Asia to Europe services remain stable this week, with congestion at London Gateway continuing to ease. The recent US–China tariff agreement is driving a surge in transpacific demand, while disruption to supply chains in the India–Pakistan region has eased, though restrictions and surcharges remain in place.
Surge in Transpacific Demand Following US–China Tariff Agreement
Following the recent 90-day tariff reduction agreement between the US and China, there has been a significant surge in US-bound bookings. The reduced tariff rate applies to US arrivals until mid-August, prompting many US retailers to bring shipments forward, aiming to move cargo by mid-July at the latest.
This surge is already creating equipment availability issues in key Chinese ports, particularly from East China, including Shanghai and Ningbo. Further pressure is expected as factories work through delayed orders and push out new ones. While this activity is centred on the transpacific trade, it’s also influencing global container flows.
Freight indices for Asia–Europe have risen in response to increased demand for sea freight out of Asia overall. While there is the potential that carriers may shift larger vessels into the US market and redeploy smaller ones on the Europe lane, no changes have been confirmed.
Asia–Europe Routes Remain Steady as London Gateway Congestion Eases
Shipping services between Asia and Europe remain stable, with carriers continuing to manage capacity through blank sailings in line with seasonal demand. While no additional blank sailings have been announced, pressure on Asia–US routes may still prompt capacity adjustments in the coming weeks.
In the UK, London Gateway congestion continues to ease, with steady progress being made on landside operations. Felixstowe and Southampton remain unaffected, operating as normal.
Meanwhile, despite recent comments from President Trump regarding a potential deal with Houthi rebels, vessels are continuing to reroute around the Cape of Good Hope, and no shift back to Red Sea transits is expected at this time.
India–Pakistan Situation Stabilises, but Restrictions and Surcharges Continue
The situation between India and Pakistan has stabilised following several weeks of volatility, with no new developments this week. However, the previously reported trade restrictions remain in place, and carriers continue to adjust services accordingly.
Shipping lines are still applying emergency operational surcharges on shipments originating in Pakistan, reflecting the additional feeder services now required to maintain coverage of the market. These added costs are expected to continue in the short term.
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].
