Global Trade Update: Key Issues Shaping October
As supply chains continue to navigate disruption, three developments stand out this month as particularly relevant for businesses operating across international trade.
New Surcharges on China-Built Vessels
From October 14th, new surcharges will apply to China-built vessels calling at U.S. ports. The fees—ranging up to several hundred dollars per container—are expected to place significant cost pressure on carriers such as COSCO and OOCL, with estimates pointing to billions in additional expenses over the next year. For shippers, this could influence pricing, routing choices, and long-term carrier strategies in the transpacific trade.
Severe Port Congestion in Europe
European ports are once again under strain, with congestion reaching critical levels:
- Rotterdam reports delays exceeding 8 days.
- Hamburg is facing compounded disruption due to rail closures.
- Antwerp remains under slot restrictions and labor actions.
- French ports—including Le Havre and Fos-sur-Mer—have seen delays of up to three weeks amid strikes.
For businesses, this means continued unpredictability in lead times, higher detention and demurrage costs, and potential rerouting of shipments.
Freight Rates Under Pressure
Despite resilient trade volumes, global container freight rates have been falling for 13 consecutive weeks. According to Drewry, average spot rates have dropped more than 50% year-on-year, reflecting an ongoing supply–demand imbalance and the weight of excess vessel capacity entering the market. While carriers continue to announce blank sailings in an effort to stabilize pricing, shippers may benefit in the short term from more competitive rates.
What This Means for Businesses
For companies managing global supply chains, these developments underline the importance of flexibility and diversification. While short-term cost relief may come from lower freight rates, structural risks—such as vessel surcharges and port congestion—require proactive planning and agile logistics strategies.
If your business is facing challenges with shipping costs, congestion, or overall supply chain resilience, our team is here to help. Contact us
