THE Shanghai Containerized Freight Index skyrocketed last week as US importers rushed to bring in goods from China. Weekly gains in spot rate assessments were historically high, wrote senior maritime reporter Greg Miller.

The SCFI global index came in at 2,073 points, up 487 points or 31% week on week. This is the second-largest point gain since the SCFI began publishing in 2009, topped only by the 505-point surge in the last week of 2023, at the onset of the Red Sea crisis.

The SCFI Shanghai-US west coast assessment soared by 58% to $5,172 per feu. The $1,897 per feu increase was the largest weekly feu gain on record in this trade lane.

Vessel traffic slows to trickle at Yemen’s stricken ports

Operations at the Houthi-controlled ports of Hodeidah and Al Salif have slowed down markedly following Israeli air strikes earlier last month, but recent port calls into Hodeidah suggest that cargo is still moving, albeit at a reduced pace, senior maritime reporter Tomer Raanan wrote.

An analysis of Lloyd’s List Intelligence vessel-tracking data shows no new traceable port calls by cargo-carrying vessels in Al Salif since the air strikes, while Hodeidah has seen a six-day halt in new arrivals and muted resumption thereafter. As of May 28, there were two vessels berthed at each of the two ports that were there prior to the aerial raids on May 16, which followed Israeli air strikes on May 5.

For both ports, that is the lowest level of new vessel arrivals over the past 17 months.

VLCC rates sink back to January levels but hope persists for summer strength

There is the bullish story on crude tankers — it’s about to get better; the good times are nigh — and then there are the rates themselves, reported Greg Miller.

The bullish thesis is that Opec+ will continue to unwind production cuts, capacity growth is limited, the crude business is not directly impacted by the trade war, and lower oil prices should induce inventory building.

As for spot rates, they’re falling — and the seasonally weak summer stretch lies ahead.

Transpacific carriers rush to redeploy tonnage amid demand surge

Transpacific carriers are rushing to add more capacity on the trade lane to capitalise on a surge in cargo demand prompted by the temporary pause of the China-US trade war, wrote deputy editor Linton Nightingale.

Analyst Sea-Intelligence has noted a 5% injection of liner capacity on the trunk east-west trade to the US west coast over the past week alone. This though is just the beginning. Carriers are expected to look to maximise tonnage on the route in the coming weeks, as the market fundamentals on the trade shift decisively.

Earlier last month, following talks in Geneva, Switzerland, the US and China agreed a 90-day reprieve on reciprocal tariffs, effectively granting a window of opportunity for shippers to shift the mass of Chinese cargo bound for the US, which had been lying in wait until some form of trade truce was reached.

Boxship sale and purchase activity heats up as carriers buy more chartered tonnage

Container line operators are continuing to buy up boxships from tonnage providers as they seek to reduce their reliance on the charter market, wrote markets editor Rob Willmington.

The world’s largest container line operator Mediterranean Shipping Co is said to have purchased nine ships in the past two weeks, to add to four vessels bought earlier in the month.

They include seven panamax sister vessels which have been on time charter to MSC for the past 10 years from non-operating owner SFL.

Sales of China-built secondhand bulkers stabilise after USTR levy update

Following the dilution of original port levy proposals by the US Trade Representative on China-built ships, interest in buying secondhand bulk carriers constructed by Chinese shipyards has returned, reported Rob Willmington.

In April, the USTR announced that only ships with a capacity above 80,000 dwt and owned by China-domiciled companies would be charged port levies. 

The watering down of the USTR’s original February proposals means there will now be limited impact from port levies on US dry cargo trades, since most US exports are shipped in vessels of below 80,000 dwt.