We’re seeing a 20% decrease in freight rates on Asia-Europe routes (currently at $2,565/FEU) and Asia-Mediterranean routes (currently at $3,500/FEU) compared to last year’s post-Lunar New Year levels. Unlike the Transpacific lanes, where tariff front-loading played a significant role in rate increases earlier in the year, these rate reductions are driven by softening demand and changes in carrier alliances rather than tariff-related factors.
For clients looking to optimise their shipping strategies, these changes offer an opportunity to secure more competitive rates on these routes, but it's important to stay mindful of potential shifts in market conditions. We’re here to help you navigate these fluctuations and find the best solutions tailored to your needs.
Tight Space in March, Improved Availability in April
March ended with strong demand, leading to tight space availability. However, April bookings are progressing well, with more space expected.
No New Blank Sailings Announced
Carriers have not scheduled additional blank sailings for April, maintaining elevated weekly capacity. This should help stabilise market conditions as demand continues to build.
Port Congestion and Disruptions Persist at Key Europe Ports
Ports like Rotterdam, Antwerp, and Le Havre are experiencing heavy congestion, primarily due to a combination of high cargo volumes, ongoing labour shortages, and supply chain disruptions, leading to vessel delays and re-routing. The Ocean Alliance has removed Rotterdam from its FAL1 eastbound service, replacing it with a second Southampton call. Rotterdam remains served by FAL6 and FAL2 services.
Impact of Myanmar Earthquake on Shipments
On March 28, 2025, Myanmar was struck by a devastating 7.7 magnitude earthquake, primarily affecting the Sagaing region near Mandalay. The disaster resulted in significant loss of life and caused extensive damage to infrastructure, including roads, bridges, and communication networks.
Port and Transportation Disruptions: The earthquake has severely disrupted transportation networks, leading to challenges in moving goods within Myanmar. Damaged infrastructure may cause delays in shipments originating from or passing through the affected regions.
For businesses that rely on goods from Myanmar, Thailand, and nearby regions, it’s crucial to monitor the situation closely and adapt contingency plans as needed to mitigate any disruptions to shipments. Unsworth are here to help keep you up-to-date and to explore alternative routing options to minimise delays.
US Tariffs: Key Highlights
President Trump has introduced new tariffs, starting with a 10% baseline on all imports to the US, including the UK. Additional tariffs are set for 60 countries, with up to 50% on nations like Cambodia, Vietnam, and Bangladesh, and 20% on EU goods. Specific items, including steel, aluminium, and foreign-made cars, will see tariffs of 25%.
Economists warn that these tariffs may raise prices for US consumers and disrupt global trade. Countries like China and the EU are preparing retaliatory measures, while the UK is assessing potential impacts on its businesses.
US Reciprocal Tariffs to Disrupt Customs Clearance
With tariffs targeting hundreds of countries and thousands of products, Customs and Border Protection (CBP) will face an overwhelming administrative burden, potentially adding 750,000 to three million tariff lines.
Shippers will encounter new challenges, including complicated customs rulings on product origins, increased tariff classifications, and stricter enforcement. This could lead to delays, backlogs, and disputes over origin, further slowing clearance times. European Commission President Ursula von der Leyen has warned that the changes will create a "bureaucratic monster" for businesses, increasing the risk of supply chain disruptions.
While Asia-Europe shippers may not face direct tariffs, they could still experience indirect consequences from shifts in global trade patterns and increased complexity in customs processes.
Air Freight Updates
Heathrow Airport Disruptions and Air Cargo Impacts
On March 21, 2025, a fire at a nearby electrical substation caused a significant power outage at Heathrow Airport, leading to its closure for approximately 18 hours. This unprecedented shutdown disrupted the movement of goods, affecting both imports and exports, with an estimated £543 million worth of goods impacted.
The closure led to the cancellation of over 1,300 flights, severely affecting cargo operations. Perishable goods, including salmon, were particularly affected, leading to concerns about spoilage and supply chain disruptions.
Although normal operations have now been restored, it's important to note that the fire caused delays and affected goods worth over £5.43 million. We advise our clients to remain vigilant, especially with upcoming planned closures for cargo tunnel refurbishments at Heathrow, scheduled for April 5th and 6th, 2025. During these closures, cargo tunnels will be closed between 21:00 and 05:00, and diversion routes will be in place. To minimise any disruptions, we recommend staying in close contact with your carriers and shipping partners for real-time updates on your shipments.
We continue to monitor developments at Heathrow and will provide updates as necessary to ensure that your shipments remain on track.
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The series of tariffs introduced by President Trump have substantial consequences for UK exporters and shippers. We dive in to the latest challenges and strategies to navigate the impact.
ICS2 is the EU’s enhanced customs pre-arrival security and safety program and is transforming the way shipments entering or transiting through the EU are managed. We are helping our clients stay well-prepared for this regulatory shift.
Freight rates are softening into March; capacity remains tight with ongoing challenges in equipment availability and fluctuating demand and global ports continue to struggle with congestion. We advise how to work around these challenges.
