CMA CGM REFLAGS SHIP TO BECOME LARGEST U.S.-FLAGGED CONTAINERSHIP
CMA CGM is moving forward with its commitment to triple the size of its U.S.-flagged fleet as part of a $20 billion investment into its U.S. ship and logistics operations. Today, July 24, the company officially reflagged the first of four vessels it plans to move into the U.S. registry. The CMA CGM Phoenix (115,000 dwt – 9,326 TEU) hoisted the U.S. flag in Charleston, South Carolina, in a ceremony to mark the completion of its transfer from Singapore to the U.S. registry. Built in 2013 by South Korea’s Daewoo Shipbuilding & Marine Engineering, the vessel had previously operated as the APL Phoenix. According to the company, the CMA CGM Phoenix will be followed by three other vessels, each with a capacity of 9,300 TEU. When the transfers are completed, the company will have increased by 50 percent the number of American seafarers it employs. In addition, it highlights that the CMA CGM Phoenix will serve as a training platform for future officers. Two cadets will be aboard each voyage from the U.S. Merchant Marine Academy at Kings Point and the state maritime academies.
DREWRY: OCEAN RATES FALL FOR FIFTH STRAIGHT WEEK
Drewry’s World Container Index (WCI) tracking ocean freight rates declined 2.6% this week, marking the fifth consecutive week of decreases. The analyst in an update said that the trend indicates a significant shift in market dynamics following a volatile period induced by increased U.S. tariffs in April, and a subsequent China-U.S. tariff pause. Although the tariffs initially caused a lagged market reaction that saw rates climbing in May and surging into early June, this upward trajectory has not been sustained as rates have steadily dropped since mid-June. Trans-Pacific spot rates have also felt the impact, with prices from Shanghai to Los Angeles currently down by 4% to $2,817 per forty foot equivalent unit (FEU). Similarly, rates on the Shanghai to New York route have declined by 6%, to $4,539 per FEU. Drewry said that despite these decreases, rates on both lanes remain higher than levels observed 10 weeks ago
when tariff anxieties were initially escalating. Rates from Shanghai to Los Angeles are still up 4%, while those to New York have climbed by 24% compared to the figures on May 8. The overarching decline in spot rates can largely be attributed to weakening demand, which is expected to persist according to Drewry’s Container Forecaster.
US-EU DEAL SETS A 15% TARIFF ON MOST GOODS FROM EUROPE
The Trump administration and the 27-nation European Union agreed on Sunday to a trade framework setting a 15% tariff on most imported goods from Europe, while goods from the U.S. will face zero tariffs.U.S. exports to the EU include fuels, pharmaceuticals, machinery, and aircraft. The EU, in turn, exports cars, pharmaceuticals, vehicles, semiconductors and machinery to the U.S.As part of the deal, the EU agreed to purchase $750 billion worth of energy from the U.S., and invest $600 billion more in the U.S.“All of the countries will be opened up to trade with the United States at zero tariffs, and they’re agreeing to purchase a vast amount of military equipment,” President Donald Trump said, according to CNN. The agreement, which has yet to be finalized, staves off the 30% tariffs Trump had threatened to impose on the EU earlier this month, as well as high import duties on U.S. goods into EU countries. Trade between the U.S. and EU totaled around $975 billion worth of goods in 2024, according to Commerce Department data. Ursula von der Leyen, the president of the European Commission, said the deal creates certainty for companies on both sides of the Atlantic.
SEA LEGEND LAUNCHES CHINA–EUROPE ARCTIC CONTAINER SERVICE
Niche Chinese liner Sea Legend Shipping is set to launch a direct container service between China and northern Europe via the Northern Sea Route (NSR).The new seasonal service, expected to begin in September, will offer an 18-day transit between East Asia and Europe—nearly halving the 30 to 50 days typically required via the Cape of Good Hope. The 4,890 teu Istanbul Bridge has been named for the inaugural voyage, calling at Qingdao, Shanghai, Ningbo, Felixstowe, Rotterdam, Hamburg and Gdansk. The vessel is currently operated by Sea Legend’s Russian-focused partner, Safetrans Line, and previously ran as the Flying Fish 1, which undertook an Arctic voyage in 2023. Its expansion into the Arctic reflects deepening Sino-Russian cooperation and Beijing’s growing interest in developing alternative trade corridors amid geopolitical instability. The company is targeting premium cargo with high time sensitivity, such as electronics and fashion, hoping to capitalise on faster delivery cycles and inventory efficiencies. While climate change has increased the seasonal window for Arctic navigation, the route remains limited to summer months. Sea Legend will run a single voyage this year, which it claims is already fully booked.