Month in Review – April 2025

Maritime

April 1: Genco CEO Says Trump’s China Ship Fees Will Hammer Farmers, Not China – gCaptain

The largest U.S.-based dry bulk shipper said it is prepared to pass on costs to U.S. exporters or position its ships elsewhere if proposed U.S. fees on Chinese ships go into place.

Genco Shipping & Trading Ltd. has no ships built in the U.S. and does have “a lot of Chinese-built ships,” said CEO John Wobensmith.

“What we are doing is we will either position our ships elsewhere, there’s plenty of global trade,” Wobensmith said. He noted that 10% of revenue comes from the U.S., while 90% is from the rest of the world. “The other way to handle this is passing through to the end user.”

Wobensmith said that suitable U.S.-built ships for dry bulk goods “do not really exist.” While Genco is “very much in favour of building and revitalizing” U.S. shipbuilding, reviving shipyards and finding the workforce could take decades, he said.

April 7: Carriers Ramp Up Cancelled Sailings: Sign of Weaker Volumes or Tactic to Raise Rates? – Drewry

The number of cancelled sailings in March and April on the Transpacific, Transatlantic and Asia-North Europe & Med routes rose to 198 – far more than in the same period of 2024 (135). So, what is going on?

According to Drewry, the increase in the number of sailings that are now being cancelled is particularly high on the Asia-West Coast North America and the Transatlantic routes.

On the Asia-West Coast North America route, carriers normally cancel many sailings in February due to Chinese New Year, but reduce this practice in the following months. But this year, carriers continued to cancel more than 40 Asia-West Coast North America sailings a month in both March and in April.

In Drewry’s opinion, U.S. importers are hesitant to ship from Asia without knowing what new U.S. tariffs will hit them once they clear their goods on arrival in North America. Therefore, after strong volumes in January and February, which included some front-loading, carriers may have anticipated lower shipping volumes and a slowdown in YoY import growth and blanked sailings.

Another factor behind the ramp-up of cancelled sailings may be carrier tactics. While carriers and shippers are currently negotiating new service contracts starting from May 1, some carriers may have cancelled sailings to justify increases in contract rates in a market where capacity seems tight.

April 8: Trump Tariffs See Hundreds of Cancelled Container Bookings a Day from Asia – The Loadstar

Donald Trump’s tariff war has seen several Asian exporters cancelling container bookings, as U.S. cargo receivers are now wary of having to pay higher prices for the goods.

Taiwanese cardboard manufacturers with factories in Vietnam have reported having to cancel as many as 300 container-loads of goods, after the U.S. president slapped a 46% tariff on goods from the country.

Orders for May and beyond are also uncertain.

“Our customers asked if we can reduce our prices by 46% to cancel out the effects of the tariffs, but that’s impossible,” said one manufacturer.

With demand for their goods in doubt, these manufacturers are now operating their factories on reduced hours, having asked workers to work fewer days.

Forwarders say last-minute cancellations are around 300 containers a day, a five-fold increase from the pre-tariff period.

A Linerlytica report says the tariffs have dashed ocean carriers’ efforts to raise transpacific freight rates and left May contract negotiations in limbo.

April 8: U.S. Considers Adjusting Port Fee Plan for Chinese Vessels After Pushback, Sources Say – Yahoo Finance

President Donald Trump’s administration is considering softening its proposed fee on China-linked ships visiting U.S. ports after a flood of negative feedback from industries that said the idea could be economically devastating, according to six sources.

Among the changes under consideration are delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels, according to the six sources with knowledge of the matter.

Not all of the agency’s proposed multimillion-dollar fees for Chinese-built ships to dock at U.S. ports will be implemented and may not be cumulative, U.S. Trade Representative Jamieson Greer told a U.S. Senate Finance Committee hearing.

April 8: In Panama, Hegseth Pledges Cooperation to Counter Chinese “Influence” – The Maritime Executive

On April 8, U.S. Defense Secretary Pete Hegseth visited Panama to deliver a message: He pledged that the United States will “take back” the Panamanian government-operated canal from alleged Chinese influence.

Hegseth acknowledged that “China does not operate this canal,” and he pledged that China will not be allowed to “weaponize” it via infrastructure construction contracts.

“The United States of America will not allow communist China or any other country to threaten the canal’s operation or integrity,” Hegseth said. “The United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades.”

April 8: U.S. Withdraws from Critical IMO Climate Meeting, Threatens Retaliation Over Emissions Pricing – gCaptain

In a dramatic development at the International Maritime Organization’s (IMO) Marine Environment Protection Committee meeting in London, the Trump administration has announced the United States’ withdrawal from crucial maritime decarbonization negotiations taking place this week.

The U.S. government delivered a strongly worded message to IMO delegations, explicitly rejecting any measures that would impose fees on U.S. vessels based on greenhouse gas emissions or fuel choice. The administration further warned it would consider implementing reciprocal measures to offset any charges imposed on American ships.

The IMO’s Net-Zero Framework plans to modify MARPOL Annex VI by implementing both a marine fuel standard and emissions pricing system. Delegates at this week’s MEPC meeting are expected to finalize draft legal text for the measures.

The 2023 IMO GHG Strategy aims to achieve net-zero emissions from international shipping by 2050, with emissions peaking as soon as possible, while considering national circumstances and aligning with Paris Agreement temperature goals.

April 10: U.S. Executive Order: ‘Restoring America’s Maritime Dominance’ – The Loadstar

The U.S. government has pushed ahead with plans to revitalize its shipbuilding industry, after President Trump issued an executive order on April 9 entitled “Restoring America’s Maritime Dominance.”

“The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of government neglect, leading to the decline of a once strong industrial base, while simultaneously empowering our adversaries and eroding United States national security,” says the order.

“Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States.

“Rectifying these issues requires a comprehensive approach that includes securing consistent, predictable, and durable federal funding, making United States-flagged and -built vessels commercially competitive in international commerce, rebuilding America’s maritime manufacturing capabilities (the maritime industrial base), and expanding and strengthening the recruitment, training, and retention of the relevant workforce.”

April 11: IMO Approves World’s First Industry-Wide, Truly Global Carbon Fee – The Maritime Executive

After 10 years of deliberation, IMO member nations have agreed to implement the first global carbon fee for shipping. It is the first UN-administered carbon revenue system of any kind.

At the final day of talks for the Marine Environment Protection Committee’s 83rd meeting, delegates agreed to a set of binding targets for shipping’s greenhouse gas emissions, including intermediate objectives of a 20% to 30% greenhouse emission reduction by 2030, a 70% to 80% reduction by 2040, and net-zero by or around 2050.

Accompanying the targets, delegates passed a set of long-debated technical and economic measures that are intended to incentivize compliance. Rather than an across-the-board carbon levy on all emissions, it is a tiered system of fees and compliance levels, and not all emissions will be taxed.

April 14: Asian Exporters Scramble for Ships and Boxes to Beat 90-Day Tariff Pause – The Loadstar

With the 90-day moratorium on additional tariffs on all U.S. imports, except those from China, Asian manufacturers are rushing to secure sufficient containers and shipping slots. Some are hoping to get a year’s worth of stock out.

Chen Po-chia, chairman of the Taiwan Machine Tool & Accessory Builders’ Association (TMBA), said: “The initial 32% tariff that the U.S. imposed on imports from Taiwan is very unfavourable for us, and now [with the moratorium], the baseline 10% tariff gives us some breathing space. We hope we can ship out the goods quickly in the next few months, but it’s challenging to ensure there’re enough containers and ships at the port, and whether the goods can be loaded on board quickly.”

Several mainline operators have blanked transpacific sailings in response to an expected decline in volumes, although it remains to be seen if these could be reversed following the moratorium.

April 14: B.C. Unions Claim Use of Foreign Workers Threatens Maritime Wages, Workforce Safety – New Westminster Record

Several maritime union leaders claim shipping-related employers may be misusing Ottawa’s foreign worker programs, prompting concerns of wage depreciation and safety challenges in the industry.

“One of the challenges is that the wages that are being offered are lower than any Canadian seafarer, or anyone who would work on a vessel would accept,” said Eric McNeely, provincial president of the BC Ferry and Marine Workers’ Union.

In a letter to the federal Minister of Employment, Workforce Development and Labour, McNeely and four other maritime union leaders suggested that a loophole in Ottawa’s temporary foreign worker program is allowing shipping-related companies to justify hiring foreign workers.

Typically, in order to obtain a Labour Market Impact Assessment that successfully shows that hiring a foreign worker is required, a company must prove a Canadian does not exist to take the job. Companies, say the unions, are using what’s deemed a loosely defined “prevailing wage rate” for positions, but one that doesn’t fairly apply to the additional demands of similar work at sea.

For example, companies may use the prevailing wage for a cook across Canada for an on-board cook position, one where the individual would also be responsible for additional safety procedures.

“A cook could make about the same at [a fast-food restaurant] as they would aboard the ship. So that’s a problem. And what that really does is reduce the interest for future mariners in British Columbia to consider shifting as a viable career path,” said McNeely.

Companies are also only required to give five business days of notice for a position, and if they don’t fill it, they can justify hiring a foreign worker.

April 15: Backhaul Blues and a Gradual Decline in Liner Schedule Reliability – The Loadstar

Liner schedule reliability data continues to show the Gemini Cooperation achieving the highest on-time vessel arrival performance – although it is beginning to trend downwards.

According to the eeSea liner database, which has begun to publish on-time arrival performance on a weekly basis, across all trades the Gemini partners Maersk and Hapag-Lloyd hit an on-time arrival rate of 86% for the first quarter of this year, way ahead of the other vessel sharing agreements (VSAs).

According to the analyst, the Premier Alliance – including MSC as an outside ‘partner’ – came in second, with a 31% on-time arrival average during the first quarter, followed by the Ocean Alliance at 25%, MSC outside its Premier Alliance participation, at 22%, while independent services outside the alliance structure collectively had an on-time arrival rate of 30% on east-west services, including the burgeoning Middle East trades.

April 17: USTR Targets China’s Maritime Dominance with New Fee Structure and U.S.-Build Incentives – gCaptain

The U.S. Trade Representative (USTR) announced last week a comprehensive plan to challenge China’s dominance in maritime sectors and boost American shipbuilding through a targeted fee structure on Chinese vessels and operators.

The action plan will be implemented in two distinct phases.

The first phase begins with a 180-day grace period during which no fees will be charged. Afterwards, the USTR will implement fees on Chinese vessel owners and operators based on net tonnage of vessel capacity per U.S. voyage. The fee basis will be $50 per net ton, increasing annually over 3 years in $30 increments each year, to $140 per net ton in 2028. The fee will be assessed on the first point of entry per rotation/string, and is capped at five assessed fees per year.

The fees will also be applicable on a “non-discriminatory basis,” meaning fees will also apply to operators using Chinese-built vessels, regardless of the operator’s nationality, at a lower rate. For example, for non-Chinese operators of China-built ships, fees will be assessed at a rate of $18 per net ton or $120 per discharged container, whichever is higher. Rates will also increase incrementally by $5 per net ton until 2028, maxing out at $33 per net ton or $250 per container discharged. This fee will also be charged up to five times per year, per vessel.

Individual vessels will face a cap of five assessed fees per year. The fees will also be applied only at the first U.S. port of entry per rotation/string of calls.

Notably, the final action plan excludes previously proposed measures such as the $1 million to $1.5 million flat per port entry fees for operators with high shares of Chinese-built vessels and fees based on future orders of Chinese-built ships.

Phase two of the trade action will focus on the LNG sector.

April 17: Carriers Warn of Delays as Congestion Increases at North Europe’s Ports – The Loadstar

Congestion levels are set to rise at ports across Northern Europe – expect schedule disruption, warned Maersk last week.

The Danish carrier warned its customers of “increasing congestion levels and operational disruptions,” highlighting Antwerp-Bruges and Bremerhaven as particular choke points.

According to maritime intelligence database eeSea, 41% of the vessels at Antwerp are waiting for a berth, with 52 more containerships on their way to the Belgian port. At Bremerhaven, 29% of vessels are waiting, with 27 ships incoming.

According to Kuehne + Nagel, Antwerp is experiencing “heavily disrupted operations.”

April 21: Dramatic Surge of Blank Sailings Between Asia and North America West Coast – Maritime Magazine

According to a new report from Sea-Intelligence, container shipping lines have dramatically increased blank sailings on Transpacific routes as a result of the escalating trade conflict between the U.S. and China.

Sea-Intelligence indicated that the total blanked capacity for weeks 16 to 19 has spiked to 367,800 TEUs, versus just 60,000 TEUs three weeks prior. The Asia-North America West Coast trade lane has seen scheduled capacity decline by 12% compared with six weeks ago, while the Asia-North America East Coast route experienced an even steeper decline of 14%.

“The current political climate is extremely volatile and given that tariffs are being imposed and suspended on an almost daily basis, we assume that both the shipping lines and cargo owners are only adjusting their short-term supply chains for now and waiting for things to settle down before making longer-term network adjustments,” said Alan Murphy, CEO of Sea-Intelligence.

April 23: Transpac Container Service Closures Mount – The Loadstar

As spot freight rates on the transpacific trade continue to weaken, the number of service closures is beginning to mount.

Japanese carrier ONE on April 23 announced that “the resumption of the PS5 service, originally scheduled for May 2025, will be temporarily delayed until further notice.”

Meanwhile, Alphaliner reported that Hong Kong-listed carrier TS Lines had closed its standalone AWC2 service that connected the southern China ports of Nansha, Yantian, Shekou, and Xiamen with Los Angeles.

Falling spot rates were also reportedly behind Zim’s decision to close its ZX2 transpacific express service, which offered a 35-day Shanghai-Ningbo-Long Beach rotation, deploying five ships of 5,500 TEU capacity.

Air

April 10: Air Freight Rates ex-Dhaka Set to Surge After Transshipment Options Are Cut – The Loadstar

Airfreight rates out of Dhaka are expected to surge after India cancelled transshipment access for Bangladeshi exports.

In an announcement on April 8, India’s Ministry of Finance confirmed it had rescinded access to transshipment for “export cargo from Bangladesh destined to third countries through land customs stations to [Indian] ports and airports.”

Responding, one Dhaka-based forwarder said that, unless airlines add capacity from Bangladesh, the short-term outlook is gloomy.

April 21: Air Cargo Faces Potential $22-Billion Revenue Hit Over Three Years When China Tariff Exemption Ends – FreightWaves

U.S. plans to cancel tariff-free access for low-value parcel shipments from China and Hong Kong, coupled with a new 145% tariff rate on Chinese imports, could bleed more than $22 billion in revenue from the air cargo sector over three years and put thousands of online sellers with direct-to-consumer fulfillment models out of business, according to an e-commerce and logistics consulting firm.

Derek Lossing, the founder of Cirrus Global Advisors, has previously said the Trump administration’s recent trade actions against China would “decimate” air cargo out of China because demand for products on the Temu and Shein platforms would plummet. His Seattle-based consultancy has now quantified the downstream effects of the changes on the air cargo sector.

The Cirrus Global Advisors model shows the airfreight industry revenue could contract $22 billion if the White House maintains tariffs at 125% for a substantial period of time, based on assumptions about lower consumer demand, excess airline capacity and downward pressure on yields. The estimate was made before the U.S. clarified that the China tariff rate is actually 145%, to include a previous tariff, but it’s unclear if the higher rate would further drag down industry revenue.

Rail

April 8: Arbitrator Awards 3% Raises for CN Employees Represented by TCRC – FreightWaves

Canadian National train service employees represented by the Teamsters Canada Rail Conference will get a 3% annual raise under an arbitrator’s contract decision. Arbitrator William Kaplan released his decision April 7 on the three-year contract, which runs from January 1, 2024, through December 31, 2026.

When CN and the TCRC were unable to reach a negotiated settlement during their contract talks, the Canada Industrial Relations Board sent the matter to binding arbitration in August 2024 after a brief lockout.

Kaplan urged the railway and union to iron out their differences regarding changes to work rules.

Trucking

April 10: Tariffs and Economic Uncertainty Impacting Truckload Rates, Says Freight Index – Inside Logistics

AFS Logistics and TD Cowen have released the Q2 2025 edition of the TD Cowen/AFS Freight Index, showing continued pressure on truckload pricing, resilient less-than-truckload (LTL) rates and complex parcel pricing strategies by major carriers. The index, which provides predictive pricing insights for truckload, LTL and parcel markets, highlights how economic uncertainty and evolving trade policies are tempering any freight market recovery.

“Tariffs have become the topic du jour in boardrooms and beyond, and combining those policy changes with a cloudy macroeconomic picture is a recipe for the uncertainty and caution that characterize current market sentiment,” said Andy Dyer, CEO of AFS Logistics.

Truckload pricing in Q1 2025 rose slightly due to early inventory pulls, natural disasters and capacity corrections. However, more regional shipments drove down the total cost per shipment to its lowest level in more than three years.

The index projects truckload rates will see a modest quarter-over-quarter dip in Q2, marking the ninth straight quarter of suppressed rates.

LTL rates, meanwhile, continue to defy broader market softness. The cost per shipment rose 1.5 percent quarter-over-quarter in Q1 and is forecast to remain elevated in Q2.

April 15: 70% of Carriers See Freight Drop; Further Tariffs Could Be ‘Breaking Point’: CTA Survey – CTA press release

The ripple effect of U.S. tariffs is being felt throughout all parts of the supply chain, report Canadian trucking carrier members of the Canadian Trucking Alliance.

In a recent survey, executive members of carriers belonging to the CTA or provincial association boards, indicate current business conditions are perilous. Almost 70% of respondents indicate that loads to the U.S. have been cancelled or paused, and include most commodities like lumber, oil products, fertilizers, farming equipment, tires and general food products.

Many report tariffs are essentially bringing trade to a halt, as customers and suppliers struggle to figure out the actual declared product value and who pays for these additional costs, and customers adjust to just-in-time/emergency delivery options to manage costs associated with tariffs.

Alternatively, counter tariffs are seemingly having little effect on Canadian imports from the U.S., as 70% of carriers report no impact on demand for northbound freight.

April 18: B.C. Tribunal Highlights Trucking’s Underground Economy and Labour Law Abuse – Today’s Trucking

The B.C. Employment Standards Tribunal has acknowledged the trucking industry is one of the largest underground economies and international human trafficking rings in the country, according to the Canadian Trucking Alliance (CTA).

Recently, CBC reported on a worker from India, Harminder Singh, who said he paid $25,000 to obtain a job at a truck repair facility in Richmond, B.C., and was then shorted wages. The company was forced to pay him more than $115,000 after the Tribunal ruling.

“The horrific immigration and employment situation that Mr. Singh and his family had to experience is experienced by countless of people coming to Canada each year who want to work in the trucking industry,” said Stephen Laskowski, president and CEO of the CTA.

“CTA has been trying to end this treatment of workers in the trucking industry, but our voice has mostly fallen upon deaf ears in government. Unfortunately, Mr. Singh’s story is one of thousands that is occurring in the trucking industry across Canada.”

The CTA alleged a vast network, including immigration consultants, driver training institutes, job placement firms and trucking companies, exploit foreign workers. In many cases, the scheme charges a worker a ‘head tax.’

While Singh’s employer had to pay him back wages, it was fined only $4,000 for violating the Employment Standards Act.

April 20: Canadian Carriers Cut Head Count Due to Tariff War – Transport Topics

Eight percent of Canadian carriers have already cut head count as a result of the introduction of tariffs by the Trump administration in recent weeks.

However, as much as 70% of the Canadian trucking fleet could see layoffs in the coming months due to the disruption and discord sown by the trade measures, according to a survey of executives conducted by the Canadian Trucking Alliance. In addition, some 60% of carrier executives say a prolonged trade war could put their businesses at serious risk of folding, the trade association said.

Almost 70% of respondents told CTA that loads to the U.S. have been canceled or paused, including shipments of commodities such as lumber, refined products and fertilizer, plus farming equipment, tires and general food products.

April 22: More Than a Third of Driver Applicants Demand to Work Illegally, CTA Survey Finds – Today’s Trucking

The Canadian Trucking Alliance (CTA) has released the results of a national survey, which found more than a third of driver applicants ask to be misclassified as independent contractors. The number is closer to 50% in Ontario, where the so-called Driver Inc. scheme is “rampant,” the alliance noted.

Drivers classified as a personal services business can evade taxes while their employers can sidestep payroll taxes and payment of benefits to their drivers, CTA alleges. However, despite its lobbying efforts, governments at the provincial and federal levels have done little to enforce existing rules.

The survey was taken by 83 carriers representing 10,600 trucks. It included an assessment of nearly 18,000 applications over the past six months from professional truck drivers. An average of 36% said they wanted to be employed under the illegal model, CTA said.

“Even after the carrier companies explained they would not illegally misclassify workers and drivers would need to own their own units to be considered a legal independent contractor, nearly half (49%) refused the job outright,” CTA revealed in a release.

“Alarmingly, half of Ontario carriers said between 50% and 100% of all applicants demanded to work in the underground economy – and 13 carriers said over 75% of those looking for a job would only work as Driver Inc.,” it added.

April 28: Trump Requiring That Truckers Speak and Read English – FreightWaves

President Trump signed an executive order on April 28 requiring that truck drivers be able to speak English or be placed out of service.

Among other requirements, the order “mandates revising out-of-service criteria to ensure drivers violating English proficiency rules are placed out-of-service, enhancing roadway safety,” according to a fact sheet published by the White House.

The order reverses a 2016 Federal Motor Carrier Safety Administration policy change made under the Obama Administration that removed the requirement to place truck drivers out of service for violating federal English Language Proficiency (ELP) rules.

“President Trump believes that English is a non-negotiable safety requirement for professional drivers, as they should be able to read and understand traffic signs; communicate with traffic safety officers, border patrol, agricultural checkpoints and cargo weight-limit station personnel; and provide and receive feedback and directions in English,” the fact sheet states.

CIFFA Advocacy, Communications, Activities

April 24: CIFFA Announces Mahsa Pedrami as 2025 Winner of the Donna Letterio Award – CIFFA press release

CIFFA Corp. announces that Mahsa Pedrami, President of 1UP Cargo, is the 2025 winner of the Donna Letterio Award. CIFFA presented the award to Mahsa at the Toronto Central Gala Dinner at the Pearson Convention Centre on April 24.

CIFFA introduced the annual Donna Letterio Leadership Award in December 2015. The award is granted annually in memory of former CIFFA President Donna Letterio, who passed away in August 2013. The award recognizes a woman in the global freight logistics sector who has demonstrated, as Donna did, professionalism, commitment, leadership and a passion for excellence in her career and in her life. In addition to the award, CIFFA will prepare a cheque for $1,000 in the winner’s name, which will be presented to Bladder Cancer Canada.

Mahsa established 1UP Cargo from the ground up over seven years ago, working with limited resources.

As a former professor at George Brown College, Mahsa helped shape the next generation of logistics professionals by teaching courses on international logistics management, supply chain management, and freight forwarding. Mahsa is also an advocate for women in logistics and actively mentors and encourages women to pursue leadership roles.

April 30: CIFFA Sends Congratulations to Prime Minister Mark Carney

CIFFA has extended its congratulations to Mark Carney on his election as prime minister. We look forward to working collaboratively with his government to strengthen Canada’s supply chains and advance our shared economic goals.

In the letter, we outlined members’ key priorities and identified practical, quick wins that could enhance supply chain fluidity across Canada.