In June, container exports from Asia to Europe surged to 1.59 million TEUs, marking an impressive 8% increase compared to the same period last year, according to data from the Japan Maritime Center (JMC) and the U.K.’s Container Trades Statistics (CTS). This consistent growth, driven primarily by increased exports from China, has been climbing for 16 consecutive months, underscoring the resilience and vitality of trade between these regions.

Breaking down the data by origin, China and Hong Kong together accounted for a significant 1.25 million TEUs, reflecting a 10.5% increase. Southeast Asia contributed 196,474 TEUs, up by 4.1%, while other Northeast Asian economies experienced a decline, with volumes decreasing to 140,450 TEUs, a drop of 5.8%.

On the destination side, North Europe was the largest recipient, taking in one million TEUs, a rise of 10.7%. The Eastern Mediterranean received 295,283 TEUs, a modest increase of 1.4%, while the Western Mediterranean handled 292,150 TEUs, up by 6.2%.

The JMC attributes this surge to the spike in demand just before the European Commission (EC) imposed higher import tariffs on Chinese electric vehicles (EVs) in July, highlighting the complex and dynamic nature of global trade. As we look ahead, the impacts of such regulatory changes on trade flows warrant close monitoring.

Conversely, container imports from Europe to Asia totalled 537,854 TEUs in June, experiencing a slight 0.1% decline, marking the first year-on-year decrease in two months. By origin, imports from North Europe stood at 367,940 TEUs, down by 1.9%. The Western Mediterranean showed a positive trend with 89,264 TEUs, up by 2.7%, while the Eastern Mediterranean contributed 80,650 TEUs, reflecting a 5.5% increase.

Destination-wise, China received 261,581 TEUs, up by 1.7%, Southeast Asia saw a decrease to 152,923 TEUs, down by 5%, and other Northeast Asian economies received 123,349 TEUs, a 2.4% rise.

Over the first half of the year, exports from Asia to Europe grew by 6.7% to 8.75 million TEUs, while imports from Europe increased slightly by 0.3% to 3.19 million TEUs.

The Urgent Need for Supply Chain Visibility and Climate Impact Software

These fluctuations in global trade underscore the growing complexity and volatility in supply chains. As export and import volumes continue to shift in response to economic, regulatory, and environmental factors, the need for real-time supply chain and climate impact visibility has never been more critical. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must be equipped with advanced software solutions that provide real-time data insights to navigate these challenges effectively.

With the rise in container shipments and the growing emphasis on sustainability, real-time data can help BCOs and LSPs make informed, business-critical decisions to counteract disruptions and mitigate the environmental impact of their supply chains. By leveraging these insights, companies can enhance their operational resilience, ensure compliance with environmental regulations, and ultimately secure a competitive edge in the global market.

In an era where every decision counts, the integration of supply chain visibility and climate impact software is not just a strategic advantage—it’s a necessity.

The Red Sea is on the brink of an environmental disaster, with the Greek-flagged oil tanker Sounion at the center of the crisis. Struck by missiles launched by Yemen’s Houthi rebels, the tanker, carrying 1 million barrels of crude oil, is now reportedly leaking crude, raising alarms about a potential large-scale oil spill that could wreak havoc on the region’s delicate marine ecosystem.

The Sounion, a 274-metre-long vessel owned by Greece-based Delta Tankers, was immobilised following the attack last Wednesday, which occurred 77 nautical miles west of the Yemeni port of Hodeidah. Since then, efforts to salvage the tanker have been fraught with challenges. The Houthis, who have waged a series of attacks on international shipping in the Red Sea, have continued to threaten vessels attempting to rescue the stricken tanker, forcing salvage crews to withdraw.

Pentagon press secretary Major General Patrick Ryder has warned of a “potential environmental catastrophe” and emphasised the urgent need for action. “It is currently on fire and appears to be leaking oil, presenting both a navigational hazard and a potential environmental catastrophe,” Ryder stated during a press briefing on Tuesday.

This incident underscores the critical need for enhanced supply chain and climate impact visibility, particularly for Beneficial Cargo Owners (BCOs) and logistics service providers (LSPs). The ability to access real-time data insights is essential for making business-critical decisions that could mitigate the risks associated with such crises.

Statistics Paint a Grim Picture

The Sounion carries approximately 150,000 tonnes of crude, equivalent to about 1 million barrels of oil. A large-scale oil spill in the Red Sea would be the first serious environmental damage directly linked to the Houthi campaign against international shipping since November. The potential for a catastrophic oil leak is compounded by the fact that the Houthis have previously sunk two ships, the Rubymar in February and the Tutor in June, resulting in the loss of four mariners’ lives.

A Crisis That Demands Solutions

The apparent oil leak from the Sounion comes after the Houthis posted a video showing a massive explosion on the vessel, claiming responsibility for the attack. Despite efforts by the EU’s Operation Aspides naval force, which rescued the tanker’s 29 crew members the following day, the threat of environmental disaster looms large.

While previous incidents have not resulted in environmental damage on this scale, the situation with the Sounionhighlights the urgent need for BCOs and LSPs to adopt advanced supply chain visibility and climate impact software. These tools can provide real-time data insights, enabling stakeholders to respond swiftly and effectively to such crises, safeguarding both the environment and their supply chains.

Delta Tankers has stated that they are doing everything possible to move the vessel and its cargo, but the situation remains perilous. As the Sounion continues to burn, with “at least” five fires visible on the vessel, the need for comprehensive visibility across the supply chain has never been more apparent.

Sailing around the Cape of Good Hope has long been regarded as a risky venture, even in the age of modern vessels with reinforced hulls and cutting-edge navigation technology. But recent incidents have raised fresh concerns about the suitability of today’s colossal containerships for the volatile conditions in these waters.

In just a few months, the maritime industry has witnessed two major container-loss incidents. The CMA CGM Benjamin Franklin lost 44 containers and sustained damage to another 30 in July. More recently, the CMA CGM Belem saw 99 containers plummet into the ocean, further shaking confidence in shipping through treacherous regions like the Cape. These incidents, coupled with the capsizing and breakup of the bulk carrier Ultra Galaxy in a late-winter storm off Cape Town, underscore the persistent dangers of this notorious route.

The Dynamics of Danger

As the southern hemisphere transitions from winter to spring, the question looms: has the most perilous period passed, or are we entering a new phase of heightened risk? Mike Yarwood, MD of loss prevention at TT Club, notes that this period is one of critical analysis. “I am trying to rationalise whether that means that the most high-risk period of the year has passed, or is passing now, or whether they expect a deterioration through their spring and summer months,” he said.

One of the most treacherous phenomena mariners face in this region is parametric rolling. This occurs when the wavelength of the ocean surface synchronises with a vessel’s rolling motion, amplifying each roll and pushing the ship closer to its limits. As vessels roll violently, container stacks are subject to immense stress, with the risk of containers buckling, collapsing, or toppling overboard.

Shipping lines have developed strategies to mitigate these risks, such as placing heavier containers at the base of stacks. However, a concerning discrepancy – estimated at around 20% – exists between planned stowage and actual stowage, leading to potential imbalances that exacerbate these risks.

Shifting Routes and New Pressures

Historically, vessels could avoid the harsh conditions of the Cape by rerouting through the Suez Canal and Red Sea. However, geopolitical tensions, including Houthi attacks, have made these waters increasingly perilous, forcing many shipping lines to revert to the Cape route despite the dangers.

The situation is further complicated by the ongoing impact of climate change. The Environmental Defence Fund predicts that shipping’s climate-related costs could rise from $3bn annually to a staggering $7.5bn by 2050. Changes in ocean conditions, driven by climate instability, will amplify the risks faced by ships navigating these already-challenging waters.

The Critical Need for Real-Time Visibility

In such volatile environments, relying solely on traditional approaches is no longer enough. Shipping lines, BCOs, and LSPs need real-time visibility software that can deliver actionable insights on supply chain risks. By leveraging real-time data on factors like container weight distribution, route weather patterns, and ocean conditions, firms can make crucial decisions to safeguard their operations. Advanced software tools provide the visibility and predictive insights needed to counteract disruptions and prevent catastrophic losses.

TT Club’s Peregrine Storrs-Fox emphasises the importance of collaborative efforts across the industry to address these challenges: “Ships will never be able to avoid the impact of heavy seas entirely. Consequently, TT, in furtherance of its mission to make the global logistics industry safer, more secure, and more sustainable, continues with its efforts on this issue and urges industry colleagues to do likewise.”

With the FuelEU Maritime regulation set to take effect on 1 January 2025, shipping companies across Europe are bracing for a wave of new penalties tied to carbon intensity reduction targets. The regulation aims to cut the greenhouse gas (GHG) intensity of energy used on ships, with increasingly stringent targets every five years. Shipping lines are left grappling with how to meet these requirements while balancing compliance costs.

The regulation applies to all energy used on voyages and port calls within the EU, and even covers 50% of the energy used on voyages in and out of the region. Companies can either pay a FuelEU penalty or take proactive steps to reduce their GHG intensity within acceptable limits. Among the solutions are adopting biofuels, using LNG/LPG, or exploring the pooling mechanism, where ships that overperform can help offset underperforming vessels.

The Costs of Non-Compliance: A Growing Concern

While these strategies offer paths to compliance, a significant number of shipping companies, particularly smaller operators, are simply planning to pay the penalty instead. Albrecht Grell, Managing Director at Hamburg-based maritime intelligence company OceanScore, warns that this approach is short-sighted. “Not only will penalties escalate, but pushing compliance deficits into future years through borrowing will incur interest and prove increasingly costly,” he explained.

The current penalty of €2,400 per tonne of very-low sulphur fuel oil equivalent (VLSFOe) over the intensity targets is set to rise by 10% annually, reaching €3,360 by 2029 for those that remain non-compliant. For shipping companies already under financial pressure, these increasing costs could be crippling.

Exploring Viable Compliance Strategies

Grell urges companies to explore biofuels and pooling as more commercially viable ways to manage compliance. The market dynamics driving the availability of surplus capacity will dictate the price of pooling slots, offering both risks and rewards for those who understand them. Grell emphasised that the pooling mechanism doesn’t just help a company manage its own fleet’s deficits but also allows shipowners to monetise surplus capacity by sharing it with third-party vessels—a “commercially sound option” that could offset the higher costs of compliant fuels.

Friederike Hesse, co-founder and Managing Director of maritime carbon solutions platform zero44, highlighted that the optimal compliance strategy will vary for each company. Key factors include trading patterns, EU exposure, sustainable fuel availability, and the fluctuating costs of traditional versus compliant fuels. Hesse noted, “Many of these factors change throughout the year… Optimising FuelEU will be a continuous effort, requiring companies to track all available compliance options and adapt their strategies dynamically.”

The Critical Role of Real-Time Data and Supply Chain Visibility

In an increasingly complex regulatory landscape, real-time visibility and supply chain monitoring tools are becoming essential. For shipping companies, logistics service providers (LSPs), and beneficial cargo owners (BCOs), understanding how fluctuations in compliance options, fuel prices, and carbon intensity impact their operations is critical. Implementing data-driven software solutions can help stakeholders make informed, timely decisions to avoid penalties and maintain profitability.

These platforms enable continuous monitoring of compliance performance, allow companies to predict future deficits, and assess the real-time economic impact of different strategies. The ability to adapt quickly to market conditions, while staying aligned with environmental regulations, is not just an operational advantage but a strategic necessity.

The Path Ahead: Balancing Costs, Compliance, and Climate Impact

As the FuelEU Maritime regulation looms, the shipping industry faces a pivotal moment. Whether by adopting cleaner fuels, leveraging pooling mechanisms, or integrating real-time visibility tools, companies must find the balance between cost-efficiency and regulatory compliance. The right strategy could not only save costs but also open new opportunities in an increasingly sustainability-driven market.

A series of recent incidents involving explosions and fires on prominent container ships have sparked urgent warnings from China’s Maritime Safety Administration (MSA). In the aftermath of accidents on the Northern Juvenile, Maersk Frankfurt, and YM Mobility, the MSA has called for stricter oversight on the carriage of dangerous goods, urging shipping lines to learn from these tragedies and prioritise safety.

The MSA stated, “Shipping lines must deeply learn the lessons of the accidents, draw inferences from the cases, and resolve to prevent such accidents from happening again.” The call to action comes as the industry grapples with the aftermath of these high-profile disasters.

On 26 May, the 8,814 TEU Northern Juvenile caught fire in its cargo hold while en route to Malaysia’s Port Klang. Operated by CMA CGM, the vessel was 600 nautical miles away when the blaze broke out. The ship, owned by Norddeutsche Reederei, is now undergoing repairs.

Shortly after this event, on 19 July, an explosion rocked the Maersk Frankfurt during its maiden voyage off Goa, India. The Japanese-owned, 5,500 TEU vessel was chartered by Maersk Line. Tragically, the incident claimed the life of one seafarer. The vessel’s owner, Tokei Kaiun, also declared GA.

Just weeks later, another explosion occurred on Yang Ming’s 6,589 TEU YM Mobility at Ningbo, China’s third-busiest container port, on 9 August. The MSA swiftly issued its advisory, stressing that the consequences of neglecting safety protocols are dire, emphasising, “Lives are at stake, and safety must always come first.”

In a worrying trend, yet another explosion occurred a few days later in Colombo, Sri Lanka, this time on the MSC Capetown III, a 2,824 TEU ship built in 2006. While the Maersk Frankfurt incident remains the only one with a fatality, these events are stark reminders of the complex and volatile nature of transporting dangerous goods by sea.

The MSA has strongly warned that operators must fully recognise the “severe and complex situation” regarding the transport of dangerous goods, particularly during the summer months. “Eliminate the mentality of luck, and strengthen the monitoring and rectification of hidden dangers in the transportation of dangerous goods,” the MSA urged. The call to action is clear: shipping companies need to enhance crew members’ safety awareness and sense of responsibility.

The Need for Real-Time Visibility and Data-Driven Decision Making

Beyond safety concerns, these incidents underscore the need for comprehensive visibility and data insights in global supply chains. As supply chains become increasingly complex, real-time data is no longer a luxury but a necessity. Beneficial Cargo Owners (BCOs) and logistics service providers (LSPs) require actionable insights to mitigate the risks associated with transporting dangerous goods and to respond proactively to disruptions.

With the global supply chain ecosystem exposed to both operational and environmental risks, investing in supply chain and climate impact visibility software is essential. Real-time data insights enable stakeholders to make informed decisions, ensuring business continuity while managing unforeseen challenges. Whether dealing with dangerous goods, extreme weather, or unexpected port closures, visibility tools can be the difference between a seamless operation and a costly delay.

The series of disasters affecting the Northern Juvenile, Maersk Frankfurt, YM Mobility, and MSC Capetown IIIare reminders of the high stakes in maritime logistics. As the MSA highlighted, this is not just about preventing accidents but about recognising the need for enhanced visibility across the supply chain. In an environment where the cost of complacency is measured in lives and livelihoods, integrating cutting-edge visibility software is not just good practice—it’s a strategic imperative.

Mediterranean Shipping Company (MSC), the world’s largest container line, has once again expanded its orderbook with a substantial investment in new containerships from Chinese shipyards. As the Swiss-Italian giant widens the gap over its competitors, it continues to prioritise decarbonisation and supply chain resilience.

According to Clarksons’ data, MSC has placed orders for six 19,000 TEU vessels at Shanghai Waigaoqiao Shipbuilding (SWS) and eight 11,500 TEU vessels at Penglai Zhongbai Jinglu Ship Industry (Jinglu). All 14 ships will be dual-fuelled, capable of running on LNG, reflecting MSC’s strategy to balance growth with environmental responsibility. Notably, this is Jinglu’s first foray into constructing large boxships, having primarily built feeder vessels. The commission includes options for an additional four vessels, showcasing MSC’s long-term confidence in market growth.

This fresh wave of orders follows the recent announcement by Zhoushan Changhong International Shipyard, revealing MSC’s order for 12 19,000 TEU LNG dual-fuelled vessels. These are in addition to earlier commitments for ten 11,500 TEU and ten 10,300 TEU ships. Deliveries for all these vessels are expected between 2027 and 2028. While the exact costs remain undisclosed, VesselsValue estimates that a 17,000 TEU LNG-powered ship is priced at around $205 million. With MSC’s ongoing investment spree, the total expenditure could exceed $6 billion.

This marks the first time in nearly a decade that SWS has secured orders for ultra-large vessels, with their last deal involving 20,000 TEU ships for Cosco in 2015. The new orders are part of a broader trend, as evidenced by reports earlier this month that MSC was eyeing an order for ten 21,000 TEU ships at China’s Jiangsu Hantong Ship Heavy Industry—another shipbuilder making its debut in the large container segment.

Currently, MSC’s operational fleet capacity exceeds six million TEU, including 3.07 million TEU on owned ships. The carrier’s orderbook now stands at 1.64 million TEU. In contrast, its closest competitors, Maersk Line and CMA CGM, operate fleets of 4.35 million TEU and 3.8 million TEU respectively. While CMA CGM has also been aggressively expanding, with an orderbook of 1.12 million TEU, MSC remains far ahead in the race for global dominance.

The surge in newbuildings comes despite global shipping turbulence, with the Red Sea crisis adding to market uncertainties. However, Clarksons noted that even as new boxship deliveries hit record levels, all the new capacity is being fully absorbed, highlighting the robustness of demand despite a volatile economic environment. The global containership fleet grew 5.7% in the first half of this year and is projected to grow by 10% overall in 2024, with deliveries hitting an all-time high of 2.9 million TEU.

A critical aspect of this expansion is the focus on decarbonisation. With shipowners exploring alternative fuels to align with stricter environmental regulations, MSC’s shift towards LNG reflects a pragmatic choice. LNG not only has a proven supply base but also positions carriers to meet near-term carbon targets while maintaining operational flexibility.

Leveraging Technology for Smarter Decision-Making in Supply Chains

As MSC ramps up capacity and prioritises sustainability, the need for real-time visibility in supply chains becomes more crucial than ever. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must adapt to a rapidly evolving market where decisions hinge on accurate and timely data. Supply chain visibility software that provides real-time insights into vessel movements, port congestion, and carbon footprints will be critical in enabling these stakeholders to make informed, business-critical decisions.

With rising complexities in global logistics and an increasing focus on sustainability, advanced software solutions can help companies navigate potential disruptions, optimise routes, and better manage inventory flow. Integrating this level of visibility will be key in counteracting the impacts of growing capacity and shifting market dynamics, ensuring that BCOs and LSPs remain agile and competitive.

MSC’s massive investment in new, eco-friendly vessels isn’t just about fleet expansion—it’s about setting a benchmark for the future of shipping. However, to fully capitalise on this growth, stakeholders across the supply chain must embrace technological advancements that offer the real-time insights needed to stay ahead in a fast-changing industry.

Yemen’s Houthi rebels have been targeting merchant shipping in the Red Sea for months, creating significant threats to both human life and global trade. While the world’s focus has been rightly centred on the risk to vessels and cargo, the environmental impact of these disruptions is also substantial—and often overlooked. According to energy trading firm Trafigura, tanker diversions around the Cape of Good Hope due to security concerns in the Red Sea will result in the consumption of an additional 200,000 barrels of fuel oil per day this year. This alone is expected to raise the tanker fleet’s annual emissions by a staggering 4.5 percent.

The Shift to Longer Routes and Its Ripple Effect on the Supply Chain

Despite the risks, many vessel operators still use the Red Sea route between the Indian Ocean and the Mediterranean, as it remains shorter and usually less expensive. The shipping industry has developed best practices to mitigate security threats for Red Sea voyages. However, more ship managers are now recommending the longer but safer route around Africa’s southernmost tip, avoiding the Red Sea entirely.

A significant portion of the container ship fleet has already made this switch, joined by many tankers and gas carriers. However, this detour adds an extra 2,000-3,000 nautical miles to Asia-Europe or Asia-US East Coast voyages. Consultancy Vespucci Maritime estimates that the additional distance sailed by container ships alone each week now exceeds the distance from the Earth to the Moon. To minimise delays, many vessels have increased their speed, further escalating fuel consumption. Trafigura notes that when container ships and other vessel types are factored in, an additional 500,000 barrels of fuel oil per day will be consumed by the shipping industry in 2024.

The Growing Demand for Real-Time Supply Chain Visibility

The surge in fuel consumption and emissions is a wake-up call for the logistics sector, especially for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) who are grappling with the ripple effects on supply chains. The need for real-time visibility software has never been more pressing. Advanced supply chain and climate impact monitoring solutions can provide BCOs and LSPs with critical data insights, enabling them to make informed decisions about route planning, timing, and cost management.

Such solutions can help stakeholders anticipate delays, optimise routing strategies, and assess the carbon impact of their operations. In a volatile environment where shipping routes are frequently disrupted, having access to real-time data becomes essential for maintaining supply chain resilience and minimising unforeseen costs.

Environmental and Economic Implications of the Red Sea Crisis

The environmental impact extends beyond just emissions. The International Energy Agency (IEA) projects a notable increase in global bunker fuel demand due to these diversions—estimated at around 200,000 barrels per day. The increase will be especially evident in regions like Singapore, which serves as a primary hub for bunker fuel on east-west trade routes and is already experiencing congestion tied to the crisis.

These diversions and the resulting fuel consumption underscore the need for more sustainable and adaptive supply chain strategies. Companies that implement visibility tools not only gain the ability to mitigate risks but can also track and reduce their environmental footprint—an increasingly vital consideration in today’s eco-conscious market.

A Strategic Imperative for the Future

As the maritime industry faces ongoing challenges in the Red Sea, the long-term solution lies not only in route adjustments but also in leveraging technology for smarter decision-making. Real-time visibility platforms are set to play a pivotal role in helping BCOs and LSPs navigate the complexities of this crisis while balancing operational efficiency with environmental responsibility.

In summary, while the immediate focus remains on safeguarding shipping operations and cargo, the broader industry must embrace innovations that provide both supply chain stability and climate impact insights. By adopting these tools, businesses can ensure they remain agile and resilient in an increasingly unpredictable global trade landscape.

As nearshoring gains momentum, Mexico has emerged as a key beneficiary of companies shifting supply chains closer to North America. However, industry leaders warn that the country’s potential to fully capitalise on this trend is being undermined by insufficient investment and strategic planning. According to the Mexican Chamber of the Construction Industry (CMIC), these shortcomings are already weighing heavily on the economy.

“Logistical and transportation deficiencies cost Mexico about 169.3 billion pesos ($8.82 billion) in 2023,” said CMIC national president Luis Mendez. He emphasised that significant investment in transport and logistics infrastructure is urgently needed to avoid stalling Mexico’s growth prospects in the nearshoring landscape.

CMIC is advocating for public spending on infrastructure to increase to 5% or 6% of GDP, with a substantial portion allocated to logistics and transport. Priority areas include the modernisation of roads, railways, ports, and airports, as well as sustainable urban mobility systems. These improvements are vital for ensuring the efficient flow of goods and reducing costly delays, especially as international companies increasingly view Mexico as a manufacturing and distribution hub.

Aligning Public and Private Investment for Strategic Growth

In addition to security concerns, inadequate infrastructure is one of the primary deterrents for foreign investors and companies considering Mexico as a production base. While private firms have poured resources into upgrading facilities, such as container terminal expansions, these efforts have not been met with corresponding public investments in road infrastructure and industrial parks. This disconnect between public and private spending is a critical bottleneck that must be addressed.

CMIC and other industry groups are urging the incoming government to prioritise infrastructure projects that enhance global value chains and stimulate regional economic activity. This includes a focus on multimodal logistics connectivity projects designed to eliminate bottlenecks in final-mile services, which are essential for seamless supply chain operations. A more strategic approach is required, one that aligns public infrastructure development with industry needs and market demands.

The Mexican Association of Port, Maritime, and Coastal Infrastructure recently called on the National Port System Administration (Asipona) to collaborate with the private sector on a comprehensive development plan that supports Mexico’s growing role in global trade.

A Wake-Up Call: Manzanillo’s Traffic Jam Highlights Infrastructure Risks

Recent events at the Port of Manzanillo underscore the urgent need for better strategic planning. On 31 July and 1 August, road access to the port was blocked, leaving some 5,000 trucks and vehicles stranded for up to 24 hours. The cause of the gridlock remains disputed, with some attributing it to customs system failures while others blame changes in truck parking arrangements. Regardless of the trigger, the episode highlighted the vulnerability of Mexico’s logistics networks to even minor disruptions.

The port of Manzanillo, Mexico’s largest Pacific gateway, handles over 4,000 truck calls daily, and trucking activity rose 9% year-on-year in the first half of 2023. Despite the port’s throughput growing 4% in the first quarter and box traffic climbing 11.5% to 935,710 TEU, the persistent congestion reflects broader infrastructure challenges that could jeopardise Mexico’s nearshoring advantage.

While investment within the port is progressing—terminal operator Contecon recently unveiled two 60-metre ship-to-shore cranes, reportedly the tallest in North America—external infrastructure, particularly road and rail access, remains a pressing concern. These infrastructure gaps not only slow down operations but also increase costs for businesses relying on Mexico as a logistics hub.

The Role of Supply Chain Visibility and Real-Time Data

As Mexico navigates these challenges, there is a growing need for supply chain visibility solutions that provide real-time data insights. Beneficial Cargo Owners (BCOs) and Freight Forwarders require these tools to make business-critical decisions and adapt swiftly to potential disruptions. Real-time data can help companies counteract the impacts of infrastructure deficiencies, ensuring that supply chains remain resilient despite external challenges. Climate impact visibility software can also assist businesses in aligning their operations with sustainability goals while mitigating the risks associated with environmental factors.

Operators and industry stakeholders hope that the incoming government will adopt a more strategic growth strategy, focusing on comprehensive transport infrastructure development. CMIC has outlined a “strategic project bank” that details the steps needed to support Mexico’s nearshoring momentum, including improved alignment between public agencies and industry players.

As global supply chains continue to grapple with unprecedented challenges, shippers should brace for ongoing volatility in container shipping markets through 2025. Although operations through the Suez Canal have resumed, immediate relief from disruptions and soaring freight rates remains uncertain. The lingering impacts of the Red Sea crisis and broader geopolitical tensions are set to keep the shipping industry on edge, with fluctuating rates and capacity constraints likely to persist.

The potential for continued disruption is significant. If the crisis in the Red Sea endures and a large portion of the global container fleet remains rerouted around southern Africa, global shipping capacity will remain constrained. This persistent pressure on capacity will inevitably lead to further instability, making it difficult for shippers to plan with confidence.

The Ripple Effects of Resuming Suez Canal Operations

Even if the situation in the Middle East stabilises and the Suez Canal fully reopens, the global shipping industry could face a new set of challenges. A sudden influx of ships taking the shortcut through the canal could result in severe port congestion in Europe. This congestion would create a domino effect, disrupting shipping schedules and impacting services arriving from other regions, including Africa, Latin America, and North America.

This bottleneck would delay the normalisation of freight rates, prolonging the period of high costs and uncertainty for shippers. It is only after this congestion is worked through that market rates might begin to decrease, but any reduction is expected to be gradual rather than dramatic.

Looking Forward: What to Expect in 2025 and Beyond

As the industry moves towards 2025, there are signs that the worst of the volatility may be behind us. With the delivery of new vessels increasing capacity, both contract and spot rates are expected to soften, assuming no further major disruptions occur. However, while rates may ease, they are unlikely to return to the extremely low levels seen in late 2023.

The traditional peak season surge in rates, particularly around the Chinese New Year, will likely persist. Nevertheless, due to the steady influx of new vessels, rates in Q3 of 2025 are not expected to reach the record highs of 2024. Shippers should prepare for some relief, but also recognise that market conditions will remain dynamic, with rates adjusting to the evolving balance between supply and demand.

The Importance of Real-Time Supply Chain Visibility

In this environment of ongoing uncertainty, the need for real-time supply chain visibility has never been more critical. Shippers, including Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs), must be equipped with tools to make informed, strategic decisions that can mitigate the impacts of market volatility on their operations.

Implementing advanced supply chain and climate impact visibility software provides the real-time data insights necessary to navigate these challenges. This technology enables stakeholders to track shipments, anticipate delays, and adjust logistics plans on the fly, helping to maintain the resilience and efficiency of their supply chains.

As the container shipping industry faces a future of continued unpredictability, investing in these capabilities will be key to staying competitive. By leveraging real-time data and visibility, firms can better manage risks, optimise operations, and ensure that their supply chains remain robust in the face of ongoing global disruptions. In a market defined by change, adaptability and insight will be the defining factors of success.

As concerns over an intensifying trade war between China and the U.S. mount under the Trump presidency, retailers and manufacturers are scrambling to bring orders forward, further complicating global supply chain dynamics. Vincent Clerc, the chief executive of AP Møller-Maersk, the world’s second-largest container shipping company, recently shed light on these escalating challenges in an interview with the Financial Times.

Clerc revealed that some customers are placing their Christmas orders earlier than usual, driven by fears of potential trade disruptions. “There’s clearly, not only for the US but in general, customers bringing orders forward — because of disruption, because of the potential for a trade war, people would rather have Christmas goods already in the warehouse. It’s hard to say how much is going on though,” he stated.

Navigating Supply Chain Disruptions Post-COVID and Amidst Red Sea Tensions

Global supply chains, which had only just begun to stabilize after the severe disruptions caused by the COVID-19 pandemic, faced new challenges at the end of last year. Houthi attacks in the region led to most vessels avoiding the Red Sea, opting instead to navigate around the Horn of Africa. This unexpected shift further strained logistics networks, impacting delivery schedules and inventory management worldwide.

Despite these challenges, Maersk recently raised its financial guidance for 2024 for the third time since May. The company has benefited from the ongoing disruptions, which have persisted longer than anticipated, alongside higher-than-expected global trade growth. “Each month, it looks like it is getting more and more entrenched,” Clerc said regarding the Red Sea disruption, though he refrained from speculating whether these issues would extend into 2025.

Early Ordering Trends and the Need for Enhanced Supply Chain Visibility

Clerc had previously cautioned customers in June against bringing forward their Christmas orders due to the ongoing disruptions. However, recent warnings from former President Trump about potential high tariffs on Chinese goods have led importers in the U.S. and elsewhere to accelerate their orders, a trend that Clerc confirmed.

The significance of these early ordering trends cannot be understated, particularly as Maersk transports about a fifth of all seaborne freight, making it a bellwether of global trade. Notably, Maersk reported that Chinese exports grew nearly 10 percent year-on-year in Q2, underscoring the resilience and adaptability of global trade despite mounting uncertainties.

Amidst these challenges, the need for advanced supply chain and climate impact visibility software has become more apparent. By providing real-time data insights, such technology can empower Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed, business-critical decisions. These insights are crucial for counteracting potential disruptions and ensuring that supply chains remain resilient in the face of unpredictable global events.

Financial Resilience and Strategic Growth in Uncertain Times

Despite concerns in the stock markets about a possible U.S. recession, Clerc reassured that Maersk does not “see any sign that the US is moving into recessionary territory.” While inventories have risen since the beginning of the year, they remain manageable, with demand holding steady. However, Clerc acknowledged that “one of the big uncertainties is how long demand is going to be as resilient as it is today.”

Maersk’s financial outlook reflects this resilience. The company now expects an underlying operating profit for the full year to be between $3 billion and $5 billion, a significant improvement from its initial forecast of a potential $5 billion loss. This shift is evident in Maersk’s operating profit of $1.1 billion in the first half of 2024, although down from $3.9 billion in the same period in 2023.

In pursuit of long-term growth, Maersk continues to explore acquisitions in its land-based logistics business. This strategic expansion aims to offer a counterweight to its traditional container shipping operations, providing a more diversified service offering in an increasingly complex global trade environment. “We stay open for the right match,” Clerc noted, signalling Maersk’s commitment to strengthening its position as a leader in global logistics.

In a world where supply chain disruptions and geopolitical tensions are becoming the norm, the adoption of real-time visibility software is no longer a luxury but a necessity. By leveraging these tools, BCOs and LSPs can navigate the complexities of modern trade, ensuring that their supply chains remain robust, responsive, and resilient amidst the challenges of today and tomorrow.