Loadstar Leader: Trump Hormuz toll plan catastrophic for box shipping
It has often been observed since the end of February that the US and Israeli ...
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By Alison Koo
Although transpacific freight rates have dipped, cargo volumes remain high, according to Yang Ming chairman Tsai Feng-ming.
At a Maritime Day event on Monday, Dr Tsai added that he believed the market outlook would become clearer once US tariff policy was finalised.
He said: “We remain cautiously optimistic about the market situation in July and August, given that the third quarter is traditionally a peak season.
“The recent drop in freight rates on the Asia-US West Coast route is due to the excessive number of extra loader sailings deployed, but rates remain relatively high, at around $6,000 per teu.”
Chief revenue officer Yeh Wen-chung pointed out that the market was closely watching for policy changes following the imminent expiry of the 10% temporary global tariff imposed by the Trump administration on Friday and subsequent implementation of Section 301 tariffs (10%-12.5%).
He said: “If the tariff rate is confirmed to be around 12%, the impact on the market will not differ significantly from the current situation. August is expected to be supported by the traditional Christmas shipping season, and overall performance should be normal.”
On the ships stranded in the Strait of Hormuz, Dr Tsai said all Yang Ming’s trapped vessels had been freed and deployed on Asia-South America services.
He added: “Whether the vessels return to the Persian Gulf depends on close monitoring of the situation in the Strait of Hormuz. Uncertainty remains high in the short term, and the situation is unlikely to become clear quickly. Ships will not return to the Strait of Hormuz immediately.
Currently, the liner estimates that freight rates will remain above profit levels in the third quarter, with Q4, starting with the Chinese National Day holiday, being a turning point – depending on the US inflation situation and the development of the US-Iran conflict.
Dr Tsai was speaking as Yang Ming confirmed orders for six 13,000 teu ships at Hanwha Ocean, a $1.2bn order approved in March. Deliveries are expected between 2029 and 2030, adding to the seven 15,000 teu ships booked at the South Korean yard and six 8,000 teu ships commissioned from Japan’s Nihon Shipyard.
These orders are mainly fleet renewal rather than aggressive expansion, said Yang Ming. They are intended to replace older mid-sized ships and “modernise its core east–west services”.
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