Freight market update - 28 May 2025

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• Container services are being reintroduced on the Trans-Pacific trade route starting next month due to rising import demand from China.

• The temporary tariff truce between the U.S. and China is set to end on August 14.

• To ensure arrival in the U.S. before this deadline, peak season cargo must be shipped by mid-July.

• Operations are gradually resuming at Manzanillo, Mexico’s busiest container port, after a four-day customs workers’ strike halted cargo movement.

• The strike began on May 12 and caused an estimated $150 million in revenue losses, severely disrupting logistics across the region.

• MSC is launching weekly sailings to Long Beach, beginning June 9.

• The ceasefire between India and Pakistan brought much-needed relief to both citizens and regional supply chains.

• U.S. tariffs on Chinese goods: Reduced to 10%, down from a peak of 125%.

• Other tariffs, including the 20% IEEPA Fentanyl tariff, remain in effect.

• The 90-day pause starts May 14, providing short-term relief for businesses sourcing from China.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Container services are being reintroduced on the Trans-Pacific trade route starting next month due to rising import demand from China.
• At present, shipping capacity remains limited because many carriers had redirected vessels to other routes during the earlier market slowdown.
• The temporary tariff truce between the U.S. and China is set to end on August 14.
• To ensure arrival in the U.S. before this deadline, peak season cargo must be shipped by mid-July.
• This urgency has put pressure on shippers to move goods quickly, contributing to the spike in demand.
• A logistics provider reported that container space is already fully booked through the first week of July.
• Many carriers are overbooked, and space shortages are expected to result in cargo being pushed to later sailings.
• Ocean carriers are actively working to restore their Trans-Pacific services.
• Zim is resuming its express service from China to Los Angeles.
• MSC is launching weekly sailings to Long Beach, beginning June 9.
• The Premier Alliance is reinstating its PS5 route, with the first vessel departing Qingdao on June 6.
• Restoring full service on the route will take time.
• Industry warnings suggest it may take over a month to fully rebuild shipping capacity.
• The ceasefire between India and Pakistan brought much-needed relief to both citizens and regional supply chains.
• Although military hostilities have stopped, the ripple effects of the conflict are still being felt.
• Port operations on both sides experienced disruptions during the conflict.
• Indian western terminals faced blackouts, while major Pakistani ports saw suspended carrier calls.
• Air cargo was even more severely impacted.
• Over 30 airports in India were temporarily closed due to security concerns.
• Reciprocal airspace bans forced carriers to reroute flights, reducing cargo capacity and increasing costs.
• The impact was especially significant for temperature-sensitive goods like pharmaceuticals, which rely on precise and efficient logistics.
• While port and air operations have resumed, the overall situation remains delicate and vulnerable to renewed tension.
• Early May saw increases in both FAK (Freight All Kinds) and PP (Prepaid) rates.
• There are signs that some rate levels for the second half of the year may be adjusted downward, though this has not been confirmed.
• Demand is gradually recovering after sharp declines recorded in April.
• China-to-U.S. trade volumes dropped by 60% last month, leading to widespread blank sailings.
• Forward bookings have started to rise from mid-May, driven by China-based shippers ramping up volumes.
• This resurgence is linked to recent tariff adjustments and a temporary trade reprieve.
• Around 23% of weekly sailings have been cancelled this week.
• Carriers are actively managing capacity to align with the improving demand.
• Over the weekend, China and the U.S. agreed to a 90-day pause on escalating tariffs, signaling a temporary easing in their trade conflict.
• Both nations will reduce reciprocal tariffs that were imposed earlier this year.
• U.S. tariffs on Chinese goods: Reduced to 10%, down from a peak of 125%.
• Note: Other tariffs, including the 20% IEEPA Fentanyl tariff, remain in effect.
• Chinese tariffs on U.S. goods: Also lowered to 10%, easing the burden on U.S. exporters.
• The 90-day pause starts May 14, providing short-term relief for businesses sourcing from China.
• However, this is a temporary pause, not a permanent resolution—further negotiations and disruptions may still occur.

Turkey → North America

• Operations are gradually resuming at Manzanillo, Mexico’s busiest container port, after a four-day customs workers’ strike halted cargo movement.
• The strike began on May 12 and caused an estimated $150 million in revenue losses, severely disrupting logistics across the region.
• Some drayage trucks started moving containers earlier last week, signaling the beginning of recovery efforts.
• According to Guillermo del Río, president of the Western Maquiladora and Export Manufacturing Industry Association, it could take up to three weeks for the port to return to full normalcy.
• Del Río mentioned that while bulk cargo and rail shipments have resumed, new shipment scheduling had not yet started.
• “We’re going to be pushing for this to return to normal as soon as possible,” said del Río during a press conference, as reported by Mural.
• He also stated that additional personnel recruitment is underway to speed up cargo clearance.
• Del Río emphasized the strike’s significant impact on government revenue collection, logistics providers, and port-operating companies.
• Manzanillo Port, located on Mexico’s Pacific coast, plays a critical role in the nation’s global trade.
• The port manages approximately 4,000 truck movements daily and processed nearly 4 million TEUs in 2024.

North America → Turkey

• European port congestion continues to worsen, with severe labor shortages hitting key ports like Bremerhaven.
• Shippers are facing limited alternatives, and average delays now range from five to six days depending on the destination.
• Low rainfall has disrupted barge traffic on the Rhine River, intensifying congestion at major ports such as Antwerp and Rotterdam.
• Maersk reported a significant drop in available labor during recent holidays, including Easter and Ascension Day in Bremerhaven.
• While seasonal labor fluctuations were expected, the extent of the decline surpassed Maersk’s projections.
• More labor shortages are anticipated with additional holidays approaching.
• Maersk has extended its contingency plan through the end of May in an effort to manage delays until terminal productivity improves.
• Despite mitigation efforts, European importers have very few viable alternatives.
• Some ports may offer slightly reduced congestion, but only by one or two days.
• Previously, importers rerouted through Mediterranean ports to bypass Northern Europe, but that strategy is no longer effective.
• The ongoing Red Sea crisis has made these detours longer and more expensive, particularly when inland trucking to countries like Austria, Germany, or Switzerland is required.

Terminal Updates

Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

New York:

• The waiting time for all vessels calling APMT is up to 6 hours. Maher Terminals LLC reports vessel waiting times averaging around 6 hours.
• Average gate turn times are 38 minutes for single transactions and 58 minutes for double transactions.
• New cranes at APMT are set to be commissioned within the next two weeks.
• Although berth space will remain constrained, two vessels will be able to operate simultaneously along east-facing berths.
• APMT New York is currently experiencing high demand for gate appointments, particularly near vessel cut-off days.
• Customers are advised to deliver export cargo early—during the initial freight acceptance window—when appointment availability is typically higher.

Norfolk:

• The waiting time for a berth is up to 12 hours at Norfolk International Terminal (NIT) and 18 hours at Virginia International Gateway (VIG).
• Average gate turn times are 31 / 46 minutes for single and double transactions at NIT, and 37 / 64 minutes for single and double transactions at VIG.
• Virginia International Gateway is back in operation, though multiple cranes remain down for modifications or electrical work, with limited estimated return times.
• Crane #4 at NIT remains out of service since April 16 with no current update.

Charleston Terminal:

• No waiting time at Wando Welch Terminal and no waiting time at North Charleston Terminal.
• Average truck turn times are 19.4 / 20 / 15.1 minutes at Wando Welch Terminal, North Charleston Terminal, and Leatherman Terminal respectively.

Savannah:

• The average waiting time for vessel berth is 1 day for class 1 and 1.8 days for class 2 vessels.
• Average gate turn times are 34 / 52 minutes for single and double transactions respectively.
• Import dwell time is 5.6 days. Rail dwell time is 1 day.

Houston:

• Waiting time is up to 24 hours at Barbours Cut Terminal and 6 hours at Bayport Container Terminal.
• Average gate turn times are 35 / 60 minutes at Barbours Cut and 36 / 56 minutes at Bayport for single and double transactions respectively.
• Loaded import dwell time is 3.6 days at Barbours Cut and 3.6 days at Bayport.
• Yard use remains high at Barbours Cut.
• The Port of Houston is adjusting receiving days and cut-offs on short notice to maintain terminal fluidity.

Oakland:

• Average import deliveries are taking up to 4 days at Oakland International Container Terminal (OICT).
• Average gate turn times are 96 minutes.
• Three cranes at OICT are currently out of service.
• Berth maintenance is ongoing at OICT with one berth down at a time through Week 19.

Seattle-Tacoma:

• No waiting time at Husky Terminal or Washington United Terminal in Tacoma. No waiting time in Seattle.
• Import rail dwell is 2.3 days at Husky and 3 days at T18.
• Average gate turn times are 46 minutes at T18 and 72 minutes at Husky.

Los Angeles/Long Beach:

• All terminal gates are running as published and in line with the Pier Pass program.
• Port of Los Angeles dwell time for local import cargo is 3.6 days; on-dock rail dwell is 4.9 days.
• Import units on the street are averaging 3.8 / 6.7 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports remain at 4-8 days.
• Average terminal gate turn time is between 35 - 39 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal.

Intermodal Operations

Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

Port Status

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing robust performance and is equipped with ample capacity and resources. Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions.

To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts. Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.