COSCO SHIPPING container ship. Photo: Cosco Shipping

Cosco Shipping Holdings announced operating revenue of RMB 233.86 billion, up 33.29% year-on-year. The company's net profit reached about RMB 55.40 billion, up sharply by 95.08%, of which the net profit attributable to the parent company's shareholders reached RMB 49.10 billion, up dramatically by 105.78%.

Outstanding Business Performance

The company's core businesses continued to maintain growth momentum in 2024:

• Container throughput reached 25.94 million TEU, up 10.12% year-on-year.
• Revenue from container shipping reached RMB 225.97 billion, up 34.40%.
• Total port throughput reached 144.03 million TEU, up 6.06%, with revenue from container terminal operations reaching RMB 10.81 billion, up 3.98%.

According to Cosco Shipping Holdings, "The 2024 container shipping market is expected to witness moderate growth in cargo throughput thanks to the gradual recovery of global trade. At the same time, the instability in the Red Sea has led to a shortage of effective vessel supply, contributing to keeping freight rates high."

The company emphasized: "Cosco Shipping Holdings has proactively taken advantage of market opportunities, promoted the development of high-quality production capabilities, digital transformation, artificial intelligence and green - low-carbon development. The company has achieved the goal of building a stable and sustainable supply chain, promoting high-quality growth, and delivering impressive business results."

Fleet expansion and technology modernization

In 2024, Cosco Shipping Holdings received 12 new ships with a total capacity of 230,000 TEU, deployed on main routes to Europe, North America and emerging markets in Latin America.

By the end of 2024, the total capacity of the company's autonomous fleet exceeded 3.3 million TEU, serving 629 ports globally. The company operates 429 international routes, with cargo volumes growing rapidly in Central and South America, Africa and Southeast Asia.

In order to optimize its fleet structure, Cosco Shipping Holdings has ordered 12 14,000-TEU dual-fuel methanol (Latamax) containerships in 2024. The company currently has a total of 32 methanol-fueled containerships on order, with a total capacity of nearly 590,000 TEU, including both newly built vessels and existing vessels converted to use dual-fuel methanol engines.

See more:

• US tariff war directly affects only 1.5% of global shipping volume
• MSC loses containers in storm off Portugal
• International shipping and logistics market update - Week 12/2025
• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to Seatrade-Maritime)

Phaata.com - Vietnam's First International Logistics Marketplace

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Port of Los Angeles, USA. Photo: Port of Los Angeles

Despite the attention, US tariffs and retaliatory actions have so far directly impacted only 1.5% of global shipping volume, according to the latest data from Clarksons Research. Prior to that, during the 2018-2019 trade war, the volume of goods transported in tonne-miles fell by just 0.5%.

Clarksons assesses that US trade policy remains volatile, and analysts at the world's largest shipbroker acknowledge that the risk of escalation remains, while indirect impacts could increase. However, there is also the potential for the US to establish new trade agreements and reshape global shipping patterns.

This week, the Office of the United States Trade Representative (USTR) will hold public hearings on March 24 and 26, 2025, regarding its Section 301 investigation into China's dominance in maritime, logistics and shipbuilding sectors.

Potential sanctions include:

• Imposing port service fees on Chinese-built vessels calling at US ports.
• Requiring exporters to ship a certain percentage of their cargo on vessels owned, operated and ultimately built in the US.

Uncertainty over US Tariff Policy

Judah Levine, head of research at Freightos, acknowledged that the tariff outlook remains extremely uncertain.

“Federal agency findings that could lead to sharp tariff increases on China, reciprocal tariffs on a long list of countries, the USTR’s proposed port fees on Chinese-made vessels, as well as the reinstatement of 25% tariffs on all Canadian and Mexican imports are due in early April,” Levine said.

“Given the massive uncertainty surrounding the US trade policy towards tariffs and proposals for port fees targeted at Chinese ships and carriers, shippers will seize any opportunity to lower their overall import costs during freight rate negotiations,” said Peter Sand, chief analyst at container freight rate platform Xeneta.

See more:

• MSC loses containers in storm off Portugal
• International shipping and logistics market update - Week 12/2025
• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to Splash247)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Service Providers!

MSC Houston V. Photo: Arcadio-Martinez/X

A container ship operated by MSC lost several containers during a storm while sailing in the Atlantic Ocean off Portugal.

The Portuguese-flagged MSC Houston V, with a capacity of 4,432 TEUs, was en route from Piraeus, Greece, to Liverpool, England, when it encountered rough seas and winds gusting up to 48 knots due to Storm Martinho as it passed near Cape St. Vincent.

At least 15 containers fell into the sea when the ship's stack partially collapsed, with many others damaged or hanging on the starboard side.

The 266-meter-long ship, built in 2010, was forced to make an emergency stop in the port of Vigo, Spain. The ship is currently docked at Termavi, where port authorities are working on plans to safely remove or handle the containers.

The port authority said the cranes have been removed from the area and that mobile cranes will be deployed to ensure the safety of the port and stevedores during the handling process.

“At this time, it is unknown how long the operation will last. Safety plans and logistics are currently being worked on. The important thing is that the ship is in port and there is no risk to navigation, and especially to fishing vessels due to the vessel’s size,” said Carlos Botana, president of the Vigo Port Authority.

Containers capsized on the MSC Houston V. Photo: Arcadio-Martinez/X

See more:

• International shipping and logistics market update - Week 12/2025
• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to Splash247)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Service Providers!

International shipping and logistics market update - Week 12/2025

Drewry's global aggregate container freight rate index in week 12/2025 continued to decrease by 4% to USD 2,264/FEU compared to the previous week. This freight rate index is 59% higher than the average of 2019 before the pandemic (USD 1,420). This downward trend reflects the lingering impact of weak demand after the Lunar New Year and concerns about overcapacity.

Drewry’s World Container Index Week 12/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 12/2025 continued to decline sharply by 11.74% compared to the previous week, down to USD 2,564/FEU. This price decreased by 37.63% compared to the previous month, according to Xeneta data.

Demand in March remained stagnant, with no growth since the Lunar New Year. Demand is forecast to be weak and not meet expectations as expected. Meanwhile, shipping capacity remains high, with deployments remaining above 80% from March to April.

Due to oversupply, spot rates in the market continue to trend sharply downward. The spread between fixed and spot rates is narrowing.

Carriers have announced General Rate Increases (GRIs) for April. Meanwhile, peak season surcharges (PSS) have been eliminated by most carriers for the remainder of March.

Container equipment supplies are plentiful, with availability at most Asian origin ports, and no significant shortages are expected in the coming weeks.

US Tariff Update:

We are less than two weeks away from April 2, 2025 — the day President Donald Trump reaffirmed that new reciprocal tariffs will take effect. On that date, Trump will impose a reciprocal tariff on each trading partner that will account for tariffs, non-tariff barriers, currency practices and other factors, according to Treasury Secretary Scott Bessent.

Currently, the 25% tariff applies to all steel and aluminum imports, including derivatives outside of Chapters 73 and 76, regardless of whether they comply with the USMCA or other FTAs ​​(like the KRFTA). In retaliation, Canada and Europe quickly announced their own countermeasures.

President Donald Trump has agreed to exempt Mexico and Canada from the 25% tariff on autos for one month. More than one-fifth of cars and light trucks sold in the United States are made in Canada or Mexico, according to S&P Global Mobility. The tariffs could push the price of some models as high as $12,200.

Asia-US West Coast Freight rate | Week 12/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Container freight rates from Asia to Northern Europe continued their downward trend in week 12/2025 fell sharply by 6.90% compared to the previous week, to USD 2,307/FEU. This price is down 17.61% compared to the previous month, according to Xeneta data.

Overall, the market continues to show oversupply. Shipping lines are becoming more competitive to attract cargo. Some cancellations in March have eased the oversupply situation, but have not led to a significant capacity shortage. MSC has reduced the size of vessels on its Lion service on the Asia-North Europe route, reducing capacity by 5,000 TEU per week. However, new fleets, mainly from Hapag-Lloyd, have partly compensated for this.

Capacity in the second half of March remains stable, with no sailings announced for April, although ongoing congestion in Rotterdam, Netherlands is causing some delays. To mitigate the impact of port congestion, transshipment arrangements will be managed at origin. Demand has picked up slightly and with reduced vessel sizes on pre-arrival services, the market is moving towards a more balanced supply-demand balance. There is still room for new bookings overall, but ship failures and delays are still possible.

The Shanghai Container Freight Index (SCFI) fell due to the cancellation of the March GRI, which led to stable rates. The focus has now shifted to the April GRI, with major shipping lines announcing increases while others wait to assess the market situation. Maersk took the lead in announcing the General Rate Increase (GRI) for April, marking the start of a new round of rate increases. The success of the April GRI implementation remains uncertain, largely dependent on market volumes in the second half of March.

Phaata recommends that shippers push forward with their shipments early to take advantage of the current low rates and minimize the possibility of rate increases.

Asia-Northern Europe Freight rate | Week 12/2025 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rate from North America (West Coast) to Asia in week 12/2025 remained unchanged from the previous week, at USD 617/FEU. This price decreased by 2.99% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 12/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Northern Europe to Asia freight rates in week week 12/2025 increased by 3.70% compared to the previous week, to USD 252/FEU; This price is up 0.40% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 12/2025 (Image: Phaata.com)

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See more:

• Why hasn’t the shipping industry returned to the Red Sea?
• Fedex warns of economic uncertainty that will slash freight demand
• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families

Source: Phaata.com

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Services!

Container shipping. Photo: Freepik/Phaata

Container shipping rates from Asia continued to decline last week, falling to their lowest level since 2024 due to a combination of weak demand after the Lunar New Year, the impact of new shipping alliance services, and fleet capacity growth.

Asia-Europe rates fell 11% to $2,740 per FEU, 14% below their 2024 low. Meanwhile, Asia-Mediterranean rates fell 9% to below $3,800 per FEU, 10% below their lowest level last year.

The post-Lunar New Year demand slowdown on these trades could be more severe than usual, as shippers stock up ahead of the holiday to offset the longer transit times associated with the Red Sea detour. However, freight rates have remained depressed despite congestion at many European ports. Several carriers announced surcharge increases (GRIs) in April, but most of the March rate hikes have been unsuccessful.

Trans-Pacific Market: Temporary Growth, Long-Term Pressure

There are signs of temporary demand growth on the trans-Pacific trade as orders are frontloaded to avoid new tariffs. However, if tariffs are implemented or inventories build up, the frontloading will end, potentially leading to a weaker-than-normal second half.

The tariff outlook remains highly uncertain, with a number of factors that could impact seaborne trade:

• Potential for a sharp increase in tariffs on Chinese goods.
• Retaliatory tariffs from multiple countries.
• USTR’s proposed port fees for China-based vessels.
• The reinstatement of a 25% tariff on all imports from Canada and Mexico, expected in early April.

Meanwhile, the US Federal Maritime Commission (FMC) has opened an investigation into the role of foreign governments in causing container congestion.

Signs of excess capacity begin to emerge

Despite relatively strong demand, trans-Pacific freight rates continued to decline over the past week.

Currently, US West Coast freight rates are around $2,400/FEU, while East Coast freight rates are $3,500/FEU, 18% below their 2024 lows.

In addition to the impact of the restructuring of shipping alliances, the weakening of freight rates on these routes may reflect excess capacity due to rapid fleet growth. This phenomenon, which was expected to cause a price collapse in 2023, has been somewhat contained since early last year as the diversion of traffic around the Red Sea has reduced vessel capacity.

However, if demand falls sharply as frontloading orders end, and given that global average rates are still 70% higher than in 2019 due to the Red Sea crisis, the market could be left with excess capacity even if the route around Africa continues. This is reflected in the trend of transpacific contract negotiations settling at lower rates than carriers expect.

Air Freight Market Developments

In the air freight sector, the Freightos Air Index recorded a slight recovery in freight rates from China last week:

• China – US: above USD 5.00/kg.
• China – Europe: above USD 3.80/kg.

However, there are signs that e-commerce demand to North America is slowing.

On the transatlantic route, freight rates reached $2.43/kg, up 15% from the beginning of the year. This may be related to pre-ordering to avoid tariff increases on imports from Europe to the US.
 

See more:

• Why hasn’t the shipping industry returned to the Red Sea?
• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to Container-News)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Service Providers!

A container ship passing Suez cannal. Photo: HladchenkoViktor/Adobe Stock/Phaata

When President Trump ordered airstrikes against Houthi forces in Yemen last weekend, he said the group’s attacks on cargo ships in the Red Sea had severely damaged global trade.

“These relentless assaults have cost the U.S. and World Economy many BILLIONS of Dollars while, at the same time, putting innocent lives at risk,” he wrote on the social media platform Truth Social.

But getting shipping companies back to the Red Sea and Suez Canal routes could take months and require more than airstrikes against the Houthis. For more than a year, most shipping lines have avoided the Red Sea route, instead rerouting their ships around the southern tip of Africa to Europe. The route is more than 3,500 nautical miles long and adds 10 days to the journey.

The shipping industry has adapted and benefited from higher rates

Shipping lines have adapted to the disruption and even benefited from a spike in freight rates after Houthi forces began attacking commercial vessels in late 2023 in support of Hamas in its conflict with Israel.

According to industry executives, they have no plans to return to the Red Sea unless there is a comprehensive peace deal in the Middle East that includes the Houthis, or the militant group is completely defeated.

“It’s either a full degradation of their capabilities or there is some type of deal,” Vincent Clerc, CEO of Maersk, said in February.

After this week’s US airstrikes, Maersk is not ready to return. “Prioritizing crew safety and supply chain certainty and predictability, we will continue to sail around Africa until safe passage through the area is considered more permanent,” a Maersk spokesperson said.

MSC, another major shipping line, echoed the sentiment: “to guarantee the safety of our seafarers and to ensure consistency and predictability of service for our customers.”

US ability to control the Houthis remains uncertain

It remains unclear how long it will take for the US to completely stamp out the Houthis, or whether that goal is even achievable. Lt. Gen. Alexus G. Grynkewich, the director of operations for the US Joint Chiefs of Staff, said the recent strikes were aimed at “a broader range of targets” than the Biden administration’s airstrikes. However, he also cast doubt on the Houthis’ true capabilities.

However, Middle East experts say the Houthis have proven resilient against much stronger forces and can act independently of Iran.

“A military solution alone, particularly one that is focused on airstrikes, is unlikely to be sufficient to defeat the Houthi by permanently halting their attack activity,” said Jack Kennedy, director of risk analysis for the Middle East and North Africa at S&P Global Market Intelligence.

The Houthis have slowed attacks on shipping since Israel and Hamas reached a ceasefire in January, and there have been no attacks on commercial vessels since December, according to data from the Armed Conflict Location and Event Data Project (ACLED), a crisis monitoring organization.

Shipping Lines Still Retreating to the Red Sea

However, major shipping lines have not yet returned to the Red Sea en masse.

In February, nearly 200 container ships passed through the Bab el-Mandeb Strait, the southern gateway to the Red Sea where the Houthi attacks have been concentrated. That’s up from 144 in February 2024, but still well below the more than 500 before the attacks, according to data from Lloyd’s List Intelligence.

The biggest shipping lines with large vessels are still avoiding the Red Sea, with the exception of France’s CMA CGM. However, their presence in the area remains limited and the company did not immediately respond to a request for comment.

One reason shipping lines are reluctant to return is the fear of having to abruptly adjust their routes if the situation in the Red Sea becomes dangerous again.

Shipping Lines Boost Profits By Going Around Africa

Despite the inconvenience and added costs, the route around Africa has helped shipping lines boost profits.

During the pandemic-induced global trade boom, companies have ordered hundreds of new cargo ships. Normally, a glut of ships would cause freight rates to fall, but that hasn't happened this time as shipping lanes have been rerouted around Africa, increasing demand for vessels and pushing up freight rates across all global routes.

Maersk last month predicted that its profits would have been higher if the Red Sea route had only reopened by the end of the year, rather than mid-year.

However, freight rates from Asia to northern Europe have recently fallen to their lowest since 2023, according to data from Freightos, a digital freight exchange.

The reason for the drop in freight rates is lower volumes shipped earlier in the year. In addition, the wave of imports into the US before Mr. Trump’s new tariffs took effect is almost over, and many businesses may be reducing orders in anticipation of weaker consumer demand in the coming months.

See more:

• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• VLCC offer prices remain high
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to The New York Tmes)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Service Providers!

Fedex Express. Photo: LukeSharrett/BloombergNews/Phaata

Shares of FedEx Corp. fell more than 5% in after-hours trading Thursday after the company cut its full-year profit forecast for the third straight time due to growing macroeconomic pressures and uncertainty in the U.S. industrial economy. These factors are weighing on its high-margin business-to-business services.

FedEx (NYSE: FDX) forecasts revenue to be flat or slightly down from the previous year, a change from its previous forecast of flat revenue. Earnings per share (EPS), excluding certain costs, are expected to be between $18 and $18.60, down from the previous forecast of $19 to $20.

A key uncertainty that could weigh on FedEx's earnings is the rapid escalation of tariffs and tariff threats from the United States, which have led to the risk of retaliation and concerns that consumer demand will decline due to higher prices.

Fiscal Q3 Financial Performance

In the third fiscal quarter ended February 28, FedEx reported revenue of $22.2 billion, up 1.9% year over year, and recorded adjusted operating income of $1.5 billion, up 11% year over year. This was despite a compressed shipping season and the impact of extreme weather events such as wildfires and snowstorms in North America.

It was also the first time FedEx has seen revenue increase since the new fiscal year began in June.

Although adjusted earnings per share were 12 cents below Wall Street's average estimate, they were up 17% from the year-ago period. Revenue, meanwhile, beat forecasts by $320 million.

Three factors driving earnings

FedEx said the earnings improvement was driven by three key factors:

1. Efficiency from its Drive transformation program, which cut $4 billion in fixed costs, including $2.2 billion in the current fiscal year, and improved customer service.

2. Higher shipping rates across its transportation segments.

3. Volume growth at FedEx Express.

Driving $600 million in savings in the quarter alone.

Business Unit Performance

• FedEx Express, which is integrating with FedEx Ground, reported a 17% increase in adjusted operating income to $1.4 billion, despite the loss of the domestic air freight contract with the United States Postal Service (USPS). Express also achieved growth in domestic and international export volumes, driving revenue up 2.7% to $19.2 billion.

• FedEx Freight, which is being spun off as a separate LTL (less-than-truckload) transportation company, was pressured by lower fuel surcharges, lower freight weights per trip and fewer trips. Operating income fell 23% to $261 million.

See more:

• Container freight rates plunge, charter rates remain high: Shipping market faces uncertainty
• OOCL sees strong 2024 earnings despite shipping industry challenges
• Air freight market trends Week 10 - 2025 by WorldACD
• International shipping and logistics market update - Week 11/2025
• Container shipping demand sees strong growth in January
• Drewry predicts new normal for global container rates
• CMA CGM to invest $20 billion to expand shipping, aviation and logistics operations in the US, creating 10,000 jobs
• New US tariffs threaten to reignite inflation: Hargreaves Lansdown
• Shipping industry on alert as Houthi deadline passes but Gaza aid stalls
• Retail trade groups: 25% Tariffs a burden for American families
• Trump's tariffs on Mexico, Canada will be inflationary, says Maersk
• International shipping and logistics market update - Week 10/2025
• Member Project Spotlight - Saigon Newport Corporation (SNP), 44 colossal steel structures, 280 tons, 22 meters long, 3,396.47 CBM – a project of epic proportions!
• DHL air freight volume to rise 6.8% in 2024

Source: Phaata.com (According to Freightwaves)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Service Providers!

Cargo ships pass through the Suez Canal. Photo: iStock/IgorSPb/Phaata

While it looked like the Red Sea shipping route would soon be restored by early 2025, much of the global commercial fleet is now expected to stay away from Yemeni waters for the foreseeable future as the security situation in the region continues to deteriorate.

Escalating conflict in the Middle East and the threat to shipping

The Israeli military has launched large-scale airstrikes on the Gaza Strip after talks to extend the ceasefire collapsed – the most significant escalation since the ceasefire began on January 19.

Following this development, Yemen’s Houthi rebels are expected to take more aggressive action at sea, particularly in response to Israel’s actions and new US airstrikes on Yemen.

Houthi leader Abdul Malik al-Houthi said his forces would attack US ships in the Red Sea in response to the ongoing US airstrikes on Yemen over the weekend.

On March 18, the Houthis attacked a US aircraft carrier strike group, marking the third such attack in just 48 hours.

Earlier this month, the Houthis said they would continue to attack ships linked to Israel, citing Israel’s refusal to allow humanitarian aid into Gaza.

Impact on shipping and insurance costs

Jack Kennedy, country risk specialist for the Middle East & North Africa (MENA) region at S&P Global Market Intelligence, warned that the resumption of US airstrikes would increase the risk of Houthi attacks on US and allied warships in the Red Sea and the Gulf of Aden.

He stressed that all commercial vessels transiting the region face great risk due to the unpredictability of the Houthis. Data shows that 63% of the ships attacked had no clear link to the US, UK or Israel. While the US claims to aim to protect freedom of navigation, the Houthis’ decentralized missile capabilities and ambitions to expand their regional influence have complicated the situation, threatening the stability of shipping and the region.

According to a report from investment bank Jefferies, the US airstrikes on the Houthis over the weekend could push up insurance costs in the region and cause ships to steer clear of the route.

In addition, the Trump administration is trying to link the Houthi attacks to Iran, increasing the risk that the maritime crisis in the Red Sea will spill over into other vital shipping lanes.

President Donald Trump has said that any attack by the Houthis would be considered an act of Iranian aggression, and Tehran would be held accountable. Lars Jensen, head of Vespucci Maritime, said the strategy could increase the risk of conflict escalation, especially in the Strait of Hormuz.

Red Sea avoidance is on the rise

Although there have been no Houthi attacks on commercial vessels from Yemen in 2025, shipowners continue to avoid the Red Sea, causing huge losses to Egypt's Suez Canal Authority. In fact, avoidance of the region by the world's two largest shipping groups has increased even more this year.

Data from Jefferies shows:
            • Dry bulk vessels avoiding the Red Sea increased by 56% compared to 2023, up from 45% in 2024.
            • Crude tankers diverted from 35% to 48%.
            • Product tankers also avoided the route more, from 45% to 52%.

Container traffic through the Red Sea has fallen by 90% compared to 2023, in line with the trend in 2024. LNG and LPG tankers have also maintained high avoidance rates, at 80% and 74%, respectively.

According to data from ABG Sundal Collier, the number of vessels calling at the Gulf of Aden ports has fallen by 72% compared to the average in 2023, causing serious losses for the Egyptian economy due to a sharp decline in revenue from the Suez Canal.

No signs of the crisis ending soon

Signs are that the shipping crisis in the Red Sea will not be resolved soon. Last month, the European Union (EU) decided to extend the mandate of the EUNAVFOR Aspides maritime security force for another year. The operation, aimed at protecting freedom of navigation in the Red Sea, will last until 28 February 2026, with a budget of more than EUR 17 million.

Whether the Red Sea route can reopen will be a determining factor in the financial performance of many shipping companies this year. Maersk management recently warned that developments in the region could have a significant impact on profits.

Maersk’s EBIT forecast for 2025 ranges from $0 to $3 billion, depending on whether the Red Sea corridor reopens in the middle or end of the year.

According to Sam Chambers of Asia Shipping Media, the instability in maritime security in the region will continue to have a profound impact on global trade and shipping.

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Source: Phaata.com (According to Freightnews)

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