Customer Advisory: April 2025 Freight Market Update

The April 2nd announcement of reciprocal tariffs has created major uncertainty in our industry. Plans to relocate manufacturing to countries like Vietnam, Bangladesh, or India are no longer viable due to these countries are also facing high tariffs. This uncertainty may delay negotiations for the 2025 ocean freight contracts, which were expected to conclude before May 1st. Importers are adjusting their volume forecasts and sourcing plans, so we now anticipate contract completion sometime in May rather than earlier.

Yusen Logistics teams are closely monitoring the situation and working with our transportation partners to meet customers' needs. Please provide your shipping forecasts to your local Yusen representative and consider booking 4 to 6 weeks in advance.

Below is an overview of the current market situation across major trade lanes. For inquiries, please contact your Yusen representative or email us at solutions@us.yusen-logistics.com and a member of our team will contact you promptly.
 

GENERAL OVERVIEW

• Empty containers piling up in Los Angeles-Long Beach after January import surge Read More>>
• Montreal longshore labor talks head to arbitration after impasse Read More>>
• New carrier alliances launch with record schedule reliability Read More >>
• Volume shift from East to West Coast in 2024-2H Read More>>
• VLSFO 20 ports average index at $530 USD per mt at time of writing Read More>>
• Full list of reciprocal tariffs by country  Read More>>

TRANSPACIFIC EAST BOUND (TPEB)

• PNW capacity still disruptively blanked, owing largely to the postponement of PN4 service by Premier alliance members.
• April forecast for demand fluctuating greatly as shippers look for clarity on tariffs and reorganize plans for both current and future shipments.
• Terminal utilization in LAXLGB improves; however, dwell time remains 1-2 weeks on average.
• The 2025 contract start date of May 1st is likely to be pushed back as importers look to re-evaluate their supply chains.
   

TRANSPACIFIC WEST BOUND (TPWB)

• Carriers will likely continue to avoid the Suez Canal for the foreseeable future. Following U.S. aerial strikes on Houthi positions in Yemen and the end of the Gaza ceasefire, the Houthis have announced plans to resume vessel attacks.
• Congestion remains a problem on the U.S. West Coast due to diverted cargo from the averted ILA port strike, an early Chinese New Year, and a surge in shipments ahead of new tariffs. Changes in carrier alliances have worsened this issue.
• Overseas, Asian transshipment hubs also face delays, partly due to shifting carrier alliances and adverse weather.
• Overall, TPWB volume was down year-over-year in Q4, and capacity is expected to outpace demand in the near future.
   

TRANSATLANTIC EAST BOUND (TAEB)

• Congestion in Europe remains a major issue, with over 30% of global TEUs waiting at European and Mediterranean ports at one point. Factors include a surge in import volume, labor actions, carrier alliance changes, and poor weather.
• Ports in North Europe, like Hamburg and Rotterdam, have been especially affected, while Piraeus in the Mediterranean has faced delays due to weather. Le Havre, Southampton, and Antwerp have also experienced vessel berthing delays.
• Although there is generally more capacity than demand, December and February saw demand for space exceed available capacity. 
   

LATIN AMERICA SOUTH BOUND (LATAM)

• Ongoing delays in LATAM led to demand slightly exceeding capacity in Q4.
• Adverse weather in Brazil and resulting congestion, as carriers omit ports and reroute, have effectively reduced capacity, creating an imbalance in a trade that typically has available space.

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