Annual contracts are being negotiated between shippers and container shipping lines on the trans-Pacific shipping route. ZIM warns if rates are too low, the carrier will stop shipping.
Spot container freight rates have plummeted from a record high, and ZIM's average freight rates fell 42% year-on-year to $2,122/TEU. Spot rates are down from a year ago and Drewry's World Container Index (WCI) for the week ended March 9 stood at $1,806 a foot, 80% lower than the same period last year.
On that basis, ZIM and other container shipping lines are currently negotiating contract prices on the trans-Pacific route from Asia to the US. In a recent discussion of ZIM's Q4 2022 results, Xavier Destriau, CFO and Executive Vice President of ZIM, described the current situation as "unique" like like the moving picture of a pendulum, in which the unusual market situation of the past two years has now moved “very strongly in the opposite direction”.
“I think both shippers and carriers know that there is a space in between that is a natural equilibrium that we should all be aiming for,” he said. However, if this does not happen and shippers insist on extremely low rates, there is a warning of a serious impact on service levels."
“Otherwise, the disruption could also affect shippers. If we do not receive a price that we believe is reasonable to continue shipping, we will stop shipping, and then if we stop shipping that may have a stronger impact on our ability to ship. secure the supply chain of their customers,” warned Destriau.
As the negotiations are going on now and ZIM has contracted most of its customers both in terms of quantity and price, and Destriau has given a positive picture of those negotiations.
“What we heard today from our customers is that they are very satisfied with ZIM and we have received a lot of positive feedback and comments about us being the first shipping line to launch the service. LNG [Fueled] on the Asia route to the US east coast. And that resonates very strongly with our customers,” he said.
“So now we hope that it translates into final negotiations on rates at a level that both shippers and we are happy with.”
ZIM is looking at a split ratio of about 50-50 between contract and spot commodities, but the final rate will depend on where negotiations end with customers. “If rates are not satisfactory to us, we may reconsider that percentage allocation and agree to more exposure to the spot market. We think the second half will be better than the first."
On the outcome of the negotiations, Destriau said: “It is still a few weeks before we finalize the negotiations on the freight contract whether we will end up above, below, close to the price. immediate delivery, it remains to be seen.”
After two hot years driven by e-commerce and disruption in sea freight, the air-cargo market in 2025 is slowing as supply and demand gradually normalize, belly-capacity (passenger-aircraft freight space) recovers and trade policies fluctuate. For Vietnamese companies exporting high-value goods, this is the time to re-calculate the “sea-air mix” to optimize cost, time and shipment certainty.
From January 1, 2025, the FuelEU Maritime regulation officially takes effect, requiring ships to reduce their “well-to-wake” greenhouse gas intensity by 2% compared to the 2020 baseline, with targets rising progressively until 2050. As a result, “green” costs—including scarce alternative fuels, compliance fees, verification expenses, and carbon-related surcharges—are now clearly reflected in the invoices issued by carriers and shippers. FuelEU does not mandate the use of any specific fuel. Instead, it allows operators to choose the optimal combination of solutions—such as blended biofuels, LNG/bio-LNG, wind-assisted propulsion, or operational optimization—as long as the required emission intensity is achieved. In practice, on major European trade lanes, many carriers have already begun introducing separate “Green Compliance Surcharges” rather than incorporating all environmental costs into traditional bunker surcharges.
Outside the United States, global demand for Chinese products is hitting new highs. Despite being a major target of U.S. tariffs, China has strengthened its trade relationships across Africa, Southeast Asia, and Europe in 2025. While China cements its role as a global export leader, the U.S. is increasingly shifting its focus toward self-reliance.
On the occasion of Vietnamese Teachers’ Day 20/11, Glotrans Vietnam would like to extend our warmest and most respectful greetings to all teachers, trainers, and everyone who tirelessly dedicates themselves to the mission of imparting knowledge.
Glotrans Vietnam is honored to take part in the FIATA World Congress 2025 – the flagship annual event organized by the International Federation of Freight Forwarders Associations (FIATA). This congress gathers leading organizations, experts, and enterprises in the global logistics and international freight forwarding industry.
Recently, Glotrans Vietnam once again affirmed its capability in the field of Project Cargo transportation by successfully completing a special shipment from Shanghai, China to Cat Lai Port, Ho Chi Minh City.
Company T (Plaintiff – the Insured) entered into an insurance contract with Company B (Defendant – the Insurer). After the insured event occurred, the Insurer alleged that the Insured had violated its obligation to prevent and mitigate losses. The Arbitral Tribunal acknowledged that such an obligation exists but concluded that the Insured did not breach it.
Under the insurance contract, the premium was to be paid in three installments, and in all three, the insured party was late in payment. When a dispute arose, the insurer (Defendant) argued that the insurance contract had terminated before the insured event occurred due to the late premium payment and therefore refused to make an insurance payout. However, the Arbitral Tribunal held a contrary view.
Company Q (Plaintiff – the Insured) and Company B (Defendant – the Insurer) entered into an insurance contract. After an insured event occurred, the parties could not agree on the value of the loss and therefore conducted an assessment. The unilateral assessment conducted by the Insurer was not accepted, while the independent assessment was only partially recognized.
