Trump's policies hit global shipping! Wan Hai Shipping forecast 2025 freight rates remain high
Tommy Hsieh, general manager of Wan Hai Shipping, said: "The Trump policy will have a significant impact on container traffic volumes and the supply chain, especially on decisions related to US import and export tariffs and labor disputes. Wanhai Shipping is also actively preparing for "another strong year."
First, Trump's announcement of tariffs on imports from Mexico, Canada, and China has already caused merchants to accelerate purchases ahead of schedule in order to complete purchases before the tariffs take effect. This behavior will have a direct impact on global traffic volumes, especially in terms of container traffic.
Second, Trump expressed support for the International Longshoremen's Association's position against the automation of ports on the East Coast of the United States, and the implementation of this policy may lead to the risk of strikes on the East Coast of the United States, especially the strike action that may resume on January 15, which may affect shipping plans and shipping schedules, further aggravating the container shortage.
Tommy Hsieh pointed out: "There is an increasing deployment of large vessels, which are causing port congestion. As ships get bigger, ports can't handle them in time, resulting in longer loading and unloading operations. This year, in Singapore alone, ships have to wait four to five days to dock, compared with three to four days in Shanghai and one to two days in Ningbo."
In addition, the voyage around the Cape of Good Hope takes up almost all available vessels, further exacerbating the ship shortage, which will also push freight prices to stay high.
Tommy Hsieh said: "Container ship charter prices have doubled since last year, reflecting the lack of supply of vessels. Only **0.3%** of ships in the global container fleet are idle, which is unprecedented in history."
"The market in 2024 has been better than we expected, especially since the Red Sea crisis caused freight rates to be much higher than in 2023, despite initial expectations for this year," he added.
In the first nine months of 2024, Wan Hai Shipping's operating income increased 60% year-on-year to NT $120.27 billion (about US $3.8 billion) and net profit also reached NT $34.63 billion (about US $1.1 billion), successfully reversing a net loss of NT $1.9 billion (about US $58.9 million) ** in the same period last year.
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