Did You Know That…

 

…Middle East crisis drags on global box volumes.

• MEG disruption cuts 660,000 teu from April volumes, leaving year-to-date growth at 5.1% rather than above 6%

• North America posts surprise rebound, with April imports up 6.2% on strong transpacific recovery

• Asia-Europe volumes strengthen as year-to-date flows rise 14.3% and April demand remains firmly ahead of 2025.

April’s carrier volume figures show MEG disruption continuing to weigh heavily on global box numbers, but the wider market is proving resilient, with transpacific demand rebounding and Asia Europe flows maintaining strong momentum.

…World Cup, TikTok and Christmas drive up container shipping rates. 25% increase: Spot rates in container shipping rose even more sharply this week than in previous weeks, when shipping companies and analysts had already reported that the peak season had started earlier than usual. After rate increases of 3% last week and 15% two weeks ago, the average freight rate on the Shanghai–Rotterdam route surged by a further 25% this week, according to our source.

 

…Our friend Steven Yuan from FS China shared another interesting report:

June 2026 Shipping Freight Surge – Core Drivers & Outlook

Freight rates continue to rise, driven primarily by four converging factors: geopolitical capacity constraints, an early peak-season demand surge, intentional capacity management by carriers, and broad-based cost inflation. These forces have created an acute supply-demand imbalance.

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I. Geopolitical Conflict – Red Sea Crisis Intensifies

(Europe & Red Sea routes most affected)

• Ongoing Houthi attacks continue to disrupt Red Sea transits, forcing approximately 90% of Asia–Europe vessels to reroute via the Cape of Good Hope.

• Voyages are extended by 10–14 days, with fuel consumption rising by 30%.

• This has effectively locked up an estimated 10% of global effective capacity, slowing vessel turnaround times and reducing the active fleet by one-tenth.

• Bunker adjustment factors (BAF) have risen sharply, with fuel surcharges per container increasing by as much as 70% on select routes.

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II. Demand Side – Early Peak Season & Order Reshoring

• Europe routes: Exports of solar PV modules and new energy vehicles (NEVs) have surged. These cargo types are bulky and consume significant vessel space.

• US routes: Driven by the 2026 FIFA World Cup (kicking off June 11) and holiday restocking, retailers are competing for limited space. Rates on both the US West Coast and East Coast have jumped by over 20%.

• Order reshoring: China’s stable supply chain and tariff advantages are drawing orders back from Southeast Asia, further concentrating cargo volumes.

• Peak season brought forward: The traditional July–August peak has shifted to late May, with June volumes even more concentrated.

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III. Supply Side – Shipping Lines Intentionally Reduce Capacity & Cancel Sailings

• In May, 7–8 major sailings on Europe routes were canceled, artificially tightening capacity.

• Carriers are releasing space incrementally, resulting in extreme scarcity and frequent cargo rollovers, which in turn continue to push spot rates higher.

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IV. Cost Side – Fuel, Charter, & Port Charges All Rising

• Rising Middle East tensions have driven up oil prices; fuel now accounts for over 40% of operating costs.

• Large vessel charter rates have rebounded sharply: monthly charter fees for 9,000 TEU vessels have increased by nearly 50%.

• Port congestion in Europe has lengthened queue times, driving up both port charges and detention fees.

 

…MSC’s market share larger than ever; Maersk’s continues to shrink 21.5%. MSC increased its market share in container shipping in May and now holds 21.5% of total global container capacity, a record that no container shipping company in history has ever matched.

 

…Mexico and the European Union (EU) on Friday signed a longawaited Modernized Global Agreement (MGA) as both sides seek to expand trade relations and diversify exports away from the United States

to partially insulate themselves from U.S. tariffs.

 

… Your editor visited Jordan to recruit a strong and reliable associate. More news may be expected soon; here is some general information: Jordan has population of approx. 12 million.

Amman is the capitol, Zarqa and Irbid are other big cities. Main port is Aqaba, located at the Red Sea and is an important hub for cross border transit cargo to surrounding countries like

Syria, Iraq, GCC countries (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman), Palestina, Lebanon, Israel. Because of the closing of Hormuz Street, Aqaba is even more significant for its transit

function because the other routing via Jeddah is complicated due to the long congestion (3 weeks in bonded area) in this port, whereas Aqaba operations are running smoothly and consequently is a better and faster alternative.

 

…Further to a previous article in this newsletter, the first Brazilian truck drivers arrived in Poland. The arrival of the first Brazilian truck driver in Poland is imminent. According to Krystian Luczak, a specialist in transport cost analysis at Logistic, this will be a significant step for international cooperation in the transport sector. Luczak emphasizes that many Europeans know little about the Brazilian transport market but are impressed by the professionalism and skills of Brazilian drivers.

 

…Parcel giant FedEx wants to join forces with China Southern Cargo freight networks. Parcel delivery company FedEx and China Southern Air Logistics (formerly China Southern Cargo) have signed a memorandum of understanding for a large-scale strategic partnership in air cargo operations. A key objective is to capture a larger share of the global air freight market, which is increasingly being dominated by shipments from Chinese online retailers.

…The Hanseatic Global Terminals (HGT) has successfully completed the acquisition of a 50% stake in the terminal project Hanseatic Global Terminals Aracruz S.A. in Brazil. This was announced on June 3, 2026, after all necessary regulatory approvals were granted. The joint venture will be operated in collaboration with the Imetame Group, which is also involved in the development of the new container terminal. The terminal, strategically located in Aracruz in the state of Espírito Santo, is designed by HGT to handle large container ships. It is intended to serve as a hub for foreign trade and provides access to the east coast of Brazil. The planned commissioning of the terminal is scheduled for mid-2028.

…Our esteemed member Felipe Bermudez of TITO Smart Modal Logistics in Brazil shared an article regarding the most powerful economies in Latin America. Latin America is far more than an emerging market — it is one of the world's most strategic economic regions. Rich in natural resources, talent, energy and innovation, the region plays a critical role in global food security, supply chains, and international trade. At the center of this dynamic landscape stands Brazil: Latin America's largest economy, a global leader in agribusiness, energy and commodities, and an increasingly influential partner for businesses seeking growth and long-term opportunities. Understanding Latin America is no longer optional for global leaders. Understanding Brazil is essential.

 

…BYD is losing its spark. The Chinese EV giant is struggling to stay ahead in an industry defined by software. For years visitors to the Shenzhen headquarters of BYD, the world’s largest maker of electric vehicles (EVs), have been treated to an explosive safety demonstration. As they peer into a chamber made with thick protective glass, a drill bores into a conventional EV battery, which erupts into flames. Then one of BYD’s signature “blade” batteries is similarly pierced—without the subsequent blast. BYD was built around batteries. And its founder, Wang Chuanfu, created his car empire using the same rigid vertical integration that made them successful. That entails everything from running its own lithium-processing plants to training its own artificial-intelligence models. On May 28th Mr Wang unveiled a semiconductor, designed in-house, that he claimed was the world’s most powerful for self-driving.

 

…Off to the run in Rotterdam! Breakbulk Europe is coming up! This year, it will take place from June 16 to 18 in Rotterdam. On the morning of June 17, the second day of the fair, the 72nd BUSINESSrun will kick off. The traditional networking event surrounding Breakbulk Europe combines athletic activity with a good cause. Participants can choose between a 5 or 10 km route that runs along the spectacular Rotterdam harbor backdrop. Several EAA members will visit the Show, don’t hesitate to post a message and meet each other at the Breakbulk 2026.

 

…Robots could soon be delivering your pizza. An Estonian startup says its machines are now cheaper than human couriers. If you live in San Francisco, you will often get a glimpse of the future—commuting in a self-driving taxi, say. In Milton Keynes? Not so much. But the English city, best known for its many roundabouts, is the place to go if you want to foresee a world without delivery drivers. It is one of the largest markets for Starship Technologies, an Estonian startup which claims to have cracked the problem of getting robots to deliver groceries more cheaply than people can.

 

…The World Cup will kick-off on June 11 in Mexico City, where one of three opening ceremonies will take place, followed by the first game of the tournament between Mexico and South Africa (2-0). 

Throughout the tournament, matches will be played across the three host countries.

…USA Basketball: Knicks NBA Makes Waves with Exciting Win. In a thrilling matchup that left fans on the edge of their seats, the Knicks NBA team secured a stunning victory on Wednesday night, showcasing their impressive teamwork and skill on the court. The game, held at the vibrant Kick Arena, saw them take on one of their fiercest rivals, and the atmosphere was electric from the tip-off. From the start, Knicks NBA set the pace with aggressive defense and rapid ball movement. Star player Jordan Blake was instrumental, delivering a standout performance with a staggering 35 points, complemented by 10 rebounds and 7 assists. His leadership on the court rallied the team and energized the crowd. The New York Knicks delivered one of the most remarkable playoff performances in franchise history, overcoming a 29-point deficit to secure a stunning victory. Facing what appeared to be an insurmountable challenge, the Knicks refused to quit and gradually chipped away at their opponent's lead through relentless defense, timely shooting, and outstanding teamwork. Our friends and NY Knicks fans, Neal Rosenberg of Rose Containerline (NY, USA) and Ferdi Lems (Jordex Global UAE) were both excited about this sensational climax.

…People who doodle during a boring presentation may remember the content better afterwards.

 

…When octopuses dream, they change color.

 

…Trees sleep too. During the night, many trees subtly droop, with their branches and leaves hanging lower than during the day.

 

Wishing you all a very good weekend ahead !

 

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.