Freight rates fell for the eighth consecutive time! “The United States, Mexico and Canada” jointly imposed tariffs against China! China's strong response!
According to a report from Sohang Network on March 10, 2025, the Chinese export container shipping market remains in a slow recovery phase. Although there is overall growth in cargo volume, the recovery has fallen short of expectations. Freight rates on long-distance routes continue to decline, leading to a drop in the composite index. The SCFI (Shanghai Containerized Freight Index) shows that the freight index stands at 1436.30 points, a decrease of 78.99 points or 5.21% compared to the previous period's 1515.29 points.
On the European routes, the freight rate from Shanghai to Europe is 1582 per TEU, down 6.56% from the previous period. The Mediterranean routes saw a smaller decline compared to the European routes, with the rate from Shanghai to the Mediterranean at1582perTEU,down6.562517 per TEU, a decrease of 2.97% from the previous period. On the American routes, the freight rates from Shanghai to the West Coast and East Coast of the United States are 2291 per FEU and2291perFEUand3329 per FEU, respectively, down 7.70% and 5.10% from the previous period.
According to a draft executive order obtained by Reuters, the United States plans to impose fees on Chinese-built or Chinese-flagged ships docking at U.S. ports and is urging its allies to take similar actions, with the threat of retaliation if they do not comply. In response, Søren Toft, CEO of MSC, recently stated that the company might increase freight rates to mitigate the impact of the new U.S. policy on the shipping industry. On March 4, U.S. Treasury Secretary Bessent mentioned that Mexico has proposed aligning with the U.S. on tariffs against China and is encouraging Canada to take similar measures. Subsequently, on March 6, Mexican President Sheinbaum announced plans to review tariffs on Chinese goods. According to a Bloomberg report on March 8, Canadian Finance Minister Dominic LeBlanc stated that Canada is prepared to collaborate with the U.S. on new measures to prevent the dumping of Chinese goods in the North American market.
Meanwhile, on March 8, China responded to Canada's tariffs on Chinese products. The Customs Tariff Commission of the State Council issued an announcement: starting from March 20, 2025, an additional 100% tariff will be imposed on rapeseed oil, oilseed meal, and peas originating from Canada. Additionally, a 25% tariff will be imposed on Canadian aquatic products and pork.
Industry analysts suggest that the tariff disputes between China and the U.S. and its allies will continue to impact the global container shipping market. Traders need to closely monitor freight rates and other relevant information and adjust their shipping plans accordingly.