Author: scott.mealings

Global Shipping Market Update: Rate Increases and Supply Chain Shifts

The global shipping industry is experiencing significant changes as major carriers implement peak season surcharges and adapt to evolving trade patterns. Recent announcements from leading shipping lines signal both opportunities and challenges ahead for shippers across key routes.

Major Carriers Implement Peak Season Surcharges

Several major shipping lines have announced substantial peak season surcharges (PSS) taking effect in the coming weeks. MSC leads the charge with a USD 300 per TEU surcharge beginning July 15th, while ANL and OOCL have set even higher rates at USD 350 and USD 500 per TEU respectively for Australia and New Zealand routes, effective August 1st. PIL has announced the most aggressive increase, implementing a USD 500 per TEU surcharge for Australia-New Zealand services starting August 8th.

These rate increases reflect the ongoing capacity constraints and strong demand patterns that continue to characterize the shipping market, particularly on routes serving the Oceania region.

Taiwan Carriers Positioned to Benefit from US-Vietnam Trade Relations

Taiwan’s three largest liner operators—Evergreen Marine Corporation, Yang Ming, and Wan Hai Lines—are well-positioned to capitalize on the proposed tariff settlement between the United States and Vietnam. Having strategically launched several intra-Asia services to Vietnam earlier this year, these carriers have established themselves in a market that stands to benefit significantly from improved trade relations.

This strategic positioning demonstrates the importance of anticipating geopolitical developments and their impact on trade flows, allowing these operators to capture emerging opportunities in the Vietnam market.

CMA CGM Expands Indian Ocean Presence

French transport giant CMA CGM continues to strengthen its position in the rapidly growing Indian container trade market. The company has added the chartered 4,395-TEU vessel SCI Mumbai to its India-registered fleet, reflecting the broader trend of supply chain diversification within Asia.

This expansion aligns with the growing momentum toward reducing dependence on single-source supply chains, as companies seek to build more resilient logistics networks across the Asian region.

Oceania Faces Limited Shipping Options

Exporters in Australia and New Zealand are confronting reduced ocean freight options as a result of ongoing liner consolidation in the industry. This consolidation has led to fewer service options while simultaneously driving growth in air cargo trade with Asia as businesses seek alternative transport solutions.

Adding to these challenges, Maersk announced “temporary adjustments” to its Northern Star service, which operates between Asia and Oceania, further constraining available capacity on these crucial trade routes.

Air Cargo Market Faces Capacity Constraints

The air cargo sector is experiencing its own set of challenges, particularly in the Indian market where capacity is expected to tighten following recent operational disruptions. The tragic Air India crash and resulting service cuts have created capacity shortages that may lead to rate increases across the region.

Tata Group-owned Air India is navigating significant operational pressures, including tighter technical inspections and schedule cancellations, which are contributing to the overall capacity constraints in the market.

Forwarders Diversify into Airlines

The logistics industry continues to evolve as freight forwarders increasingly invest in airline operations to transform themselves into comprehensive logistics providers. This trend represents a significant shift in the industry structure, with companies expanding beyond traditional shipping and land transport to include air freight capabilities.

This diversification strategy reflects the blurring lines between different segments of the logistics industry, as companies seek to offer end-to-end solutions and capture value across multiple transportation modes.

Geopolitical Challenges Impact Air Operations

The airline sector faces mounting challenges from airspace closures and rising fuel prices, though the broader freight market has not yet seen significant impact. Closures of airspace around Israel, Iran, and Iraq following renewed hostilities in the region are creating operational complexities for airlines, though freight markets have proven relatively resilient to these disruptions.

Looking Ahead

The shipping and logistics industry continues to adapt to a complex operating environment characterized by capacity constraints, geopolitical tensions, and evolving trade patterns. While challenges persist, strategic positioning and diversification efforts by major players suggest the industry is actively working to maintain service levels and capture emerging opportunities.

Shippers should prepare for continued rate volatility and consider diversifying their logistics strategies to maintain flexibility in this dynamic market environment.

The shipping industry is in a state of flux, with shippers casting a wary eye on ocean liners’ ventures into freight forwarding. Many remain unconvinced about the long-term viability of this shift, particularly questioning whether carriers are ready to embrace terms and conditions that create a fairer playing field. Historically, carriers have approached this space with what some describe as a “missing level of respect” for their customers. A quick glance at the terms and conditions they offer reveals a distinct tilt in their favor—hardly a surprise, but a sticking point for shippers seeking equitable partnerships.
For those contemplating a shift in sourcing strategies, industry “best practice” advice points to India as a rising star. According to recent projections, India boasts the third-largest predicted trade growth globally between 2024 and 2029, trailing only China (12%) and the United States (10%). With an anticipated 6% share of additional global trade over the next five years, India’s rapid growth in speed and scale makes it an attractive option for shippers looking to diversify.
India’s Maritime Ambitions Take Shape
India’s growing prominence isn’t just theoretical—it’s being backed by strategic investments. The Banga family, owners of Hong Kong-based Caravel Group and Fleet Management, recently acquired India’s International Maritime Institute (IMI) for an undisclosed amount. This move underscores an “urgent challenge” facing the global shipping industry: attracting and developing young talent to sustain operations. The Banga family has pledged to preserve IMI’s legacy while injecting resources into curriculum upgrades, faculty development, and expanded career placement programs. As digitalization, automation, and sustainability reshape how ships are operated, IMI is poised to equip seafarers with the skills needed to thrive in this evolving landscape.
Labor Shortages and Global Solutions
Meanwhile, acute labor shortages are prompting creative solutions elsewhere. South Korea, a shipbuilding powerhouse, is reaching beyond its borders to fill positions at its bustling shipyards. This summer, 280 workers from landlocked Uzbekistan will arrive in Ulsan, an industrial hub, to help meet demand. The country has faced a significant manpower crunch in recent years, driven by a surge in shipbuilding contracts. To address this, Seoul has raised its annual skilled worker visa limits and forged training and recruitment pacts with Asian nations. Beyond Uzbekistan, South Korea has tapped Nepal—another landlocked nation—for up to 3,000 workers, alongside labor from Southeast Asian countries like the Philippines, Indonesia, and Thailand.
Regional Developments in Logistics
In the Philippines, A.P. Moller Capital has struck a deal to acquire a 40% stake in AC Logistics (ACL) from Ayala Corporation. This move signals growing interest in Southeast Asia’s logistics potential, as global players seek to capitalize on the region’s strategic position and economic growth.
Closer to home, Brisbane’s Autostrad Terminal has announced a temporary halt to all ship and yard operations from 07:00 to 11:00 on Wednesday, March 26, 2025. The pause is due to a Maritime Union Australia (MUA) stop-work meeting, a reminder of the critical role labor dynamics play in keeping the industry moving.
The Road Ahead for Shippers
As ocean liners push deeper into freight forwarding, shippers face a complex landscape. Carriers’ reluctance to level the playing field may test trust, while emerging markets like India offer fresh opportunities. At the same time, the industry’s transformation—driven by technology and sustainability—demands a skilled workforce, prompting innovative approaches to recruitment and training worldwide. For businesses like NZ Freight, staying ahead means keeping a close eye on these trends, balancing risk with opportunity, and navigating the ever-shifting currents of global trade.

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