Short-term ocean freight rates on the Asia-Mexico and West Coast of South America (WCSA) route closed May at levels not seen since the rebound recorded at the beginning of 2016 and could exceed the barrier of five thousand dollars per 40-foot container (FEU), in an environment marked by capacity restrictions, high demand and increasing operational pressures in the shipping market.

According to the monthly EAX index report, prepared by Eternity Group Mexico , the index closed May at $3,488 per FEU , a 26.33% increase compared to the previous month. However, the acceleration observed during the final weeks of the period allowed market prices to surpass $4,500 per container by the end of the month, anticipating further increases in the coming weeks.

The main trigger for this new surge was the combination of operational delays caused by the Labor Day holiday in China , celebrated between May 1 and 5, and a significant reduction in capacity by shipping companies. In less than a month, shipowners withdrew more than 10 vessels from services connecting Asia with Latin America, a move that quickly altered the balance between supply and demand.

The speed with which these adjustments were implemented reflects a structural change in the maritime industry, where shipping lines now have a greater capacity to adapt their service networks and manage available space according to market conditions.

Following the resumption of operations in China in mid-May, rates began to fluctuate between three and four thousand dollars per FEU. As the month progressed, high vessel occupancy drove further increases, prompting numerous importers to seek to secure available space for critical cargo and seasonal goods.

This situation has begun to generate concern among maritime transport users due to the possibility of facing a new cycle of increased logistics costs just as the peak shipping season begins. Eternity Group’s analysis identifies a concentration of demand for priority products, whose owners are willing to pay higher rates to guarantee the shipment of their goods.

At the same time, the reduction in capacity has led to frequent changes in transit times, making logistics planning more difficult and forcing shippers to make decisions further in advance to avoid disruptions to their supply chains.

In addition to operational restrictions, there is the international geopolitical context. The report highlights that fuel represents between 20% and 25% of a shipping company’s operating costs and is currently above $90 per barrel due to tensions in the Middle East, well above the historical levels below $60 seen under normal conditions.

This increase in energy costs has encouraged shipping lines to prioritize corridors with better profit margins, which has contributed to the redistribution of capacity and upward pressure on various trade routes.

Under these conditions, Eternity Group anticipates that June will be a particularly challenging month for importers and exporters . The expectation is that rates will continue to rise week after week and that container availability will remain limited due to strong demand and difficulties in returning empty containers to Asia.

If capacity restrictions and the current level of demand persist, the market could trade above five thousand dollars per FEU in the coming weeks, consolidating one of the periods of greatest tariff tension observed in the transpacific corridor to Latin America in recent years.

Given this scenario, the analysis recommends avoiding speculative strategies when dealing with critical cargo and reinforcing logistics planning processes at least three to four weeks in advance. It also emphasizes the need for greater precision in defining the Cargo Ready Date (CRD) , as any modification can significantly increase the risk of losing previously reserved slots.

Meanwhile, the industry’s global capacity continued to grow. In May, an additional 140,317 TEUs (twenty-foot equivalent units) entered the market with the delivery of new container ships. CMA CGM led these additions, bringing 40,348 TEUs into its fleet with the commissioning of two large vessels.

The upward trend was also reflected on the Asia-East Coast of South America (ECSA) route , where the EAX index reached $4,219 per FEU, equivalent to a monthly increase of 36.61 percent. The performance of this corridor confirmed that tariff pressures extended beyond the Mexican market and revealed an unusual disconnect between available capacity and observed freight levels, pushing rates to their 2026 highs.

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El cargo Asia-Mexico freight rates are accelerating and aim to break the $5,000 mark. apareció primero en T21.

Short-term ocean freight rates on the Asia-Mexico and West Coast of South America (WCSA) route closed May at levels not seen since the rebound recorded at the beginning of 2016 and could exceed the barrier of five thousand dollars per 40-foot container (FEU), in an environment marked by capacity restrictions, high demand and increasing operational pressures in the shipping market.

According to the monthly EAX index report, prepared by Eternity Group Mexico , the index closed May at $3,488 per FEU , a 26.33% increase compared to the previous month. However, the acceleration observed during the final weeks of the period allowed market prices to surpass $4,500 per container by the end of the month, anticipating further increases in the coming weeks.

The main trigger for this new surge was the combination of operational delays caused by the Labor Day holiday in China , celebrated between May 1 and 5, and a significant reduction in capacity by shipping companies. In less than a month, shipowners withdrew more than 10 vessels from services connecting Asia with Latin America, a move that quickly altered the balance between supply and demand.

The speed with which these adjustments were implemented reflects a structural change in the maritime industry, where shipping lines now have a greater capacity to adapt their service networks and manage available space according to market conditions.

Following the resumption of operations in China in mid-May, rates began to fluctuate between three and four thousand dollars per FEU. As the month progressed, high vessel occupancy drove further increases, prompting numerous importers to seek to secure available space for critical cargo and seasonal goods.

This situation has begun to generate concern among maritime transport users due to the possibility of facing a new cycle of increased logistics costs just as the peak shipping season begins. Eternity Group’s analysis identifies a concentration of demand for priority products, whose owners are willing to pay higher rates to guarantee the shipment of their goods.

At the same time, the reduction in capacity has led to frequent changes in transit times, making logistics planning more difficult and forcing shippers to make decisions further in advance to avoid disruptions to their supply chains.

In addition to operational restrictions, there is the international geopolitical context. The report highlights that fuel represents between 20% and 25% of a shipping company’s operating costs and is currently above $90 per barrel due to tensions in the Middle East, well above the historical levels below $60 seen under normal conditions.

This increase in energy costs has encouraged shipping lines to prioritize corridors with better profit margins, which has contributed to the redistribution of capacity and upward pressure on various trade routes.

Under these conditions, Eternity Group anticipates that June will be a particularly challenging month for importers and exporters . The expectation is that rates will continue to rise week after week and that container availability will remain limited due to strong demand and difficulties in returning empty containers to Asia.

If capacity restrictions and the current level of demand persist, the market could trade above five thousand dollars per FEU in the coming weeks, consolidating one of the periods of greatest tariff tension observed in the transpacific corridor to Latin America in recent years.

Given this scenario, the analysis recommends avoiding speculative strategies when dealing with critical cargo and reinforcing logistics planning processes at least three to four weeks in advance. It also emphasizes the need for greater precision in defining the Cargo Ready Date (CRD) , as any modification can significantly increase the risk of losing previously reserved slots.

Meanwhile, the industry’s global capacity continued to grow. In May, an additional 140,317 TEUs (twenty-foot equivalent units) entered the market with the delivery of new container ships. CMA CGM led these additions, bringing 40,348 TEUs into its fleet with the commissioning of two large vessels.

The upward trend was also reflected on the Asia-East Coast of South America (ECSA) route , where the EAX index reached $4,219 per FEU, equivalent to a monthly increase of 36.61 percent. The performance of this corridor confirmed that tariff pressures extended beyond the Mexican market and revealed an unusual disconnect between available capacity and observed freight levels, pushing rates to their 2026 highs.

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El cargo Asia-Mexico freight rates are accelerating and aim to break the $5,000 mark. apareció primero en T21.

The maritime market between Asia, Mexico, and South America experienced a relative pause in the price increases that characterized the first quarter of the year during April. However, behind this apparent stability, new capacity pressures were already beginning to emerge, which now anticipate a new upward cycle for the start of the peak season.

The EAX Index , developed by the Chinese company Eternity Group Mexico , closed April at $2,761 per 40-foot equivalent unit (FEU) for the Asia > Mexico + West Coast of South America (WCSA) route, a slight decrease of 1.71% compared to March. However, this correction was far from representing a structural weakening of the market.

During the fourth month of the year, rates traded within a relatively narrow range of $2,500 to $2,900 per FEU, reflecting a significant reduction in volatility and greater stability in both available capacity and volumes handled. This behavior contrasted with the sharp fluctuations seen in previous weeks , when geopolitical tensions and operational adjustments by shipping lines drove abrupt increases on various transpacific and Latin American routes.

But the equilibrium was short-lived. Toward the last week of April, shipping companies began implementing strategic capacity cuts ahead of the Labor Day holiday in China, celebrated from May 1 to 5. The reduction in available space led to a buildup of cargo prior to the temporary shutdown of operations, a phenomenon that subsequently triggered additional pressure on demand once the holiday period ended.

The result was immediate. In the first days of May, the market resumed an upward trend, bringing forward the start of the peak season for maritime trade. Shipping lines began implementing General Rate Increases (GRIs) practically every week, with adjustments ranging from $500 to $1,000 per FEU, in an attempt to capitalize on capacity constraints and bolster rate levels.

However, the report itself warns that the sustainability of these increases will depend on the actual capacity of demand to absorb them in the short term, especially in an environment where doubts persist about the pace of global consumption and the evolution of supply chains.

The analysis also focuses on the operational discipline that shippers must maintain in the coming weeks. Key recommendations include avoiding any logistical speculation when dealing with critical or high-value cargo, and reserving space at least three to four weeks in advance to reduce financial and operational risks.

Added to this is the need to maintain absolute precision in the definition of the Cargo Ready Date (CRD) , because any modification to the committed date significantly increases the probability of losing spaces previously allocated by the shipping companies, particularly in a restricted capacity environment.

Meanwhile, global capacity continued to expand. Alphaliner data cited in the report shows that 88,744 TEUs (twenty-foot equivalent units) of new capacity entered the global shipping market during April. The largest addition came from CMA CGM , which added 29,254 TEUs during the month, reinforcing the fleet growth trend despite the current operational adjustments implemented on various routes.

The dynamics observed on the West Coast of South America were also replicated in the Asia-East Coast of South America (ECSA) corridor , albeit with higher fares. The EAX Index for this route closed April at $3,093 per FEU, a marginal decrease of 1.65% compared to the previous month.

During April, the ECSA market found a solid floor near $3,000 per FEU , supported by weekly capacity exceeding 60,000 TEUs. However, that support level shifted dramatically at the beginning of May, when rates climbed aggressively to over $3,800 per FEU.

The report attributes this behavior to the success of capacity-constraining strategies implemented by shipping companies, thus consolidating a regional upward trend at the start of the second quarter. This movement also confirms that, despite the entry of new fleets into the global market , shipping lines continue to use capacity management as their primary tool for maintaining rates on the most popular routes.

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El cargo Shipping freight anticipates a new surge after April’s lull apareció primero en T21.

The  container charter market  in  2025  is on track to become the best year since the  COVID-19 pandemic, as rates remain at “very healthy” levels for all classes of vessels, according to  Alphaliner .

“ The container charter market is ending 2025 on a sustained upward note , with high demand showing no signs of slowing, while charter rates remain at very healthy levels for all classes of vessels,” the consultancy said.

“Given that this trend is not expected to change in the coming weeks, it is safe to say that 2025 will be the strongest year the market has enjoyed outside of the post-COVID-19 freight boom years ,” he added.

Despite an unprecedented level of disruption and uncertainty at the political, geopolitical and macroeconomic levels around the world, the market has shown “remarkable resilience during the year, overcoming most of the challenges it had to face,” the entity emphasized.

“US tariffs, port fees, instability in the Middle East, the situation in Ukraine, as well as falling freight rates and the uninterrupted flow of new ship deliveries, have been obstacles that the market has successfully overcome,” he remarked.

Despite the above, there were also tailwinds, as “the detours around the Cape of Good Hope continued to be a blessing in disguise, since the much greater sailing distances on a typical voyage from Asia to the Atlantic basin helped to absorb a large number of vessels that would otherwise have been unwanted,” Alphaliner pointed out.

“Stronger-than-expected cargo volumes, particularly on North-South and regional trade routes, also helped to mitigate any risk of overcapacity. As a result of this high demand, tonnage supply was adjusted throughout 2025, despite a steady influx of new vessel deliveries and negligible scrapping volumes,” he added.

In its latest count of vessels in the spot charter market, Alphaliner sees only two ships currently idle worldwide, an all-time low . Similarly, figures for commercially idle tonnage continue to evolve at record lows, with the container ship fleet considered “fully employed.”

“The year 2026 should see a large-scale return of container shipping traffic through the Suez Canal. While the disruptions such a move will cause in the short term have the potential to boost tonnage demand, the long term looks bleak, with shorter sailing distances expected to make a substantial number of vessels redundant,” Alphaliner stated.

“In addition, 1.4 million TEUs of new shipbuilding capacity will enter service. Some might argue that this isn’t much considering the 3 and 4 million TEUs of new builds expected in 2027 and 2028. However, this will contribute to swelling a fleet that is likely already in oversupply mode due to the reopening of the Suez Canal. This combination could be toxic and put both freight and charter rates under significant pressure, unless cargo volumes continue to surprise, as they did in 2025,” he concluded.

With information from  Portal Portuario , a media outlet specializing in ports and maritime transport in Chile.

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El cargo The 2025 container chartering market is on track to be the best post-COVID-19 year apareció primero en T21.

The German shipping company Hapag-Lloyd reported on Wednesday that it concluded the first quarter of 2024 with a Group EBITDA of $942 million (mdd). Compared to the same quarter of the previous year, the Group’s EBIT decreased to $396 million and the profit to $325 million.

In the shipping line segment, transport volumes for the first quarter of 2024 increased by 6.8% to three million TEUs (20-foot containers), compared to 2.8 million TEUs in the same period a year earlier.

Transport expenses were comparable to the same quarter of the previous year at $3.3 billion.

Although costs increased significantly due to ship diversion around the Cape of Good Hope, these were largely offset by active cost management. Revenues decreased to $4.6 billion mainly due to a lower average freight rate of $1,359/TEU.

Compared to the same quarter of the previous year, EBITDA decreased to $906 million and EBIT to $378 million.

In the Terminals and Infrastructure segment, an EBITDA of $35 million and an EBIT of $18 million were achieved in the first quarter of 2024. This new segment was only created in the second half of 2023 and is currently in the establishment process. For this reason, the figures for the first quarter of 2024 are only comparable to the figures for the previous year to a limited extent.

“Although our results are significantly below the exceptionally strong figures of the previous year due to the normalization of supply chains, we are pleased to have started the new year well. Rates stabilized in the first quarter due to ship diversion around the Cape of Good Hope and increased demand for capacity. The numerous new ships that have been and will be delivered in the industry in 2024 have been crucial in keeping supply chains running without too many interruptions. Going forward, we must maintain strict control over our costs and continue the implementation of our Strategy 2030, with a primary focus on our decarbonization initiatives and our promise to be the undisputed number one in quality for our customers,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

In view of the good commercial performance in the first quarter of 2024, the Executive Board has revised its forecast for the current fiscal year, which was published on March 14, 2024. Group EBITDA is now expected to be in the range of $2.2 to $3.3 billion and Group EBIT in the range of $0 to $1.1 billion. It is still assumed that a large part of the projected result will be generated in the first half of the year. Given the highly volatile development of freight rates and the major geopolitical challenges, this forecast remains subject to a high degree of uncertainty.

With information from Portal Portuario, a media outlet specialized in ports and maritime transport in Chile.

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El cargo Hapag-Lloyd Closes First Quarter with EBITDA of $942 Million apareció primero en T21.

The import of goods from Asia, transported by sea to the commercial ports of Mexico or the West Coast of Latin America, has seen a substantial increase in freight prices in April of this year.

Negotiators of these prices have noted that during the fourth month of this year, the average price of freight per forty-foot equivalent unit (FEU) offered by shipping lines for the FAK market (freight of all kinds) has risen to $3,304, reflecting a monthly increase of 56.89%, according to the EAX Index, by Eternity Group Mexico.

This level in the tariff above three thousand dollars had not been seen since May 2023, according to the analysis of the Chinese-origin freight forwarder company.

In fact, the high demand seen in recent weeks for booking spaces on vessels, “exacerbated by congestion at origin and lack of available empty equipment in China,” has pushed the tariff up to nearly four thousand dollars per FEU, as stated in the monthly report of the indicator.

“Due to the Labor Day holiday in China (May 1), we observe that ports at origin continue to be congested and face serious short-term challenges, generating upward pressure on the tariff that will persist throughout May, even though MSC and CMA CGM will seek to deploy additional capacity in the trade with the launch of services dedicated to connecting Asia > Mexico,” said Eternity Group Mexico.

This company highlighted that during weeks 20 and 21 of this year, blank sailings will be implemented, reducing space capacity by approximately 19,000 TEU (twenty-foot equivalent units), and transit times will also be impacted. Likewise, due to the high volatility in the FAK market, “it will not be absurd to see rates in May quoting in ranges around five thousand five hundred to six thousand five hundred dollars.”

Furthermore, it recommended carrying out advance planning in import operations to reduce the impact on logistics costs and, in the case of critical operations, advised against speculating with them.

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El cargo Surpassing $3000: Tariff Rates at Unprecedented Heights Since May 2023 apareció primero en T21.

Hapag-Lloyd has initiated a partnership with Ikea Supply Chain Operations to decarbonize container shipments from the German shipping line originating from Asia, marking a significant step towards a more sustainable maritime industry.

For the period from March 2024 to February 2025, both companies have agreed to utilize Hapag-Lloyd’s highest product option for biofuels, “Ship Green 100,” which is based on biofuels made from waste and residues instead of conventional marine fuel oil. The expected outcome for Ikea during this period is a reduction in carbon dioxide (CO2) emissions of around 100,000 tons.

“Ikea is one of our valuable customers, known for their unwavering commitment to sustainability. By joining forces, we are significantly reducing CO2e emissions. Ship Green is an important aspect of our decarbonization journey and brings us one step closer to our goal of net zero fleet operations by 2045,” said Danny Smolders, Managing Director of Global Sales at Hapag-Lloyd.

Ikea’s goal is to reduce the relative greenhouse gas emissions from the transportation of its products by 70% by 2030 and to use only heavy vehicles and ocean vessels with zero emissions by 2040.

“It is through efforts like this that we can reduce immediate emissions from maritime transport in the short term. However, biofuels are not the ultimate solution, and we must continue to collaborate to make the necessary transition to zero-emission fuels and technologies,” said Dariusz Mroczek, Transport Manager, Category Area, Supply Chain Operations at Ikea.

This partnership represents a significant step forward in the maritime industry, where collaboration and innovation intersect to create a greener and more sustainable future for global maritime transport. Both Hapag-Lloyd and Ikea are committed to leading the way in environmentally conscious practices, setting a benchmark for the industry.

Hapag-Lloyd has launched the Ship Green product to offer its customers emissions-reduced maritime transport. Based on biofuels, Hapag-Lloyd’s customers can choose to avoid 100%, 50%, or 25% of CO2e emissions.

Ship Green, the company stated, is available for all shipments, including standard, refrigerated, hardtop, or tanker equipment.

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El cargo Hapag-Lloyd and Ikea set Sail for a Cleaner Maritime Transport apareció primero en T21.