COSCO Shipping Holdings, which controls the world’s fourth-largest containership fleet, has reported a sharp increase in earnings for the first quarter of 2025.

Net profit from January to March surged more than 70% year on year to approximately Yuan11.7bn ($1.6bn), according to a stock exchange filing.

The company credited the performance to its proactive response to market uncertainties, the optimisation of its global shipping network, enhanced customer service and a continued focus on digital innovation and sustainability.

Freight rates, however, have been declining since the beginning of the year amid softening demand, despite Red Sea rerouting that has absorbed a substantial portion of global fleet capacity.

Meanwhile, concerns are mounting over major market disruptions driven by the expanding trade war. According to Cofco Futures analyst Ta Linfu, Washington’s push for reciprocal tariffs poses a direct threat to trade with leading manufacturing economies.

“Container shipping routes serving the US, particularly from Asia, are expected to be among the hardest hit,” Ta told Lloyd’s List. “Tariff-driven inflation concerns, along with fears that the Federal Reserve may postpone rate cuts, could lead to a sharp drop in container imports in 2025.”

Tensions appear to be escalating following China’s announcement of a retaliatory 34% tariff on all US goods, and US President Donald Trump’s subsequent threat to impose an additional 50% tariff on Chinese exports.

Ta projected that total US container imports in 2025 may decline by between 4% and 7% compared with the previous year.