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Big shifts are happening in the global logisticsindustry. Here's what you need to know:

‍Container Rates: Slow decline, but nowhere near pre-pandemic

Average container rates decreased to $2948 this February, far below the previous pandemic peak of $10,377 in September 2021 and lowest since May 2024. However, the index was still significantly higher than the 40ft container average of $1,420 in 2019, pre-pandemic.

The average year to date (YTD) index is $3,372 per 40ft container, which is $490 higher than the 10-year average of $2,882. This inflation is due to the exceptional rates in the 2020-22 Covid period.

Airfreight Rates: Seasonal fluctuations

Airfreight rates showed seasonal fluctuations, with a steady rise through Q4 2024, peaking in December, followed by a sharp decline in January 2025. Prices were relatively stable in mid-2024 but saw increases in March and October, likely due to seasonal demand. The post-holiday dip in early 2025 reflects a typical slowdown after peak-season shipping.

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Deep Dive: The impact of fees and tariffs on the global shipping industry

The U.S. Trade Representative (USTR) has outlined plans to apply fees of up to $1.5 million per port call on Chinese-built vessels entering U.S. ports. Additionally, vessels owned by Chinese companies, including those flagged in other countries but constructed in Chinese shipyards, could face service fees up to $1 million per U.S. port visit.

CMA CGM, the world's third-largest container shipping line, has expressed concerns regarding the potential impact of these fees. The company's Chief Financial Officer highlighted that China constructs more than half of all container ships globally, suggesting that the proposed fees could significantly affect shipping firms worldwide.

Furthermore, the WSC President and CEO emphasized the widespread implications of the proposal, stating that 98% of ships calling on U.S. ports could be affected as the USTR’s proposed port fees could add $600–$800 per container, effectively doubling the cost of shipping U.S. exports.

As the USTR's proposal awaits finalization, expected this upcoming April, the shipping industry and global trade stakeholders are closely monitoring its developments. The decision will likely have significant implications for international shipping operations, trade routes, and the balance of power in the global maritime sector.
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^{Sources: Drewry World Container Index, Freightos Air Index, Riviera MM, Reuters, Marinelog}

Rulewave Monthly Industry Insight February 2025

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