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 Additionally, unpredictable ice conditions, extreme weather, and outdated nautical charts increase operational risks.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

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

 

Trump China tariff deadline likely to be extended, Bessent says

Treasury Secretary Scott Bessent indicated that the upcoming trade deadline with China, set to expire on August 12, will likely be extended during talks in Stockholm next week. The U.S. and China previously agreed in May to a 90-day suspension of heavy tariffs to facilitate trade negotiations. Bessent expressed optimism about the state of U.S.-China trade relations, noting progress and a constructive dialogue. The Stockholm talks, hosted by Sweden, aim to address issues like China’s manufacturing output, its consumer economy, and its purchase of sanctioned Russian and Iranian oil. This follows earlier tariff reductions after negotiations in Geneva and London, where both nations scaled back tariffs significantly from the 145% and 125% rates imposed by the U.S. and China, respectively.

Details please refer to the CNBC news.

Source: CNBC

Trump announces 10% across-the-board tariffs on all US imports

President Donald Trump on Wednesday said the US will assess a minimum 10% tariff on all imports into the US, although countries the Trump administration views as having an unfair trade imbalance with the US will be hit with much higher levies.

The so-called “reciprocal” tariffs that Trump unveiled Wednesday will be equivalent to half of what the US calculates each individual country imposes, through tariffs and non-tariff barriers, on US exports.

The tariffs vary by country and will go into effect in two stages between April 5 and April 9. Products from countries hit with the baseline 10% tariff will be impacted from April 5, while products from individual countries with specific reciprocal tariffs will be affected from April 9.

Imports from China, for example, will be set at 34%, the European Union at 20% and Vietnam at 46%.

Other tariff levels announced Wednesday are 26% on goods from India, 25% on South Korea and 36% on Thailand. Most South American nations will see a 10% tariff on their exports to the US.

Canada and Mexico have already been hit with 25% tariffs that went into effect Wednesday.

Details please refer to the JOC news.

Source: JOC