Port fees, shifting trade routes, and LNG surge: global changes
Hapag-Lloyd introduces port disruption fee: what you need to know:
Hapag-Lloyd announced a Work Disruption Surcharge (WDS) starting January 20, 2025, to address potential challenges at U.S. East and Gulf Coast ports. The surcharge, set at $850 for 20-foot containers and $1,700 for 40-foot containers, will apply to cargo gated in on or after that date. It covers costs related to delays, congestion, and additional handling or storage. Containers already in transit or gated in before January 20 won’t incur the fee. Hapag-Lloyd advises customers to prepare by moving containers quickly and exploring alternative options to minimise potential disruptions and ensure smoother cargo operations.
Container trade faces shifts amid geopolitical and market changes:
The global container trade is adapting to shifting supply chains, automation, and geopolitical pressures. Ports like Los Angeles (LA) are experiencing a decline in China’s share of trade, now 43% compared to 57% in 2022, as manufacturers diversify to Southeast Asia, India, and Mexico. Despite this, LA hit record container volumes in 2024, handling over 5.6 million TEUs by July.
Florida's ports are booming. Port Tampa Bay reported 27% container growth, driven by expanded services to Asia and Latin America and infrastructure upgrades. Similarly, Port Everglades and PortMiami are pursuing massive modernisation efforts, including new cranes and net-zero emissions goals.
Nansha, China, remains a major player, with 25 million TEUs handled in 2023 and growing volumes to North America. Meanwhile, Baltimore is recovering from earlier disruptions, nearing pre-incident operational levels, supported by sustainability and capacity projects.
Long Beach and LA are investing billions to boost competitiveness, while Florida’s economic growth and distribution hubs fuel rapid port expansion. Amid automation and evolving trade routes, ports worldwide are adapting to changing cargo flows, rising demand, and geopolitical shifts. These adjustments underscore the resilience of global container trade in uncertain times.
Suez canal expands two-way traffic: modernisation amid challenges:
The Suez Canal Authority has successfully tested two-way traffic in the southern section near Little Bitter Lake, part of a larger effort to modernise despite disruptions caused by Houthi attacks. The expansion adds over six miles of two-way traffic, increasing capacity and safety, while addressing challenges like wind and currents, which contributed to the 2021 Ever Given grounding.
On December 28, multiple vessels, including bulk carriers and container ships, transited the new lane under expert pilots with tug escorts. Navigation buoys were installed, and trial simulations conducted beforehand. The updated section will handle 6–8 additional vessels daily and become operational once navigation charts are updated.
President Abdel Fattah El-Sisi revealed $7 billion in revenue losses from year-long Houthi disruptions but emphasised the need for continued modernisation. Despite rerouting trends, the canal remains vital, with plans to expand by 18 miles and accommodate larger ships. Full recovery is anticipated by 2026, solidifying the Suez Canal’s role in global shipping.
U.S. LNG demand breaks records as Europe seeks new sources:
U.S. natural gas production hit a record 15.2 billion cubic feet in December 2024, driven by rising demand as Europe looks to replace Russian gas. The U.S. remains a key LNG supplier to Europe and Asia. With Russia’s gas flow through Ukraine ending, the U.S. expects increased shipments to Europe this winter. New export facilities like Venture Global’s Plaquemines LNG and Freeport LNG’s 800th shipment highlight the U.S.'s growing role. Despite global competition, U.S. LNG capacity is expected to grow steadily, surpassing 20 billion cubic feet per day by 2026.
Sources:
https://www.maritime-executive.com/article/hapag-lloyd-sets-work-disruption-surcharge-for-us-east-gulf-coast-ports
https://www.maritime-executive.com/magazine/shifting-cargoes-the-container-trade-adapts-to-geopolitical-challenges
https://www.maritime-executive.com/article/video-suez-canal-expands-two-way-traffic-as-part-of-modernization-effort
https://www.maritime-executive.com/article/u-s-lng-gas-demand-hits-new-record-as-europe-looks-for-new-sources