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Booming exports from the Far East see trade gaps widening

Trade imbalances on exports from the Far East to most major global regions have continued to worsen, creating challenges for container carriers and increasing costs for head-haul shippers, according to a new report from Sea-Intelligence. The maritime analyst found that four of the six major ex-Asia trades have backhaul utilisation of 30% or less, based on a rolling 12-month analysis designed to remove seasonal effects. The imbalance ratio measured loaded backhaul volume against loaded head-haul, showing how full vessels would be on the return leg if the head-haul were operating at 100% utilisation. The largest trade, Far East-North America, saw its imbalance fall sharply at the start of the pandemic, from around 40% to between 25% and 30%. Sea-Intelligence said this range now appeared to be the "new normal", the latest figure being 26.7%. The second-largest trade, Far East-Europe, has deteriorated more significantly, the imbalance falling from 50% to around 30% between 2020 and 2026. Unlike some other trades, Sea-Intelligence noticed the trend on Far East-Europe did not appear to have stabilised, suggesting the imbalance could worsen. Far East to Indian Subcontinent and Middle East also deteriorated, slipping from a stable level of around 40% until 2023 to about 30% currently. While the decline may be slowing, Sea-Intelligence said there was no clear evidence of a new stable level. The Far East-South and Central America trade briefly improved during the early pandemic period, when the backhaul could be filled to around 60%, likely driven by agricultural exports. Since then, however, the imbalance has generally worsened, although it may now have stabilised at slightly below 40%. The Far East-Sub-Saharan Africa trade followed a different trajectory, gradually becoming more balanced between 2018 and 2024 before sharply reversing in 2025. Its imbalance now stands at 28.1%, making it the second-worst of the six trades. Only Far East-Australia/Oceania bucked the trend. This, the smallest trade, was the most balanced, with backhaul utilisation around 60%, and was the only route showing no worsening imbalance. The overall "continued worsening of trade imbalances" is increasing the logistical burden of empty-container repositioning for carriers, Sea-Intelligence said. It warned: "For the head-haul shippers this means they will have to pay an increasing share of the round-trip costs."

Asia-Europe rates still sinking, but a different picture on the transpacific

European trades saw spot rates decline for a fourth consecutive week, with carriers cancelling or cutting back plans for rate boosting, but for those operating on the transpacific, the situation was far rosier, as increases were recorded for both US coasts. Spots may have held steady on Drewry's World Container Index's (WCI) Shanghai-Rotterdam leg this week, at $4,653 per 40ft, but for Shanghai-Genoa, there was yet another decline, 2% week on week, to finish at $5,506 per 40ft. Linerlytica analysts noted: "Asia-Europe carriers failed to hold rates into August, with prices still trending downwards. Average spot rates in early August continue to vary widely and range from $4,000 to $5,000 per 40ft. "Any hopes for a rate rebound will have to wait until mid-August, with CMA CGM and MSC leading the way with their announced new FAK rates, of $6,200 and $7,800 per 40ft, respectively, from 15 August." That new FAK from CMA CGM marks a $900 reduction on the price announced in mid-July, while Maersk went further, confirming its Far East-Mediterranean peak season surcharge, set for 14 August, would no longer apply. Vespucci Maritime CEO Lars Jensen said the Danish carrier's decision was indicative of the market having "past the apex of peak season", while sources told The Loadstar carriers holding rates would "count as a win". Bad news then for carriers if today's Shanghai Containerised Freight Index (SCFI) - which records rates quoted for the forthcoming week and, as such, can indicate the behaviour of the following week's WCI (as it did last week) - proves accurate. The index suggests that Shanghai-North Europe and Shanghai-Mediterranean rates will drop 2.1% (to $4,934 per 40ft) and 3.4% (to $5,730 per 40ft) week on week, respectively, contrasting with the WCI's forecast for the week ahead. Drewry noted: "Three blank sailings were recorded this week, and the same number is scheduled for next week on the Asia-Europe tradelane. As carriers continue to manage available capacity, Drewry expects rates to remain stable next week." On the transpacific trades, the picture could not be more different: Shanghai-US east coast and Shanghai-US west coast rates up 2.6% (to $9,290 per 40ft) and 4.1% (to $6,484 per 40ft), week on week, respectively, according to the SCFI. It showed Shanghai-New York rates climbed 4%, to $7,893 per 40ft, and the Shanghai-Los Angeles leg an increase of 3%, to $5,894 per 40ft, with Drewry attributing this to carriers' successful implementation of general rate increases (GRIs). Those GRIs, the index noted, "held firm into August", adding: "Meanwhile, port congestion across Central and South China continued to constrain capacity, providing further support to freight rates." Mr Jensen said: "The weekly WCI spot rates only showed minor changes this week compared with last week. What should be noted is that last week the SCFI spot rate index staged a major increase of almost $700 per 40ft on the Asia-USWC trade. "The WCI index only saw a $155 per 40ft increase this week after having seen a decline last week. This is an indication that the SCFI spike last week might indeed have been a phantom GRI." Linerlytica analysts said the rate rally on the trade had caught them offguard, "given the SCFI and SCFIS' recent correction but transpacific cargo volumes remain firm into August while capacity out of China remains constrained due to port congestion". Looking to capacity, the WCI noted that, with eight blankings scheduled for next week, the indication was for stable capacity, and, "as a result, Drewry expects the volatility in rates to reduce in the coming week".

300 jobs axed as DP World looks to revamp European operations

DP World's European operations look to be undergoing a major restructuring following the departure of several members of the senior commercial management team and confirmation of some 300 job losses. The precise shape of the restructure remains unclear, as a spokesperson for the Dubai-based terminal operator would only confirm to The Loadstar that there had been 300 staff redundancies across its European operations. Among the senior management to have left in the past month are the executive vice-presidents for Central and Western Europe, Dries Van Hoeymissen and Tony Hotine, and COO for Freight Europe Markus Rodatz. With no official announcement, all three made known they were no longer in those roles by updating their LinkedIn profiles, Mr Hotine the only one confirming that he had also left DP World. He noted: "Friday was my last day at DP World," adding "I have enjoyed being part of DP World's ambitious journey, and I will be following it with interest from the sidelines". Sources have told The Loadstar that VP commercial for Eastern Europe Marc Kleinclauss and Switzerland-based national sales director Richard Bingham had also departed, although neither have so far updated their LinkedIn profiles. The logic behind the shake-up is perplexing, given how well DP World's European operations fared last year, with the CEO for the region, Rashid Adbulla, noting during the group's 2025 results call in March: "DP World's operations in Europe are playing a central role in our global growth." Strength of performance was also evident in both the UK's London Gateway and Southampton facilities handling a combined 5m teu for the first time, and Antwerp Gateway hitting a new box handling record of 2.47m teu.