International shipping update – February 2025

Welcome to this month’s shipping and logistics update, where we provide key insights into the latest developments affecting global supply chains of the moving industry. As we navigate shifting costs, potential labour disruptions, and global conflicts, staying informed is critical to managing risk and ensuring smooth operations. Read on for the latest news impacting your business.

United States

The resolution of the USA Longshoremen strike has stabilised port operations, but trans-Atlantic trade challenges persist. Disputes over semi-automated cranes at some ports continue to cause inefficiencies, though the risk of further strikes has lessened.

Vessel capacity remains tight, with carriers like Hapag Lloyd imposing peak season surcharges of $300 per 20ft container and $400 per 40ft container. This has led to delays, rolled containers, and cancellations, making advanced planning crucial.

While tariffs linked to potential political changes haven’t emerged yet, they could raise costs in the future. We strongly recommend clients plan shipments early to manage these challenges.

Canada

Recent labour strikes have disrupted operations at major Canadian ports, including Vancouver, Prince Rupert, and parts of Montreal. Inland rail services to and from these ports have been halted, further impacting logistics and affecting the inland Port of Toronto. Although the Port of Halifax is still operating, congestion is expected. We recommend businesses closely monitor the situation and explore alternative shipping routes.

Houthis / Red Sea

The Houthis remain a security threat to shipping lanes in the Red Sea, particularly near Yemen and the Suez Canal. While attacks have decreased, tension and instability in the region continue to prompt shipping lines to divert vessels away from the area.

There are early signs the Houthis may stand down, but this is yet to be confirmed. This has resulted in delays as vessels round the coast of Africa to avoid the Red Sea corridor.

Panama Canal developments

Recent statements by President Donald Trump have reignited debate over the ownership and operation of the Panama Canal. Trump has expressed a desire for the United States to “take back” the canal, citing concerns about China’s alleged influence and high fees for American vessels.

In response, Panama’s President José Raúl Mulino firmly rejected these claims, reaffirming Panama’s sovereignty over the canal and denying any foreign control. The Panama Canal Authority, an autonomous agency of the Panamanian government, continues to manage the canal, ensuring its neutrality and efficiency.

While these political statements have not yet impacted shipping operations, we will stay informed about potential developments that could affect transit through this critical waterway.

Capacity challenges and scheduling changes

The reorganisation of major shipping alliances is causing notable shifts in global trade routes. New partnerships, such as the Gemini Cooperation between Hapag-Lloyd and Maersk Line, and THE Alliance’s rebranding as the Premier Alliance, are driving schedule changes and reducing vessel frequencies.

These changes may lead to delays, rerouted shipments, and extended lead times. Additionally, geopolitical tensions near the Cape of Good Hope have caused vessels to bypass the Red Sea, creating further delays for shipments destined for Asia and Oceania.

Sustainability efforts and regulatory changes

New regulations, such as the EU’s FuelEU Maritime law, are increasing costs for shipments entering European ports. These measures are part of a larger push for sustainability, requiring strict monitoring of carbon emissions and surcharges for non-compliance. Meanwhile, shippers are advised to avoid including lithium-ion batteries in their consignments due to varying restrictions and penalties, which may result in unexpected delays or fines.

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Crown Worldwide (Australia) Pty Ltd 2024

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