Strong US demand continues to shape market conditions this week, as equipment shortages at origin put pressure on global container flows. While Asia–Europe services remain stable, reduced container availability is beginning have an impact.
High US Demand Continues to Strain Equipment at Origin
Following the 90-day tariff reduction agreement between the US and China, carriers are continuing to front-load bookings to ensure cargo arrives before the mid-August deadline, which is the cut-off for qualifying under the temporary reduced rate. This means the effective window for loading goods is now through to mid-July, placing significant pressure on production schedules and outbound logistics from East China.
The biggest challenge at present is equipment availability. Container shortages are becoming more acute in key export hubs such as Shanghai and Ningbo, as production accelerates and demand for US-bound shipments continues to outstrip supply. While there is some impact on vessel space, it is container imbalances that are creating the most disruption.
The strong demand for containers on transpacific services is also affecting global container flows, which in turn is driving up freight rates across multiple trade routes, not just those serving the US.
Asia–Europe Services Stable but Feeling the Impact
Services between Asia and Europe remain seasonally steady, with no capacity adjustments or blank sailings announced this week. However, the ongoing demand for US-bound cargo is having a knock-on effect.
The pressure is not coming from increased demand on the Asia–Europe route itself, but from competition for equipment at origin. With transpacific and Europe-bound shipments drawing from the same pool of empty containers, availability is tightening, leading to upward pressure on rates even in the absence of a demand surge.
In the UK, London Gateway has seen a noticeable improvement in landside operations in the last week, although some residual delays remain. Felixstowe and Southampton continue to operate without disruption.
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].
