South China supply chains brace for year’s strongest typhoon

Air and ocean networks in South China will face significant disruption this week as the strongest typhoon of the year bears down on the region.

Super typhoon Ragasa is generating sustained winds of 230 km/h (137 mph) on a track that will take it just south of Hong Kong late Tuesday, with landfall in Guangdong Province on Wednesday.

Container terminals in Shenzhen, Hong Kong and Guangzhou were taking no chances, closing on Monday as the ports prepared for the 19th typhoon to hit South China this year.

Yantian International Container Terminal, Shenzhen’s busiest terminal operator that handles about a quarter of China’s total containerized exports to the US, confirmed it suspended operations at midnight Monday. Hongkong International Terminals said gate operations there ceased early Monday.

Hapag-Lloyd said the typhoon will affect terminal operations in South China this entire week, coming on top of current berthing delays of up to three days at Nansha and Yantian caused by tropical storm Mitag, which made landfall east of Yantian on Friday.

Hong Kong flights suspended

While Hong Kong airport will remain open throughout the storm, Cathay Pacific has announced a 36-hour suspension of all inbound and outbound Hong Kong flights from 6 p.m. Tuesday to 6 a.m. Thursday. Overseas airlines are also canceling inbound flights.

Cathay Pacific said in a customer advisory that flights at Hong Kong airport are expected to gradually resume through Thursday as the typhoon moves into Guangdong Province.

Details please refer to the JOC news.

Source: JOC

Chinese container ship headed to the Arctic – Maersk and CMB.Tech abstain

On September 20, 2025, the Singapore-based, Chinese-controlled liner Sea Legend will launch the first direct container service from China to northern Europe via the Northern Sea Route (NSR), navigating through the Arctic and Russian waters. This route, the shortest shipping lane connecting the Atlantic and Pacific Oceans, significantly reduces transit time compared to traditional routes like the Suez Canal or Cape of Good Hope, which take 30 to 50 days. The Liberia-flagged *Istanbul Bridge* will complete the journey to Hamburg, Amsterdam, and Gdansk in approximately 18 days, avoiding Russian ports. However, the voyage has sparked debate due to environmental, geopolitical, and operational concerns.

The NSR offers substantial time and cost savings, as time and distance are critical in shipping. Sea Legend’s fully booked voyage signals potential interest in this route, with plans to possibly continue in 2026, though this may require investment in new ice-class vessels. These specialized ships are necessary due to the Arctic’s icy conditions, which pose significant challenges. The route’s viability is limited by navigable time windows, shallow straits, and the need for Russian icebreaker assistance, which adds costs and logistical complexity. Additionally, unpredictable ice conditions, extreme weather, and outdated nautical charts increase operational risks.

Environmental concerns are a major point of contention. The Norwegian NGO Bellona has labeled the voyage “unacceptable,” citing significant environmental and geopolitical risks. The *Istanbul Bridge*, a 25-year-old vessel, is not specifically built for Arctic ice conditions, despite having completed a similar trip in 2024 under a different name. Bellona warns that older ships are prone to engine failures and accidents, posing threats to the fragile Arctic ecosystem. The organization has called on European and Norwegian authorities to discourage Russian and Chinese companies from developing the NSR and urged Norwegian emergency response teams to monitor the voyage for potential environmental hazards.

Geopolitical tensions further complicate the route’s adoption. Major container shipping companies, such as Maersk, have shown little interest in the NSR due to the risks associated with Russian exposure amid ongoing geopolitical turmoil and sanctions. Maersk tested the route in 2018 with its ice-class vessel “Venta Maersk” but concluded it was not a commercially viable alternative to existing East-West routes. The company cited environmental risks, operational limitations, and a lack of business activities in Russia as reasons for avoiding the NSR. Similarly, CMB.Tech has sold its ice-class vessels, and MPC Container Ships’ Moritz Fuhrmann noted that large liner companies are wary of the route’s uncertainties, including the high cost of ice-class tonnage and reliance on Russian icebreakers.

Despite these challenges, some see potential for niche development. Aril Moe from the Norwegian Fridtjof Nansen Institute suggests that while the NSR is unlikely to see a “big wave” of transits, certain Chinese cargo owners might find it useful for specific shipments. However, commercial calculations will determine whether companies invest in the necessary vessels. Sea Legend’s voyage is a rare example of a full transit from a non-Russian Pacific port to a non-Russian Atlantic port, as most NSR traffic has historically involved Russian ports or routes between Russia and China.

The broader shipping market remains skeptical. Fuhrmann predicts that even if the Russia-Ukraine conflict resolves, the NSR will not significantly impact global shipping, as most shippers and freight forwarders prefer the reliability of large liner operators, even at higher costs. Chinese players like Sea Legend represent a small fraction of the market, limiting the route’s overall influence. Bellona’s concerns, combined with operational and geopolitical hurdles, suggest that while the NSR may offer time savings, its risks and limitations make widespread adoption unlikely in the near future.

Source: SHIPPINGWATCH

Gemini suspends seasonal trans-Pacific service

The Gemini Cooperation is suspending a relatively new trans-Pacific service, the latest effort by ocean carriers to adjust capacity to meet falling demand and put a floor on US inbound container spot rates, Gemini partners Maersk and Hapag-Lloyd said Wednesday.

The suspension of the T9/WC6 service, which Gemini introduced to take advantage of a tariff-induced volume surge, comes after Maersk and Hapag-Lloyd warned customers of three blank sailings next month, reflecting a fast-shifting market. The last sailing of the TP9, which connected Xiamen, Busan and Long Beach, will depart Busan Sept. 23.

“This service was introduced over the summer to provide more capacity in those traditional peak-volume months, with a port coverage that duplicates what we have on the standing network,” a Maersk spokesperson told the Journal of Commerce Wednesday.

The suspension followed a similar announcement that the Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming would suspend its Pacific South 5 express service.

US retailers forecast import volumes will fall sharply in the fourth quarter and into January, putting pressure on carriers to remove functional capacity.

Carriers are also leaning on blank sailings to manage trans-Pacific capacity, blanking about 10% of deployed tonnage to the US West Coast in September and October, according to maritime intelligence provider eeSea. Almost 18% of deployed capacity from Asia to the East and Gulf coasts will be blanked, up from 12.8% in September.

Details please refer to the JOC news.

Source: JOC

Maersk suspends seasonal trans-Pacific service

Maersk on Wednesday announced it was suspending a relatively new trans-Pacific service, the latest effort by ocean carriers to adjust capacity to meet falling demand and put a floor on US inbound container spot rates.

The suspension of the T9 service, which Maersk introduced to take advantage of a tariff-induced volume surge, comes after Maersk warned customers of three blank sailings next month, reflecting a fast-shifting market. The last sailing of the TP9, which connected Xiamen, Busan and Long Beach, will depart Busan Sept. 23.

“This service was introduced over the summer to provide more capacity in those traditional peak-volume months, with a port coverage that duplicates what we have on the standing network,” a Maersk spokesperson told the Journal of Commerce Wednesday.

The suspension followed a similar announcement that the Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming would suspend its Pacific South 5 express service.

US retailers forecast import volumes will fall sharply in the fourth quarter and into January, putting pressure on carriers to remove functional capacity.

Carriers are also leaning on blank sailings to manage trans-Pacific capacity, blanking about 10% of deployed tonnage to the US West Coast in September and October, according to maritime intelligence provider eeSea. Almost 18% of deployed capacity from Asia to the East and Gulf coasts will be blanked, up from 12.8% in September.

Details please refer to the JOC news.

Source: JOC

ONE revises Asia–North America loops starting October 2025

Ocean Network Express (ONE) will implement adjustments to its Asia–North America services beginning October 2025.

The PS5 (Pacific South Loop 5) was temporarily suspended, with the final voyage being the NYK Constellation V0105E/W, which arrived in Qingdao on 1 September 2025.

The PS4 will add Ningbo to its schedule and remove Xiamen; shipments to Xiamen may instead use the PS7 service.

The PS6 loop will now include Qingdao in the port rotation, commencing with the HMM Topaz V.0008E/W, scheduled to arrive in Qingdao on 27 September 2025.

On the FP2 route, Pusan will be added, starting with the ONE Cygnus V.0022E/W, arriving in Singapore on 29 September 2025.

The EC2 service will expand to incorporate Norfolk, with the initial sailing on the ONE Blue Jay V.0039E/W, arriving in Xiamen on 7 October 2025.

Recently, Hyundai Merchant Marine (HMM) also announced adjustments to its Asia–North America services, including the suspension of one loop and revisions to several others.

Source: PORT TECHNOLOGY

Container lines begin shifting China-built ships out of US loops

Container lines are taking preemptive steps to reduce their exposure to hefty tariffs on Chinese-built and -operated vessels calling US ports that take effect in mid-October.

The Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming Marine Transport is revamping a trans-Pacific service to avoid the US Trade Representative’s fees, and other major carriers are expected to follow suit.

Carriers say the deployment of non-China-built ships won’t be the most efficient for their networks but balk at fees that will initially equate to $1 million per voyage. The savings that come from removing China-built vessels from US services could increase to ultimately more than $500 million per year by April 2028, as the severity of the tariffs ratchets up over the next three years.

Ocean Network Express and HMM have confirmed that the Asia-Mediterranean segment of the current Mediterranean Pacific South 2 (MS2) service will operate as a standalone service, renamed Mediterranean 2 (MD2), starting early next month. The trans-Pacific leg of the MS2 will be incorporated into the alliance’s existing Asia Gulf Express 2 service, which will be rebranded as the Gulf Pacific South 2 (GS2) as of next week, limiting the deployment of 10 Chinese-built ONE container ships currently operating the MS2 service to the shortened MD2 route.

According to ONE service schedules, these vessels include seven 15,300-TEU ships built by Yangzijiang Shipbuilding Group, China’s largest privately owned shipyard, and three built by state-controlled China State Shipbuilding Corp.

Yang Ming Marine Transport has yet to announce the changes, which stand to save ONE an estimated $185 million in tariffs in the first year after the levy is implemented on Oct. 14.

With each of the MS2 deployed vessels assessed at about 74,000 net tons, ONE would face a bill of $3.7 million per ship per voyage, maxing out at $18.5 million for each of the 10 ships — a total of $185 million — after five voyages.

In announcing the MS2 service adjustment, ONE and HMM said the changes would improve connectivity and transit times to certain markets.

HMM said the new Mediterranean Service 2 (MD2) would provide an express service from western Mediterranean to Busan and central China. Similarly, GS2 — which HMM calls the Korea Middle East–Pacific South (KMP) loop — will provide direct services from Dubai to the US West Coast and the US West Coast to Dalian and Xingang, HMM said.

Details please refer to the JOC news.

Source: JOC

Tight Asia feeder capacity causing disruption for export, import shippers

Tight feeder capacity between secondary ports in Asia and the region’s main transshipment hubs are hitting both exports from Asia and imports to the region from the US and Europe, forwarders and carriers say.

Shippers are having to wait up to a month to secure space on some carriers serving Thailand and Indonesia, according to forwarders who spoke with the Journal of Commerce.

The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say. The problems have been compounded by bad weather, including typhoons in China, carriers said.

Forwarder Rhenus Logistics said the feeder capacity shortages began in June and have been the result of a tariff-related cargo surge from Southeast Asia.

Carriers being particular on US export choices

The disruption at transshipment hubs, including those in Asia, has led carriers to pick and choose which export cargo from the US to accept.

“If it’s a direct lane, they have a very high appetite,” said M. Can Fidan, executive vice president of business development at New York-based forwarder MTS Logistics. “If it’s a transshipment or if it is off their hub-and-spoke lanes, then they are not.

A Hong Kong-based freight forwarder said it is fortunate the disruption largely comes after the cargo rush caused by shippers consigning shipments early to beat the Trump administration’s mid-August tariff deadline.

“Transshipping cargo to and from second-tier markets like Thailand, the Philippines and Vietnam is a mess right now, with cargo rolling and delays at the key hub ports,” the source said. “But it would be significantly worse if these countries hadn’t cut tariff deals with the US at the end of July.”

Multiple-day delays

Highlighting congestion and cargo delays at key Asian gateways, CMA CGM, Hapag-Lloyd and Kuehne + Nagel all reported disrupted operations at Singapore, Shanghai, Ningbo, Qingdao and Malaysia’s Port Klang in recent customer advisories.

Shanghai is also heavily congested with a two- to three-day delay at the city center Waigaiqiao terminals and up to a four-day wait at the deepwater Yangshan terminals due to continuing disruption caused by the port’s closure during Typhoon Co-May at the end of July, carriers said. The typhoon was one of three tropical storms to disrupt port operations in eastern and southern China since mid-July.

Hapag-Lloyd said vessels are having to wait up to three days to berth at Ningbo due to the bunching of vessels and up to two days at Qingdao.

Details please refer to the JOC news.

Source: JOC

Toll of US tariffs begins to emerge on unsettled trans-Pacific

The true toll of US tariffs on China is just beginning to be felt on the trans-Pacific.

Months of frontloading that drove an earlier peak season have come to an end, and US retailers are pulling back on ordering for the rest of the year in the face of a slowing US economy and higher tariff costs. Shippers and consignees are also racking up stiffer demurrage and storage bills because demand uncertainty is slowing their pickup of containers from marine terminals.

A sense of uncertainty — if not alarm — about future demand and tariff levels on China has slowed, and even paralyzed, some orders from small and medium-sized importers, four veteran forwarders told the Journal of Commerce. While China bookings haven’t cratered as they did in April when the Trump administration temporarily raised the US tariff level to 145%, forwarders warn of a renewed weakness in the market caused by more than just the end of peak season.

Demurrage levels on the rise

Customers importing lower-value goods have even begun abandoning containers as the cost of the tariffs outweighs what the items can be sold for. Even those who tapped bonded warehouse space face the prospect of no more reprieves in tariffs — and a hefty storage bill, the forwarder source said. Other customers are shifting toward origin-controlled cargo, in which the seller bears all shipping and customs costs until it delivers the goods to the buyer, he said.

Rising demurrage levels at major US ports also speak to increased deterioration in the trans-Pacific market. Demurrage levels have been rising all year but spiked in July to an average of 8.1 days, up from 3.8 days in January, according to data from transportation management visibility software vendor GoComet.

Details please refer to the JOC news.

Source: JOC