SUEZ CANAL TRIES TO WOO BACK SHIPS ANNOUNCING DISCOUNT FOR LARGE BOXSHIPS
The Suez Canal Authority is offering incentives and discounts of 15 percent of the transit fees for containerships with a net tonnage of 130,000 tons and above. The offer begins on Thursday, May 15, and ships can take advantage of it transiting either laden or empty. The authority reports the offer will last for 90 days. Among the major carriers, CMA CGM ranked first in terms of net tonnage transiting the canal during the first four months of 2025. The Suez Canal Authority said it represented 19 percent of the total tonnage of containerships transiting the canal during the period, while CMA CGM’s representative said the carrier looked forward to increasing its use of the Suez Canal. The company said about a quarter of its ships transited the canal in 2024. Many carriers, however, have continued to take a wait-and see attitude toward a return to Suez routes. Maersk CEO Vincent Clerc last week, during the earnings report, projected the disruptions would continue for most of the year and said it would be “irresponsible” to rush back on to Suez routes. In addition to safety concerns, he cited the difficulties in adjusting the operations to the routes.
EXPECT ‘SUBDUED’ PEAK CONTAINER SEASON IN WAKE OF TARIFFS, SAYS ANALYST
The scope of the current tariff implementations is unprecedented, both in terms of the levels applied to China and the high rates extended to other U.S. trading partners, said Judah Levine, head of research for Freightos, in a new report. Unlike previous trade tensions where flows simply shifted, the breadth of these tariffs means U.S. import costs will inevitably rise. Most economists now predict slower U.S. gross domestic product (GDP) growth, an increased likelihood of recessions both domestically and globally, and a potential contraction in global trade. These factors will inevitably impact the freight market, particularly ocean freight and air cargo, said Levine. For businesses relying on international trade, adaptability will be key. Levine said these strategies may include diversifying supply chains, exploring alternative shipping methods, and closely monitoring policy developments. While challenges lie ahead, he said, it is possible to find opportunities amid the disruption.Levine advised providers to stay informed and agile, as the coming months will likely reshape the freight industry in ways we’re only beginning to understand.
GULF COAST PORTS POST RISING FREIGHT VOLUMES IN MARCH
Container and breakbulk cargo flows in March rose in Houston and New Orleans, while demand for crude oil continued to fuel shipments through Corpus Christi, Texas.Port Houston container volumes rebound in March.After sluggish freight flows in February, Port Houston handled 386,864 twenty-foot equivalent units in March, a 7% increase compared to March 2023.It marked a rebound after fog disrupted February freight movements through the Houston Ship Channel, with the port handling 325,424 TEUs in February, a 13% year-over-year decline compared to February 2024. Year-to date container volumes at Port Houston’s public terminals surpassed 1 million TEUs, reaching 1.1 million, essentially flat compared to the same period in 2024, Shaffner said.“In terms of our financials, they’re performing as expected and are slightly evolving there,” Shaffner said. “The full impact of tariffs and fees for Chinese vessels remains the variable that we’re keeping a close eye on.”
COSCO SHIPPING LINES OPENS UP SAUDI ARABIA OFFICE
Chinese shipping giant Cosco Shipping Lines has inaugurated a new office in Saudi Arabia as it continues to grow in the country.“Saudi Arabia is one of the important overseas markets for Cosco Shipping and the establishment of Cosco Shipping Lines (Saudi Arabia) is a milestone for the company to deepen business development in the region,” the Chinese shipping company said. “In the future, Cosco Shipping Lines will leverage its advantages and actively utilize the invested terminal resources in Jeddah Port and the railway terminal project to be built by the West Asia company in Jubail Industrial City to better serve Cosco Shipping’s fleet,” commented Cosco Shipping. As the end of March, Cosco Shipping Lines operates a fleet of 426 vessels and 402 shipping routes, servicing for 638 ports in 146 countries and regions. China has been the largest trading partner for Arab counties in consecutive years, the trading value of China Arab exceeding $400 billion last year. The exports to Saudi Arabia increased 18.2% in 2024