Maritime
April 1: Genco CEO Says Trump’s China Ship Fees Will Hammer Farmers, Not China – gCaptain
The largest U.S.-based dry bulk shipper said it is prepared to pass on costs to U.S. exporters or position its ships elsewhere if proposed U.S. fees on Chinese ships go into place.
Genco Shipping & Trading Ltd. has no ships built in the U.S. and does have “a lot of Chinese-built ships,” said CEO John Wobensmith.
“What we are doing is we will either position our ships elsewhere, there’s plenty of global trade,” Wobensmith said. He noted that 10% of revenue comes from the U.S., while 90% is from the rest of the world. “The other way to handle this is passing through to the end user.”
Wobensmith said that suitable U.S.-built ships for dry bulk goods “do not really exist.” While Genco is “very much in favour of building and revitalizing” U.S. shipbuilding, reviving shipyards and finding the workforce could take decades, he said.
April 7: Carriers Ramp Up Cancelled Sailings: Sign of Weaker Volumes or Tactic to Raise Rates? – Drewry
The number of cancelled sailings in March and April on the Transpacific, Transatlantic and Asia-North Europe & Med routes rose to 198 – far more than in the same period of 2024 (135). So, what is going on?
According to Drewry, the increase in the number of sailings that are now being cancelled is particularly high on the Asia-West Coast North America and the Transatlantic routes.
On the Asia-West Coast North America route, carriers normally cancel many sailings in February due to Chinese New Year, but reduce this practice in the following months. But this year, carriers continued to cancel more than 40 Asia-West Coast North America sailings a month in both March and in April.
In Drewry’s opinion, U.S. importers are hesitant to ship from Asia without knowing what new U.S. tariffs will hit them once they clear their goods on arrival in North America. Therefore, after strong volumes in January and February, which included some front-loading, carriers may have anticipated lower shipping volumes and a slowdown in YoY import growth and blanked sailings.
Another factor behind the ramp-up of cancelled sailings may be carrier tactics. While carriers and shippers are currently negotiating new service contracts starting from May 1, some carriers may have cancelled sailings to justify increases in contract rates in a market where capacity seems tight.
April 8: Trump Tariffs See Hundreds of Cancelled Container Bookings a Day from Asia – The Loadstar
Donald Trump’s tariff war has seen several Asian exporters cancelling container bookings, as U.S. cargo receivers are now wary of having to pay higher prices for the goods.
Taiwanese cardboard manufacturers with factories in Vietnam have reported having to cancel as many as 300 container-loads of goods, after the U.S. president slapped a 46% tariff on goods from the country.
Orders for May and beyond are also uncertain.
“Our customers asked if we can reduce our prices by 46% to cancel out the effects of the tariffs, but that’s impossible,” said one manufacturer.
With demand for their goods in doubt, these manufacturers are now operating their factories on reduced hours, having asked workers to work fewer days.
Forwarders say last-minute cancellations are around 300 containers a day, a five-fold increase from the pre-tariff period.
A Linerlytica report says the tariffs have dashed ocean carriers’ efforts to raise transpacific freight rates and left May contract negotiations in limbo.
April 8: U.S. Considers Adjusting Port Fee Plan for Chinese Vessels After Pushback, Sources Say – Yahoo Finance
President Donald Trump’s administration is considering softening its proposed fee on China-linked ships visiting U.S. ports after a flood of negative feedback from industries that said the idea could be economically devastating, according to six sources.
Among the changes under consideration are delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels, according to the six sources with knowledge of the matter.
Not all of the agency’s proposed multimillion-dollar fees for Chinese-built ships to dock at U.S. ports will be implemented and may not be cumulative, U.S. Trade Representative Jamieson Greer told a U.S. Senate Finance Committee hearing.
April 8: In Panama, Hegseth Pledges Cooperation to Counter Chinese “Influence” – The Maritime Executive
On April 8, U.S. Defense Secretary Pete Hegseth visited Panama to deliver a message: He pledged that the United States will “take back” the Panamanian government-operated canal from alleged Chinese influence.
Hegseth acknowledged that “China does not operate this canal,” and he pledged that China will not be allowed to “weaponize” it via infrastructure construction contracts.
“The United States of America will not allow communist China or any other country to threaten the canal’s operation or integrity,” Hegseth said. “The United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades.”
April 8: U.S. Withdraws from Critical IMO Climate Meeting, Threatens Retaliation Over Emissions Pricing – gCaptain
In a dramatic development at the International Maritime Organization’s (IMO) Marine Environment Protection Committee meeting in London, the Trump administration has announced the United States’ withdrawal from crucial maritime decarbonization negotiations taking place this week.
The U.S. government delivered a strongly worded message to IMO delegations, explicitly rejecting any measures that would impose fees on U.S. vessels based on greenhouse gas emissions or fuel choice. The administration further warned it would consider implementing reciprocal measures to offset any charges imposed on American ships.
The IMO’s Net-Zero Framework plans to modify MARPOL Annex VI by implementing both a marine fuel standard and emissions pricing system. Delegates at this week’s MEPC meeting are expected to finalize draft legal text for the measures.
The 2023 IMO GHG Strategy aims to achieve net-zero emissions from international shipping by 2050, with emissions peaking as soon as possible, while considering national circumstances and aligning with Paris Agreement temperature goals.
April 10: U.S. Executive Order: ‘Restoring America’s Maritime Dominance’ – The Loadstar
The U.S. government has pushed ahead with plans to revitalize its shipbuilding industry, after President Trump issued an executive order on April 9 entitled “Restoring America’s Maritime Dominance.”
“The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of government neglect, leading to the decline of a once strong industrial base, while simultaneously empowering our adversaries and eroding United States national security,” says the order.
“Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States.
“Rectifying these issues requires a comprehensive approach that includes securing consistent, predictable, and durable federal funding, making United States-flagged and -built vessels commercially competitive in international commerce, rebuilding America’s maritime manufacturing capabilities (the maritime industrial base), and expanding and strengthening the recruitment, training, and retention of the relevant workforce.”
April 14: Asian Exporters Scramble for Ships and Boxes to Beat 90-Day Tariff Pause – The Loadstar
With the 90-day moratorium on additional tariffs on all U.S. imports, except those from China, Asian manufacturers are rushing to secure sufficient containers and shipping slots. Some are hoping to get a year’s worth of stock out.
Chen Po-chia, chairman of the Taiwan Machine Tool & Accessory Builders’ Association (TMBA), said: “The initial 32% tariff that the U.S. imposed on imports from Taiwan is very unfavourable for us, and now [with the moratorium], the baseline 10% tariff gives us some breathing space. We hope we can ship out the goods quickly in the next few months, but it’s challenging to ensure there’re enough containers and ships at the port, and whether the goods can be loaded on board quickly.”
Several mainline operators have blanked transpacific sailings in response to an expected decline in volumes, although it remains to be seen if these could be reversed following the moratorium.
April 17: USTR Targets China’s Maritime Dominance with New Fee Structure and U.S.-Build Incentives – gCaptain
The U.S. Trade Representative (USTR) announced last week a comprehensive plan to challenge China’s dominance in maritime sectors and boost American shipbuilding through a targeted fee structure on Chinese vessels and operators.
The action plan will be implemented in two distinct phases.
The first phase begins with a 180-day grace period during which no fees will be charged. Afterwards, the USTR will implement fees on Chinese vessel owners and operators based on net tonnage of vessel capacity per U.S. voyage. The fee basis will be $50 per net ton, increasing annually over 3 years in $30 increments each year, to $140 per net ton in 2028. The fee will be assessed on the first point of entry per rotation/string, and is capped at five assessed fees per year.
The fees will also be applicable on a “non-discriminatory basis,” meaning fees will also apply to operators using Chinese-built vessels, regardless of the operator’s nationality, at a lower rate. For example, for non-Chinese operators of China-built ships, fees will be assessed at a rate of $18 per net ton or $120 per discharged container, whichever is higher. Rates will also increase incrementally by $5 per net ton until 2028, maxing out at $33 per net ton or $250 per container discharged. This fee will also be charged up to five times per year, per vessel.
Individual vessels will face a cap of five assessed fees per year. The fees will also be applied only at the first U.S. port of entry per rotation/string of calls.
Notably, the final action plan excludes previously proposed measures such as the $1 million to $1.5 million flat per port entry fees for operators with high shares of Chinese-built vessels and fees based on future orders of Chinese-built ships.
Phase two of the trade action will focus on the LNG sector.
April 21: Dramatic Surge of Blank Sailings Between Asia and North America West Coast – Maritime Magazine
According to a new report from Sea-Intelligence, container shipping lines have dramatically increased blank sailings on Transpacific routes as a result of the escalating trade conflict between the U.S. and China.
Sea-Intelligence indicated that the total blanked capacity for weeks 16 to 19 has spiked to 367,800 TEUs, versus just 60,000 TEUs three weeks prior. The Asia-North America West Coast trade lane has seen scheduled capacity decline by 12% compared with six weeks ago, while the Asia-North America East Coast route experienced an even steeper decline of 14%.
“The current political climate is extremely volatile and given that tariffs are being imposed and suspended on an almost daily basis, we assume that both the shipping lines and cargo owners are only adjusting their short-term supply chains for now and waiting for things to settle down before making longer-term network adjustments,” said Alan Murphy, CEO of Sea-Intelligence.
April 23: Transpac Container Service Closures Mount – The Loadstar
As spot freight rates on the transpacific trade continue to weaken, the number of service closures is beginning to mount.
Japanese carrier ONE on April 23 announced that “the resumption of the PS5 service, originally scheduled for May 2025, will be temporarily delayed until further notice.”
Meanwhile, Alphaliner reported that Hong Kong-listed carrier TS Lines had closed its standalone AWC2 service that connected the southern China ports of Nansha, Yantian, Shekou, and Xiamen with Los Angeles.
Falling spot rates were also reportedly behind Zim’s decision to close its ZX2 transpacific express service, which offered a 35-day Shanghai-Ningbo-Long Beach rotation, deploying five ships of 5,500 TEU capacity.
Air
April 21: Air Cargo Faces Potential $22-Billion Revenue Hit Over Three Years When China Tariff Exemption Ends – FreightWaves
U.S. plans to cancel tariff-free access for low-value parcel shipments from China and Hong Kong, coupled with a new 145% tariff rate on Chinese imports, could bleed more than $22 billion in revenue from the air cargo sector over three years and put thousands of online sellers with direct-to-consumer fulfillment models out of business, according to an e-commerce and logistics consulting firm.
Derek Lossing, the founder of Cirrus Global Advisors, has previously said the Trump administration’s recent trade actions against China would “decimate” air cargo out of China because demand for products on the Temu and Shein platforms would plummet. His Seattle-based consultancy has now quantified the downstream effects of the changes on the air cargo sector.
The Cirrus Global Advisors model shows the airfreight industry revenue could contract $22 billion if the White House maintains tariffs at 125% for a substantial period of time, based on assumptions about lower consumer demand, excess airline capacity and downward pressure on yields. The estimate was made before the U.S. clarified that the China tariff rate is actually 145%, to include a previous tariff, but it’s unclear if the higher rate would further drag down industry revenue.
Trucking
April 10: Tariffs and Economic Uncertainty Impacting Truckload Rates, Says Freight Index – Inside Logistics
AFS Logistics and TD Cowen have released the Q2 2025 edition of the TD Cowen/AFS Freight Index, showing continued pressure on truckload pricing, resilient less-than-truckload (LTL) rates and complex parcel pricing strategies by major carriers. The index, which provides predictive pricing insights for truckload, LTL and parcel markets, highlights how economic uncertainty and evolving trade policies are tempering any freight market recovery.
“Tariffs have become the topic du jour in boardrooms and beyond, and combining those policy changes with a cloudy macroeconomic picture is a recipe for the uncertainty and caution that characterize current market sentiment,” said Andy Dyer, CEO of AFS Logistics.
Truckload pricing in Q1 2025 rose slightly due to early inventory pulls, natural disasters and capacity corrections. However, more regional shipments drove down the total cost per shipment to its lowest level in more than three years.
The index projects truckload rates will see a modest quarter-over-quarter dip in Q2, marking the ninth straight quarter of suppressed rates.
LTL rates, meanwhile, continue to defy broader market softness. The cost per shipment rose 1.5 percent quarter-over-quarter in Q1 and is forecast to remain elevated in Q2.
April 28: Trump Requiring That Truckers Speak and Read English – FreightWaves
President Trump signed an executive order on April 28 requiring that truck drivers be able to speak English or be placed out of service.
Among other requirements, the order “mandates revising out-of-service criteria to ensure drivers violating English proficiency rules are placed out-of-service, enhancing roadway safety,” according to a fact sheet published by the White House.
The order reverses a 2016 Federal Motor Carrier Safety Administration policy change made under the Obama Administration that removed the requirement to place truck drivers out of service for violating federal English Language Proficiency (ELP) rules.
“President Trump believes that English is a non-negotiable safety requirement for professional drivers, as they should be able to read and understand traffic signs; communicate with traffic safety officers, border patrol, agricultural checkpoints and cargo weight-limit station personnel; and provide and receive feedback and directions in English,” the fact sheet states.
