Global shipping firms are scaling back cargo capacity on East Asia��S routes, responding to falling demand and freight rates triggered by renewed tariff tensions, reports Seoul's ChosunBiz.
According to Sea-Intelligence, planned shipping capacity for next month has dropped to 360,000 TEU, down five per cent from mid-June figures. This month's capacity also fell eight per cent, from 400,000 TEU to 370,000 TEU.
The decline follows a brief surge in demand after the US and China postponed tariff hikes under the Geneva agreement. However, recent market shifts have reversed that trend, prompting carriers to adjust supply.
US container imports fell 3.5 per cent year-on-year in June, and freight rates from Shanghai to the US west coast plunged 63 per cent since June, now at US$2,067 per FEU.
The Korea Ocean Business Corporation warns that ongoing tariff uncertainty-linked to former President Donald Trump's policies - may further depress cargo volumes in the second half of 2025.
Domestic carriers like HMM and SM Line, heavily reliant on US routes, are bracing for weaker earnings. HMM's revenue is projected to drop 10.5 per cent, with operating profit expected to fall by over 50 per cent.
https://www.shippingazette.com/news?news_id=9250800000917
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