Source: The Loadstar
Date: 16th April 2025

Today’s “absolutely nuts” container shipping market will spur contract renegotiations, as rates and minimum quantity commitments (MQCs) are questioned.

Disruption has been constant for the past six years. It’s one thing after another.

And as a recent Loadstar report highlighted, “the colossal waves of uncertainty couldn’t come at a more unfortunate time”.

“April is traditionally the annual contract signing season, when most shippers and their carriers conclude pricing and volume commitments for the next 12 months,” explained the Loadstar.

The US tariff increases and pauses that had stifled demand, paired with ocean liners’ aggressive thirst for tonnage over recent years, had left “concerned for carriers”.

It was warned that when the market was in turmoil, “carriers tend to be opportunistic” and that as the rift widened between supply and demand, liner operators would keep rates from bottoming by imposing surcharges.

There have been attempts to keep rates from bottoming, with small, regular rate increases, but they felt artificial.

Indeed, Maersk announced a peak season surcharge (PSS) from Far East Asia, excluding China & Hong Kong, to the US and Canada, effective from 15 May of $1,000 per teu. And the Danish carrier will charge $500 per teu on cargo from Turkey and Egypt to the US and Canada.

Hapag-Lloyd announced a general rate increase (GRI) of $500 per teu from Asia to Latin America, effective 22 April, and on Monday, MSC announced a PSS of $800 per teu on North Europe to the US, Canada, Mexico, Puerto Rico, and the Bahamas, from 13 May.

It was advised that on many trades, shippers would be able to make savings by sticking to the spot market.

But the CEO of Sea-Intelligence told The Loadstar Premium: “The spot market is bound to be a wild ride in 2025, but at the moment, just based on the tariff madness, I don’t know the direction it’ll move.”

It was predicted that there would be “lots of renegotiating of contracts made over the past two quarters”, while shippers would need to reassess if they were able to provide their MQCs.