World News
Tariff Truce Sparks Charter Market Surge, But Uncertainty Looms
A 90-day tariff reprieve between the US and China has revitalised the container charter market, driving a surge in demand and a rally in freight rates, particularly on transpacific routes.
Sector specialist Alphaliner reports carriers are racing to secure extra loaders to meet a spike in bookings, with congestion in North European, US, and Chinese ports further fuelling the need for additional tonnage.
Mid-sized vessels (1,500–2,900 TEU) have been the primary beneficiaries, as limited availability in the 3,000-plus TEU segment continues to constrain fixing activity.
Moreover, prompt shipments are commanding premium rates as owners capitalise on the tight supply.
Charter rates in the mid-size range remain strong.
But this bullish run is tinged with caution.
The tariff truce is set to expire in early July, leaving market participants unsure whether current momentum will hold.
While transpacific freight rates surged following the truce announcement, the rally is already cooling as capacity returns. Carriers are hedging their bets, opting for shorter charters on larger vessels while locking in longer-term deals for smaller ships where confidence remains firmer.
The short-term boost has revived sentiment, but the outlook beyond July remains clouded by geopolitical uncertainty and potential policy reversals.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 1.00 | 600.50 | 1.50 |
| Rotterdam | 472.50 | 3.00 | 612.50 | 3.00 |
| Houston | 472.00 | 0.00 | 619.00 | 0.50 |
| Fujairah | 502.00 | 2.00 | 709.00 | 4.50 |
| Global 20 Ports Average | 532.00 | 1.00 | 706.00 | 0.50 |
| Global 4 Ports Average | 489.50 | 1.50 | 635.50 | 2.00 |
| Global Average Bunker Price | 568.50 | 1.00 | 753.50 | 1.00 |
Popular Now More
-
May 27Chris Young has recently joined the company as management consultant, a Sekavin representative tells Ship & Bunker. -
May 28ScanOcean tells Ship & Bunker it expects biofuel demand to grow in the latter part of this year as many shipowners holding off on compliance purchases under FuelEU Maritime begin to act. -
May 29The passage of the floating production platform will last for 11 hours.