Trendwatch: Ocean lines welcome tariff pause, but is the supply chain ready?; Ecommerce likely the front-runner in resurge of transpacific trade after deal; Service chaos from trade ban with India a problem for Pakistan shippers

Ocean lines welcome tariff pause, but is the supply chain ready?

Ocean container lines say they are ready to pivot back to normalized trans-Pacific operations following the 90-day pause in the tariff war between the United States and China.

It’s likely there will be a surge in demand for eastbound vessel capacity on the part of cargo owners, but the outlook is rife with uncertainty.

Ecommerce likely the front-runner in resurge of transpacific trade after deal

Trade flows – including ecommerce – are expected to restart on the transpacific after the initial new tariff agreement between the US and China. 

Talks over the weekend resulted in a huge reduction in tariffs – for 90 days.

From Wednesday, US tariffs on China will be just 10% – plus the 20% fentanyl tariff, while Chinese tariffs on US goods will also be 10%. 

Service chaos from trade ban with India a problem for Pakistan shippers

Pakistan’s main container gateways of Karachi and Port Qasim are reportedly facing serious congestion after mainline carriers halted direct calls there in the wake of the trade ban with India.

The disruption followed a 2 May order by New Delhi, preventing carriers from moving Pakistan-origin cargo through Indian ports – counter restrictions were quickly announced by the Pakistan government.

Qatar Airways Cargo accelerates Australian exports with Virgin Australia partnership

In a new partnership with Virgin Australia, Qatar Airways Cargo will offer customers an additional 180+ tons of cargo capacity per week across Sydney, Brisbane, and Perth — three of Australia’s most critical export hubs.

Qatar Airways Cargo, the world's leading air cargo carrier, is strengthening global trade connections by expanding its capacity to and from Australia through its new Virgin Australia partnership. Qatar Airways Cargo currently offers more than 240 tons of belly cargo capacity each way each week into Australia to key cities Melbourne, Sydney, Brisbane and Perth. With the addition of these Virgin Australia flights, total cargo capacity will increase to more than 400 tons each way, each week.

'Labour arbitrage' says union, but Trump mulls new US flag of convenience

Renewed calls from the Centre for Ocean Policy and Economics (COPE) for a US Virgin Islands (USVI) flag, are under consideration by the Trump Administration.

Functioning similarly to the function of the UK’s Gibraltar flag, allowing vessels – most of them yachts – to enjoy some benefits and protections of the Red Ensign without associated tax commitments, the USVI would allow vessels to fly the US flag while forgoing many of its key requirements.

Egypt’s Suez Canal Offers 15% Discount For Big Container Ships to Win Back Trade

Egypt’s Suez Canal will offer a 15% discount on transit fees for container ships with net tonnage of at least 130,000 metric tons, to encourage trade back now the security situation has eased and help ships offset rising insurance costs, its authorities said on Tuesday.

The discounts will be applied from May 15 for 90 days on container ships that meet the standards, whether full or empty, Suez Canal Authority said in a statement.

Stricken Maersk Sana continues to ‘drift safely’ in western Atlantic

The 21-year-old Maersk Sana remains adrift and a tug from Europe will only arrive ‘in the next several days’ the Danish shipping company said in an update

The 8,450 teu Maersk Sana was struck by an engine room explosion on April 28, injuring three seafarers, one of them seriously. The vessel has continued to drift with only auxiliary power for 15 days.

LNG shipping capacity growth risks climate and financial failure, warns report

According to climate research group Solutions For Our Climate (SFOC), the capacity on the water aggregated with newbuilding tonnage will, if operated at 12 voyages a year, enable the release of more CO2e emissions, of mainly the potent greenhouse gas methane annually than the US.

“The global LNG carrier fleet collectively enables approximately 12.7 billion metric tonnes of CO2e emissions annually when accounting for the lifecycle emissions of transported fossil fuels,” said SFOC in its report, released today entitled, No Room for More, Why LNG Carriers Are a Climate and Financial Risk.