Weekly Ocean Operations Update: Asia to Europe, US and Australia 07/02/25

General overview:

The weekly normal capacity for the FEWB trade lane to North Europe is approximately 330,000 TEUs. 

In Week 5, capacity dropped by 42%, followed by a 41% decrease in Week 6, these reductions coincide with the Chinese New Year holiday. By Week 7, the decline will be less severe at 17%, and in Week 8, the reduction will narrow further to 5%. Week 9 is expected to see a reduction of 10%. 

The Mediterranean’s weekly normal shipping capacity is about 189,000 TEUs. Week 5 saw the most substantial decrease, with capacity down by 53%, coinciding with Chinese New Year. This was followed by a 35% reduction in Week 6. In Week 7, the decline will ease to 14%, and Week 8 will see a 6% reduction. In Week 9, the reduction will be at 7%.

The market remains in a period of adjustment following the Chinese New Year holiday, with February bookings showing significant weakness as businesses in China only resumed work on February 5. This post-holiday lull is a typical seasonal trend and the market is expected to gradually recover as production ramps up.

Carriers have announced that they will continue routing via the Cape of Good Hope for the time being. This decision is based on the overall impact on global ocean freight and while the situation is being closely monitored, it is anticipated that network adjustments will take another three to four months. However, CMA is maintaining services for MEX and BEX (Turkish call) via the Suez Canal, while the FEWB route remains via the Cape.

In February and March, the newly formed Gemini alliance is implementing a limited blank sailings programme in an effort to improve schedule reliability. While this approach helps stabilise sailing schedules, it is also influencing market rates by creating surplus capacity.  Additionally, many cargoes are currently being rolled or re-routed as part of the transition to new services and alliances. The actual transit time impact of these changes will become clearer in the next two months, once the newly established alliances have fully taken effect.

March volumes are expected to return to normal levels, but close monitoring of vessel schedules across all new alliances will be necessary.

The TPEB (Transpacific Eastbound) trade line is currently overbooked across all regions. For PSW (Pacific Southwest), PNW (Pacific Northwest) and USEC (US East Coast) they are all overbooked and rolling, with huge rollover pools for all vessels. Some vessels are facing double rollover for the last sailing before Chinese New Year. However, capacity will return to normal after week seven. 

Overview by trade lane

FEWB summary:

Rate and capacity update as of February 7, 2025:

Oceania summary:

Rate and capacity update as of February 7, 2025:

Transpacific summary:

Rate and capacity update as of February 7, 2025: 

Asia port updates

Market intel: Europe

• New Alliance reshuffle starting from Feb : 
  • MSC : Standalone
  • Gemini : HPL / MSK
  • Primer Alliance : ONE / HMM / YML / MSC
  • OCEAN Alliance : COSCO / OOCL / CMA / EMC
• It is expected that there’ll be quite an amount of phase in-out and service changes in Feb before completely transformed from exiting alliance to the new alliance set-up. 

Market intel: Oceania

• Victoria International Container Terminal (VICT) at Port of Melbourne, Australia has purchased four new hybrid automatic container carriers to expand cargo handling capacity and reduce emissions, scheduled for delivery in 2025 and it will increase capacity to 1.5m teus annually once in position (Source: Seatrade Maritime News) 

Market intel: Americas

US Import Tariff

• US punishing 25% tariffs on Canadian and Mexican imports and an extra 10% duty on Chinese goods to took steps to appease his concerns about border security and drug trafficking. 
• However, the US government has agreed to hold off imposing 25% tariffs on Canada and Mexico for 30 days (until 1st week of March).
• The 10% tariff for China is still set to go into effect as scheduled on Tuesday 4-FEB 2025. (Source: The White House)

Hapag-Lloyd reduces capacity of Asia-USEC 'AA7' loop

• Hapag-Lloyd AA7 service will shift its 15,440 teu vessel currently deployed in this FEWB trade. They will be replaced by smaller 8,750 – 9,300 teu vessel.
• Wan Hai will continue to deploy neo-Panama ships of 13,250 –13,450 teu
• Hapag-Lloyd, Wan Hai: ‘AA7’ Far East - US East Coast
• Vessels Deployed 13 x 8,750 - 13,450 teu
• Port Rotation : Shanghai, Ningbo, Taipei, Yantian, Shekou, Cai Mep, Singapore, Colombo, New York, Norfolk, Charleston, Savannah, Shanghai. (Source: Hapag-Lloyd)

Equipment update by carrier

Correct at time of publication on February 7, 2025. Please find attached below.