COSCO appoint Metro partner

US Port Fees on Chinese-Built Vessels

May 20, 2025 | , , , , , , , , , , , , , ,

The United States Trade Representative (USTR) has finalised a revised plan to impose port fees on Chinese-built containerships calling at US ports.

This follows the reintroduction of the SHIPS for America Act, part of President Donald Trump’s broader push to revive the US shipbuilding industry and reduce reliance on Chinese maritime infrastructure.

While significantly less disruptive than the original February proposal, which threatened to add up to $1.5 million per port call and cost the industry $24 billion, the revised version will still increase shipping costs by approximately $1 million per voyage. These added costs may have ripple effects across global supply chains.

What’s Changing – and When?

USTR Port Fee

  • Start Date: Mid-October 2025
  • Escalation: Costs will increase every 180 days over a three-year period
  • Estimated Additional Costs:
    • Chinese operators (e.g. COSCO/OOCL): USD $250–$1,600 per TEU
    • Non-Chinese operators using China-built vessels: USD $100–$400 per TEU

Crucially, carriers will only be charged once per US rotation, not at every port call. Exemptions apply for:

  • Vessels under 4,000 TEUs
  • Voyages under 2,000 nautical miles
  • China-built vessels owned by US-based carriers

Carrier Reactions and Supply Chain Impacts
Most non-Chinese carriers are expected to redeploy tonnage to avoid the fees, shifting Chinese-built vessels away from US trades in favour of non-Chinese built ships. Some may elect to use transhipment hubs in the Caribbean to bypass direct calls to US ports.

Chinese carriers like COSCO and OOCL will be hardest hit. With limited ability to avoid the charges, these carriers may lean more heavily on alliance partners like CMA CGM or Evergreen, potentially distorting market dynamics and reducing competition on some transpacific routes.

Despite initial fears, widespread surcharges are currently seen as unlikely. Market competition and alternative capacity could prevent many carriers from passing costs directly onto shippers, tthough selective route-specific or carrier-specific fees may still emerge.

SHIPS for America Act
This proposed legislation, while not yet passed, aims to further penalise Chinese-built, -owned or -registered vessels. It also opens the door for other “countries of concern” to be added in future. No cost estimates have been released, but shippers should remain alert to potential follow-on impacts.

The evolving policy landscape introduces fresh uncertainty for importers and exporters, especially those with supply chains linked to Asia–US routes.

Metro is actively monitoring developments and engaging with carriers and industry bodies to stay ahead of the real-time implications. Our goal is to help customers navigate any changes smoothly and make informed decisions.

If your business could be affected by these measures, or you simply want to future-proof your supply chain with revised routing strategies and updated landed cost assessments, please EMAIL our Managing Director, Andrew Smith.

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March Airfreight Surge Sets Stage for Further Growth as US-China Trade Tensions Ease

May 13, 2025 | , , , , , , , , , , , , , , ,

Airfreight markets posted a record performance in March, with particularly strong activity on Asia, US, Europe and UK trade lanes. The surge, driven by shippers front-loading cargo ahead of anticipated US tariffs, has provided a benchmark for what could follow in the months ahead as recent tariff reductions between the US and China hint at a renewed spike in activity.

According to IATA, global demand measured in cargo tonne-kilometres rose by 4.4% year-on-year, with international cargo traffic increasing by 5.5%. Capacity, meanwhile, increased by a similar margin, helping to stabilise load factors despite the sudden surge in volumes. Asia-Pacific carriers led growth with a 9.6% rise in demand and an 11% increase in available capacity. North American airlines recorded a 9.5% increase in volumes, while European carriers posted a more moderate rise.

Asia-North America remained the largest and fastest-growing trade lane by market share, as exporters sought to avoid the sharp rise in tariffs. The Europe-North America route also experienced strong activity and was the busiest overall in March, underpinned by steady intra-European demand which grew by 2%.

The operating environment provided further stimulus, with world industrial output and global trade volumes expanding by just under 3%. Falling energy costs provided additional support, with jet fuel prices down for the ninth consecutive month. Inflation rates also stabilised across key markets, providing additional certainty for international shippers. China’s deflationary environment also showed signs of softening, with the rate improving to just below zero.

The result was a sharp escalation in demand from sectors that rely on rapid supply chains and cannot risk ocean freight delays. Electronics, high fashion, automotive and perishable goods were among the leading commodities contributing to the increased volumes.

The extraordinary March performance may not remain an isolated event. The recent temporary US-China tariff reduction has the potential to trigger another wave of increased airfreight activity.

While the extent of future growth will depend on how negotiations between the world’s two largest economies unfold, the easing of tariffs has already bolstered market sentiment.

However, market analysts note that after the March peak, demand may return to more typical seasonal levels in the short term, particularly as capacity has increased by over 6% on international routes, offering more space for shippers. Yet, the fundamental reliance on airfreight for high-value and time-critical shipments between Asia, the US, Europe and the UK remains unchanged.

Should trade relations between the US and China continue to thaw, the market could be poised for another significant uplift in volumes. The key will be whether the current political stability translates into sustained confidence among exporters and freight forwarders across these critical trade lanes.

With airfreight demand surging and tariffs in flux, now is the time to optimise your supply chain strategy. EMAIL Elliot Carlile, Operations Director, to explore how we can help you secure space and streamline your international shipments.

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Trump’s Red Sea Gambit

May 13, 2025 | , , , , , , , , , , , , , , , , , ,

A dramatic shift in the Red Sea shipping crisis may be underway following US President Donald Trump’s announcement that Houthi militants have agreed to halt their campaign against commercial vessels.

His declaration has sparked hopes of restored freedom of navigation through one of the world’s most vital maritime corridors. However, conflicting signals from the Houthis and persistent security concerns leave the industry navigating uncertain waters.

Trump’s comments, made ahead of a high-profile meeting with Canadian Prime Minister Mark Carney on May 6, suggested that after months of military escalation, a breakthrough had been reached. The President claimed that the Houthis had “capitulated” and would cease missile and drone strikes on commercial shipping. He pledged that US airstrikes on Yemeni targets would also end in response.

Omani diplomatic sources have echoed the ceasefire narrative, pointing to coordinated discussions that purportedly yielded a de-escalation agreement and a commitment to non-aggression on both sides.

Yet, the Houthis have swiftly rejected Trump’s portrayal, asserting that no formal truce exists. According to Houthi representatives, the group’s military stance remains unchanged, particularly in relation to Israel, and any pause in attacks was a tactical decision rather than the result of concessions.

This ambiguity undermines confidence among major container lines, many of which continue to avoid Red Sea routes due to crew safety concerns and inflated insurance premiums.

If hostilities genuinely subside, container carriers could begin rerouting vessels back through the Suez Canal. Around 10% of global container capacity has been absorbed by the longer, costlier voyages around southern Africa. A return to Suez would free up this latent capacity, potentially exacerbating overcapacity issues already pressuring the industry. With the container vessel order book standing at about a quarter of the current fleet size, the market faces mounting risk of supply-demand imbalance.

Freight rates, which surged earlier due to the Red Sea crisis, could spike again if carriers resume shorter transits en masse, before softening once schedules settle back down. And while rate increases and extended lead times could finally see some relief the resulting supply-side glut may create new headaches for the container shipping lines.

Port activity along the Red Sea remains subdued, with volumes reportedly down by around half compared to last year. A reliable and lasting resolution could rejuvenate regional trade flows, benefiting not only global carriers but also Gulf-based shippers and transhipment hubs that have been cut off from direct east-west routes.

For now, the shipping industry remains caught between political theatre and on-the-ground reality. Whether Trump’s announcement marks the dawn of stability or another premature claim depends on actions in the Bab al-Mandab, not words in Washington.

The situation in the Red Sea remains unpredictable and liable to change. If your business relies on consistent global shipping operations, this is the perfect time to review your contingency plans and explore flexible alternatives. EMAIL Andy Smith, Managing Director, to learn how we maintain stability and keep supply chains running smoothly, whatever the challenge.

Hidden threat to exporters

Northern Europe’s Ports Struggle with Congestion Amid Network Shifts

Apr 29, 2025 | , , , , , , , , , , , , ,

Ports across Northern Europe are grappling with rising congestion, causing widespread delays and operational disruption. A confluence of industrial action, infrastructure strain, inland transport bottlenecks and the rollout of new shipping alliances is overwhelming terminals, with no immediate relief in sight.

Container volumes have surged at key gateways such as Antwerp-Bruges, Bremerhaven, Rotterdam, and Felixstowe, with waiting times and yard occupancy levels climbing.

Antwerp is experiencing yard utilisation at 96%, with reefer plugs over capacity at 112%.

Nearly half the vessels arriving are waiting for berths, and 52 more containerships are en route. Berthing delays are being exacerbated by residual backlogs following strikes at the end of March, and the port has reduced its export delivery window to five days to help ease pressure.

In Germany, Bremerhaven is seeing similar strain, with nearly 30% of vessels waiting for berths and inland rail disruptions further complicating the situation. Landslides and line closures near Hannover forced lengthy rail detours, impacting traffic to and from major ports including Hamburg, Rotterdam and Duisburg. These rail delays are causing a cascading effect across Northern Europe’s inland logistics.

The Netherlands is also under pressure, with unresolved automation disputes in Rotterdam contributing to labour-related delays. In France, strikes at Le Havre have eased for now during ongoing negotiations, but the risk of renewed action remains high.

The UK is not immune. Felixstowe, London Gateway, and Southampton are all dealing with congestion as vessel diversions from continental ports push volumes higher.

Multiple factors are compounding the problem. The phasing in and out of new alliance schedules—particularly by Maersk, MSC, and Hapag-Lloyd—is disrupting established flows and increasing port calls. Simultaneously, low water levels on the Rhine are limiting barge capacity, shifting more freight to already stretched rail and road networks. Labour shortages, especially during public holidays, have further constrained operations.

With delays mounting, carriers are urging shippers to collect containers promptly and to avoid early delivery of exports. Some terminals, like PSA Antwerp, have shortened delivery windows to reduce yard congestion. Carriers are implementing contingency plans on a vessel-by-vessel basis and may introduce congestion surcharges to offset rising operational costs.

Industry forecasts suggest that congestion could persist for another three to four months, until alliance network changes bed in and volumes normalise. In the meantime, importers and exporters should prepare for longer lead times, increased costs, and fluctuating capacity at Europe’s busiest container ports.

With congestion disrupting major European gateways, our flexible contingency plans are keeping cargo moving, rerouting through alternative ports and opening up new entry points.

To reduce delays and protect your supply chain, share your shipping forecasts early so we can act fast and proactively manage risks.

For expert advice and tailored solutions, EMAIL Andrew Smith, Managing Director, today.

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