Chinese exporters under pressure on higher ocean rates: Dimerco

While many carriers have postponed their peak season surcharge (PSS) implementation from mid-May, they are now expected to apply two separate PSS increases on top of existing long-term fixed rates: $2,000 per FEU effective June 1 and $4,000 per FEU effective June 15.

"Spot FAK rates are expected to be even more volatile, potentially rising to $6,000 per FEU in the first half of June and up to $8,000 per FEU in the second half," according to the latest update from Dimerco.

Eight percent of scheduled sailings on major East-West trade lanes were cancelled in May - 58 out of 692 sailings, the update added based on Drewry's Cancelled Sailings Tracker. "The most impacted route was the Trans-Pacific Eastbound (TPEB), which accounted for 62 percent of the cancellations."

Alvin Fuh, Vice President – Ocean Freight, Dimerco says: "With only a 90-day window to ship, exporters from China are under pressure, dealing with limited equipment, frequent rollovers and escalating freight costs."

Regional market highlights
Taiwan: Major ports in Taiwan may experience tight space for U.S.-bound cargo by mid-to-late June, while carriers may adjust schedules or add extra loader vessels to meet the demand surge. "Rates on Far East to U.S. routes are likely to rise due to strong demand, with booking recommended 2-3 weeks in advance. Rates on Far East to Europe routes may see a slight increase or remain stable as demand recovery in the E.U. remains sluggish. Intra-Asia routes are mostly stable and largely unaffected by recent market shifts."

North China: Carriers have adjusted the schedule and rotation for ships to India and Pakistan to avoid risks, the update added. "Demand for space on export routes from the U.S. has surged, with customers rushing to secure capacity. Rates are expected to rise in the short term. Carriers are adjusting vessel capacity to lift freight rates, with a slight increase anticipated for the Europe route in June."

Hong Kong: Capacity to Penang (PEN), Port Klang (PKL) and Shanghai (SHA) has improved while rates to Asia remain stable. Demand for space on export routes from the U.S. has surged, suggesting an early booking to secure space, the update added.

South Korea: "Carriers are currently reallocating vessels to other lanes like India and the Middle East. The space is tight, and the carriers are trying to increase the ocean freight rate."

Singapore: Reduced U.S. tariffs on China may lead to more cargo moving through transshipment via Singapore. At the same time, there will be less space allocation available from Singapore. This will make space tight in June and likely push rates higher, the update added.

North America/Mexico: "In April, container arrivals at Mexico’s Pacific ports fell by 20 percent, following a six percent increase earlier. The drop was mainly due to stricter customs checks and new U.S. tariffs, which delayed shipments. Docking times for Chinese cargo doubled, causing warehouse shortages and prompting some exporters to abandon goods to avoid U.S. duties. As a result, businesses are rethinking Mexico-China trade routes and looking into alternative markets.

"To support growing trade with Asia, seven mid-sized Asian carriers -Emirates Shipping Line (ESL), KMTC, RCL, SeaLead, Sinokor, Sinotrans and T.S. Lines - launched a joint service in April. The new route connects China, South Korea and Mexico’s West Coast. Each line will deploy one vessel (2,500–3,000 TEUs), with the first ship departing from Shanghai on April 30."

Europe: Port congestion remains a major issue in Europe, causing many carriers to avoid Rotterdam. In Q12025, Antwerp surpassed Rotterdam in container volume (3.4 million TEUs vs. 3.3 million TEUs), mainly because Antwerp's terminal expansions are complete whereas Rotterdam's are still in progress.

Due to the economic situation between China and the U.S., many mainline operators continue to divert capacity from the transpacific to the Asia-North Europe services, the update added.

What to watch
Targeting China’s efforts to dominate the maritime, logistics and shipbuilding sectors, the U.S. Trade Representative (USTR) will implement measures under Section 301, effective October 14, 2025.

Port congestion across Europe has intensified, with average delays now reaching five to six days, the update added. "Bremerhaven faces labour shortages, while low Rhine water levels hinder barge operations from Antwerp. Strikes at key ports like Antwerp-Bruges have worsened the situation, leaving over 100 vessels awaiting service."

With limited alternatives, stakeholders anticipate continued disruptions into the summer months, the update added.