Blank sailings on Asia–Europe routes continue, with congestion at London Gateway still causing delays. Tensions between India and Pakistan remain high, with ongoing disruption to regional services. Meanwhile, a new US–China trade deal is fuelling a surge in transpacific shipping demand, and strikes in Bangladesh and Belgium threaten further supply chain disruption in the days ahead.
Demand Surge Expected After US–China Tariff Agreement
A breakthrough in trade negotiations between the US and China has seen both countries agree to lower reciprocal tariffs from 125% to 10% for a 90-day period. While the effective US tariff rate on Chinese goods remains around 30%, still high by historical standards, it represents a significant drop and is already creating ripple effects across global supply chains.
The temporary reduction is fuelling a sharp uptick in demand, as importers move quickly to frontload shipments before tariffs potentially rise again. This is putting pressure on shipping lines and port operators, particularly as vessel capacity remains tight following a recent wave of blank sailings since late April.
Asia–Europe Shipping Services Remain Stable
Blank sailings on Asia–Europe routes continue this month as carriers manage capacity in line with seasonal demand. Overall service levels remain steady. While no further blank sailings have been announced this week, pressure on Asia–US lanes could prompt some diversion of capacity away from Asia–Europe, although this has not yet materialised.
In the UK, London Gateway remains affected by congestion, with delays continuing to impact landside operations. However, the port is following a clear plan to ease the backlog, and we remain optimistic that conditions will continue to improve in the coming weeks. Felixstowe and Southampton are operating normally, with no significant issues reported.
India–Pakistan Trade Disruption Continues
The situation between India and Pakistan remains volatile, despite a temporary ceasefire. Tensions remain high, and supply chains in the region continue to be disrupted.
Both governments are still enforcing restrictions on goods transiting through the other’s territory, prompting shipping lines to adjust services accordingly. In India, heightened port security remains in place, with ongoing operational delays and some carriers continuing to skip or divert sailings to nearby ports.
In Pakistan, emergency operational recovery surcharges are still being applied to imports and exports. These measures, introduced in response to regional instability, are expected to remain in place for the time being.
Strike Action in Bangladesh Disrupts Port Access
A strike by truck drivers in Bangladesh that began yesterday is continuing today, disrupting access to and from Chittagong Port and surrounding Inland Container Depots (ICDs). This latest protest is part of an ongoing dispute, with drivers barricading entry points to the port, significantly hindering the movement of cargo. While internal operations within the ICDs are continuing as normal, external container movements remain delayed.
Upcoming Industrial Action in Belgium
Industrial action in Belgium may cause disruption to supply chains in the coming days. A national strike called by the socialist union ACOD is planned for Tuesday, 20 May, targeting the public sector. The strike is expected to affect a range of services including port operations, customs clearance, and inland transportation by road and rail. Disruption is likely in and around key logistics hubs such as Antwerp and Zeebrugge.
While the full impact is not yet confirmed, delays to cargo movements and clearance procedures are possible. In addition, Belgian maritime pilots may begin protest action as early as Saturday, 17 May if ongoing talks fail to reach agreement. This could lead to further disruption for vessel movements in Belgian ports.
We will continue to monitor the situation and provide updates if industrial action proceeds as planned.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team at 01376 533039 or email [email protected].
