overall supply chain efficiency. Simply, reliability allows companies to remove weeks of buffer stock from their planning.

In contrast, low-reliability carriers may find themselves at a competitive disadvantage, particularly if freight buyers begin to prioritise predictability over price alone in an increasingly complex market environment.

Rates hold firm as carriers manage capacity
As we report in this week’s newsletter average global spot freight rates have also shown moderate upward movement. The Drewry World Container Index reported a 2% rise in global average rates in mid-May, bringing the benchmark to a level that is 60% above the pre-pandemic average, but still far below the 2021–22 peak.

Shanghai–Genoa and Shanghai–New York spot rates both increased by 4% week-on-week, while Shanghai–Los Angeles edged up 2%. Backhaul rates out of Europe remained stable, indicating strong front-haul demand and tight outbound capacity from Asia.

The rate resilience is partly attributed to carriers’ continued capacity discipline and their renewed focus on reliability. As cargo volumes from Asia increase, partly driven by front-loading ahead of potential tariff changes, shippers are placing greater value on stable schedules and transit times.

With the full rollout of the new alliances not expected until July, further improvements in reliability may still lie ahead. For now, Gemini’s strong performance is setting a new service benchmark, while the broader market appears to be shifting in favour of predictability and performance over sheer price competition.

With carrier reliability still fluctuating across trade lanes, dependable sea freight solutions requires more than just a booking, it requires real-time insight and agility. Metro’s MVT platform continuously tracks shipping line KPIs, comparing actual performance across alliances and enabling us to dynamically adjust your supply chain around real arrival data, not published schedules.

Combined with our expert sea freight team and strategic carrier partnerships, this data-driven approach helps reduce delays, optimise inventory planning, and protect your service levels.

Partner with Metro for smarter, more reliable ocean freight, powered by MVT and built around your business. EMAIL Andrew Smith, managing director, today.

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Court Ruling Challenges Trump’s Trade Strategy Amid Global Uncertainty

May 29, 2025 | , , , , , , , , , , , , , , , , , , , , , ,

A U.S. federal court has ruled that President Donald Trump’s sweeping “Liberation Day” tariffs are illegal — delivering what may prove to be a major blow to his trade policy agenda, or simply a temporary setback.

On May 28, 2025, the United States Court of International Trade determined that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad tariffs on imports from numerous countries. The court found that the administration’s justification did not meet the IEEPA’s requirement of an “unusual and extraordinary threat,” rendering the tariffs an improper use of executive power.

The three-judge panel unanimously held that the IEEPA does not authorise the president to unilaterally impose such sweeping tariffs, stressing the need for a clear mandate from Congress when it comes to major economic decisions. As a result, the court issued a permanent injunction against the tariffs and ordered U.S. Customs and Border Protection to stop collecting them.

The ruling requires that the tariffs be halted within 10 days. The Trump administration has announced plans to appeal, which could take the case to the U.S. Court of Appeals for the Federal Circuit.

Implications for Trade Policy
This decision directly challenges a key pillar of Trump’s trade strategy, which has leaned heavily on tariffs to address trade imbalances and shield U.S. industries. It may also influence ongoing negotiations with key partners such as the European Union and the United Kingdom by casting doubt on the legal basis for unilateral U.S. tariff actions.

While the court invalidated the sweeping global tariffs introduced on April 2 — including the baseline 10% levy and “reciprocal” duties — it did not strike down the administration’s sector-specific tariffs on imports like steel and cars, which remain in force.

The ruling is expected to embolden critics of Trump’s tariff policy across corporate America, foreign capitals, and Capitol Hill. It also comes at a sensitive moment for the administration, which is working to finalise new trade deals after suspending many of the planned tariff hikes.

The legal setback introduces fresh uncertainty into an already volatile global trade landscape — and may ultimately reshape how domestic and international actors engage with U.S. trade policy in the months ahead.

Stay informed as the US tariff and trade landscape evolves. Go to our home page to subscribe to our eBulletin updates for expert insight on the rulings, appeals, and what it all means for your supply chain strategy.

US graph

Tariffs, Complexity and Opportunity

May 27, 2025 | , , , , , , , , , , , , ,

As the United States recalibrates its tariff landscape, importers (and DDP exporters) are navigating a rapidly shifting environment. With Section 301 tariffs on Chinese goods still firmly in place, it has never been more critical to understand which tariffs apply and how to calculate them.

In mid-May 2025, the US and China agreed to a temporary 90-day pause, reducing some of the steepest retaliatory tariffs introduced earlier this year. As a result the “Liberation Day” tariffs of 145% were reduced to 30% for a limited set of goods.

However, the vast majority of Section 301 tariffs of >20%, imposed since the original US-China trade war in 2018, remain fully in effect. These apply to thousands of products, from electronics and machinery to apparel, plastics, and consumer goods.

Even with the temporary relief, many Chinese imports still face aggregate duty rates between 25% and 45%, and in some categories even higher, depending on classification.

Meanwhile, other major trading blocs continue to face pressure:

  • United Kingdom: 10% for automotives, capped at 100,000 vehicles annually 10% blanket tariff for most other goods including consumer goods, machinery, and textiles
  • Canada & Mexico: A 25% duty now applies to most goods, with energy imports from Canada also hit by an additional 10% levy.
  • European Union: Proposed 50% tariffs have been postponed until 9 July, but the delay only adds to uncertainty.
  • Rest of World: Many categories of industrial and consumer goods continue to carry elevated Most-Favoured Nation (MFN) rates, while countries without a preferential trade agreement with the US face duties ranging from 5% to 25%, depending on classification.

This fragmented tariff regime has introduced significant compliance risk, particularly for shippers working across multiple geographies.

Compliance is Complex—and Getting it Wrong is Costly
With tariffs now applied differently by origin, product type, and trade agreement status, accuracy in classification and valuation is critical. Errors can lead to underpayment (and penalties), overpayment (and lost margin), or shipment delays.

Key areas of risk include:

  • HS Codes (Harmonised System codes): A single digit variation can shift a product from a 5% duty rate to 25%. For example, a screw compressor may fall under HS code 8414.80.16 (duty-free) or 8414.80.90 (5.0%).
  • Country of Origin Rules: Manufacturing in multiple countries complicates origin determination. A shirt assembled in Vietnam from Chinese fabric may not qualify for any duty relief under existing agreements.
  • Valuation: Freight, insurance and packaging must be properly declared when calculating the dutiable value. Missteps here lead to unexpected cost and audit risk.

For exporters selling DDP, the challenge is even greater: you’re liable for these duties, meaning you absorb the cost of any errors. In today’s environment, even small misclassifications can compound across shipments, eroding profitability.

Turning Tariffs into Opportunity
While challenging, this tariff environment also presents strategic opportunities for those who are prepared:

  • Supply Chain Diversification: Shifting sourcing to countries with lower US duty rates can generate meaningful savings. Even partial shifts can de-risk exposure.
  • Tariff Engineering: By adjusting product configuration or final assembly location, shippers can legally change a product’s classification or origin. For instance, repackaging or minor reassembly in a third country may reduce duty rates.
  • Bonded Warehousing & FTZs: Storing goods in US Foreign Trade Zones or bonded facilities can defer, reduce, or eliminate duty payments, especially when re-exporting or assembling in the US before domestic release.

Amid rising costs and intense global competition, such strategies can help turn tariff exposure into a competitive advantage.

We combine trade compliance expertise, global freight execution, and strategic planning to help you manage tariff risk and unlock supply chain opportunities.

  • Expert customs brokerage teams based in the US
  • Product classification and duty calculations
  • Duty mitigation strategies, including bonded warehousing
  • Trade lane analysis and landed cost modelling
  • Supply chain rerouting and logistics reconfiguration

EMAIL Andrew Smith, Managing Director, to learn how Metro help you stay compliant, minimise supply chain risk, and unlock opportunities.

Indian port congestion looms

Cargo Rush Sparks Port Congestion and Equipment Shortages

May 26, 2025 | , , , , , , , , , , , , , , ,

The recent 90-day pause on US tariffs on Chinese imports has sparked a dramatic surge in demand, as American importers scramble to front-load shipments ahead of the 14 August deadline. The demand spike is now placing considerable pressure on supply chains across Asia and Europe, threatening to disrupt global freight flows into the traditional peak season.

Freight bookings from China to the US rocketed 300% in just one week, marking the highest volume levels of the year so far, as US importers use the temporary reprieve to push through previously delayed shipments.

While the tariff rate remains high at 30%, it is significantly lower than the 145% rates imposed earlier in the spring. Importers are moving quickly to take advantage of this limited window of cost certainty, but the consequences are already being felt far beyond China’s borders.

With ships now flooding back into Chinese ports, congestion has rapidly intensified:

  • Shanghai and Qingdao are experiencing berth waiting times of 24–72 hours.
  • Ningbo reports delays of 24–36 hours, while the congestion there is now worsening due to diverted volumes.
  • Busan is reporting 72-hour waits at the PNIT Terminal.
  • Singapore and Yokohama are also affected, with waiting times up to 36 and 24 hours, respectively.

Carriers are reporting widespread bunching and missed berths, forcing some vessels to skip port calls entirely. Simultaneously, container availability is tightening, especially in Shanghai and Ningbo, where carriers have begun rationing equipment based on rate levels and space commitments. Maersk and HMM are among those limiting container release in an attempt to balance capacity with available slots.

Further down the line, ports in southern China, Southeast Asia, and even intra-Asia trades are also reporting backlogs. Shenzhen, Hong Kong, Ho Chi Minh City, and Port Klang have all seen yard utilisation rise and service delays build.

Strain Spreads to Europe as Container Flows Disrupt
The congestion is not limited to Asia. As carriers reposition vessels and adjust service rotations to meet surging demand on eastbound transpacific routes, European ports are beginning to feel the knock-on effects.

In northern Europe:

  • Hamburg is facing 5–6½ days of berth delays,
  • Southampton and London Gateway are seeing 3-day waits,
  • Antwerp is experiencing severe disruption with delays extending to 15½ days,
  • Piraeus and Tangiers are also impacted, each facing waits of up to 4 and 3 days, respectively.

Labour shortages, reduced barge capacity on the Rhine, and tight schedules are compounding these delays. Meanwhile, rerouted vessels from Asia–Europe services are creating bunching at key transhipment hubs such as Bremerhaven and Hamburg, which in turn serve Scandinavia and the Baltic.

Equipment Shortages and Capacity Gaps Ahead of Peak Season
Container availability is expected to worsen in the coming weeks. With vessels already departing China at high utilisation levels, the return of empty containers and the repositioning of ships to Asia may not keep pace with demand.

If previously produced goods held in bonded warehouses are added to this surge in volumes during May, demand could increase by nearly 50%. A delay to June would ease the burden, but it could still be over 15%, which still represents a steep challenge ahead of the summer peak.

This front-loading of cargo to the US may lead to a sharp, compressed peak season starting now and stretching into mid-July, followed by potential equipment shortages and service volatility in August and beyond.

We are closely monitoring port performance, vessel schedules, and rate volatility across all major trade lanes, to support customers with:

  • Priority bookings and space management on transpacific and key routes
  • Equipment selection and container allocation strategies
  • Alternative routing and scheduling options to avoid bottlenecks
  • Global shipment visibility to SKU

EMAIL Managing Director Andrew Smith to discuss current conditions, risk mitigation, and booking options tailored to your business priorities.

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