Read also: Maersk Finalizes Order for 20 Dual-Fuel Vessels to Advance Decarbonization Goals

According to IndexBox, Maersk has projected an underlying EBITDA of between $6 billion and $9 billion for the current year, a decline from last year’s EBITDA of $12.1 billion. This projection falls in line with analyst predictions, which estimated an EBITDA of $7.4 billion. The company attributes this anticipated decline to “considerable macroeconomic uncertainties,” including geopolitical tensions and trade policies, which could potentially impact global trade flows.

Maersk highlighted the ever-expanding “list of geopolitical strains on supply chains,” including heightened tariffs on U.S. imports and tighter export controls. Furthermore, potential retaliatory measures by trading partners and alterations in trade policies contribute to the uncertain landscape.

Despite these challenges, Maersk’s quarterly earnings before interest, tax, depreciation, and amortization (EBITDA) reached $3.60 billion, exceeding analyst forecasts of $3.0 billion based on a poll conducted by LSEG. The company continues to navigate complex global economic conditions while delivering robust financial results.

Source: IndexBox Market Intelligence Platform  

The post Maersk Exceeds Q4 Profit Forecasts Amidst Global Trade Uncertainty appeared first on Global Trade Magazine.

Read also: Trump’s Sweeping Tariffs on Mexico, Canada, and China Trigger Global Trade Showdown

Last weekend, Trump announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China. While these measures could potentially decrease the federal budget deficit, the practical challenges of tariff collection might impede this outcome. The IndexBox platform highlights potential revenue from these tariffs; however, Goldman Sachs reports suggest that ingenious tariff-evasion tactics could reduce this forecast by $30 billion.

The most prevalent method of evasion, as identified by Goldman Sachs, is “entrepot trade.” By rerouting goods through third-party countries unaffected by tariffs, exporters maintain their market presence while avoiding additional costs. This trend has been particularly observable in the growing trade statistics of India and Vietnam, which have both increased their exchanges with China while bolstering trade with the U.S.

Additional evasion strategies include underreporting the value of goods or mislabeling products to fit lower tariff categories. The variation in tariff rates across countries and products further incentivizes these practices. As tariffs become more widespread, these methods of circumvention highlight the complex challenges in enforcing trade policies.

Source: IndexBox Market Intelligence Platform  

The post U.S. Tariffs on Foreign Imports: Revenue and Evasion Tactics appeared first on Global Trade Magazine.

Read also: BMW and Yamaha Invest in U.S. Rare Earths Startup

The timing of Zipse’s proposal coincides with the upcoming European Commission talks on the automotive industry’s future, set to commence on January 30. These discussions are critical as European automakers face plant closures and layoffs due to shrinking demand and competition from China.

European Export and Import Landscape

In 2023, Germany dominated the EU’s passenger car export market with exports valued at USD 183.4 billion. Spain (USD 43 billion), Belgium (USD 44.2 billion), Slovakia (USD 34.3 billion), and the Czech Republic (USD 33 billion) also featured prominently among the top exporters. Meanwhile, Germany also led the imports for passenger cars with a value of USD 80.9 billion in 2023, followed by France (USD 47.9 billion), Belgium (USD 44.2 billion), Italy (USD 37.7 billion), and Spain (USD 24.5 billion).

Similarly, the United States emerged as a significant player in the global car export landscape, exporting passenger cars worth USD 26.3 billion in 2023. It was followed by China (USD 16.9 billion) and the United Kingdom (USD 16.3 billion). On the import side, the U.S. imported USD 8.7 billion worth of passenger cars, with Japan (USD 5.9 billion) and China (USD 5.3 billion) also being major importers.

BMW CEO Zipse’s call for reduced tariffs underscores the importance of unhindered trade flow between major economies and the need to mitigate potential disruptions caused by tariff impositions.

Source: IndexBox Market Intelligence Platform  

The post BMW CEO Advocates for EU Tariff Reductions on U.S. Car Imports appeared first on Global Trade Magazine.

Read also: Trucking and Intermodal Industry: Navigating Demand and Capacity Challenges

IndexBox data further supports these findings, reporting that rail intermodal volumes are advancing at an unprecedented rate, with CPKC, Union Pacific, and Canadian National spearheading the expansion. CPKC’s intermodal volume saw a 38% increase, while Union Pacific and Canadian National followed closely with growth figures of 36% and 31%, respectively, compared to the same period last year. Additionally, BNSF experienced a 29% uptick, CSX reported a 28% increase, and Norfolk Southern saw a 20% increase.

Ocean container volumes to the United States have similarly recovered robustly in January 2025, hinting at a broader, sustained recovery pattern. The railroads are strategically adjusting to this surge by striving to maintain their current workforce numbers, with the Big Four U.S. railroads collectively seeing a slight 2% year-over-year decrease in total headcount. This strategic labor management helps enhance operational capacity without necessarily expanding the workforce, as highlighted in recent discussions by industry leaders like Union Pacific CEO Jim Vena.

Despite these advances, the railroad industry acknowledges potential risks that might impede growth, such as capacity limitations and freight price volatility. However, their adaptive strategies, focused on optimizing efficiency, could effectively counter these uncertainties. Meanwhile, diversified commodity growth provides an added safety net, with notable increases in grain, petroleum products, and chemicals reported so far this year.

As the intermodal market progresses through what is typically a low period in the rail industry, its resilience demonstrates a shift in shippers’ inventory strategies and highlights the evolving dynamics of the logistics sector. The coming months will reveal if this enduring strength can withstand the usual winter trough before gearing up for its customary late-fall peak.

Source: IndexBox Market Intelligence Platform  

The post Intermodal Market Experiences Robust Growth in Early 2025 appeared first on Global Trade Magazine.

Read also: Global Shipping Faces Turbulence: Chokepoint Disruptions Threaten Trade and Supply Chains

Following sanctions that affected approximately 160 tankers transporting Russian crude, daily rates for very-large crude carriers (VLCCs) on the Middle East-to-China route soared by 112% to $57,589 last Friday, as per Baltic Exchange data. Similarly, the US Gulf-to-China and West Africa-to-China journeys have experienced jumps of 102% and 90%, respectively.

Amid these developments, Chinese refiners are urgently sourcing crude oil from the Middle East, Africa, and the Americas to offset the shortfall of Russian oil. A VLCC moving from the US Gulf to China was booked last week for $9.5 million, distinctly higher than the low-$7 million range seen in previous months. Moreover, Indian Oil Corp. continues to procure Middle Eastern barrels, further straining the available vessel capacity.

Compounding concerns is the potential for tanker rates to remain high if US President-elect Donald Trump, who is to be inaugurated later today, exerts more pressure on Iran. Junjie Ting, a Singapore-based shipping analyst at Oil Brokerage Ltd., noted, “Rates could hold at these levels if Trump dials up the pressure on Iranian oil shipments, which is more likely than not.”

The heightened demand for VLCCs impacts costs not only for these larger vessels but also for smaller ones such as Suezmax tankers, which can transport about 1 million barrels. This ripple effect is evident in shipping markets globally, with the SSY shipbroker report indicating climbing rates due to increased demand and constrained supply.

Source: IndexBox Market Intelligence Platform  

The post Global Shipping Market Faces Turbulence as Tanker Rates Surge on China Routes appeared first on Global Trade Magazine.

Read also: World Bank Warns of Global Economic Impact Due to Proposed U.S. Tariffs

Import Surge Ahead of Policy Shifts

In December, U.S. seaports handled the equivalent of 451,000 40-foot containers of goods from China, a 14.5% year-over-year increase, according to Descartes Systems Group. This capped a year that saw U.S. imports of products like bedding, toys, and electronics rise 15% compared to 2023.

The increase reflects fears of impending tariffs on finished goods, with Trump having proposed duties ranging from 10% to 60%. Unlike his first term, when tariffs primarily targeted components, experts predict the next wave could focus on consumer items.

“There’s been an uptick in the exports of final goods from China to the U.S. as importers aim to front-run possible tariffs on consumer items,” said Frederic Neumann, Chief Asia Economist at HSBC.

Strategic Stockpiling by Businesses

Companies across sectors are building inventories to mitigate potential tariff impacts. Helen of Troy Ltd., maker of OXO kitchen gadgets and Hydro Flask bottles, has been increasing its stockpile, while MSC Industrial Direct has secured popular items from China and is promoting U.S.-made alternatives.

However, Michael O’Shaughnessy, CEO of Element Electronics Corp., which imports flat-screen TV components and finished goods, warned of logistical constraints. “There’s just no place to put everything,” he said, citing storage and working capital limitations.

Additional Factors Driving Demand

Resilient consumer demand and supply chain disruptions also contributed to the import spike. Safety stockpiling occurred amid Houthi attacks near the Suez Canal, labor disputes at U.S. seaports, and fears of broader trade tensions.

Major retailers like Walmart, identified as ramping up imports, have contributed to category-specific gains. In Q4, U.S. imports of textiles and apparel rose 20.7%, leisure products 15.4%, and consumer electronics 9.6%, according to S&P Global Market Intelligence.

Outlook: Navigating Trade Uncertainty

As Trump’s inauguration looms, companies await clarity on tariff policies. In the meantime, strategic stockpiling and contingency planning remain essential tools for navigating the uncertain trade landscape.

The post U.S. Companies Stockpile Chinese Goods Amid Tariff Uncertainty appeared first on Global Trade Magazine.

Tackling Documentation Overload with AI

Seafarers today face mounting demands from complex safety regulations and documentation. According to Ali Demiral, Chief Technology Officer at WiseStella, this “cognitive load” can create stress, particularly during safety assessments. To address this challenge, WiseStella has developed an AI-powered solution called “Wise-AI,” which uses large language models (LLMs) to analyze historical safety data and deliver actionable insights.

“Wise-AI empowers seafarers and managers to navigate new safety requirements with confidence,” Demiral explains. For instance, if a crew member is unsure about compliance during a self-assessment, Wise-AI can analyze input details and suggest potential problem areas with tailored recommendations.

This proactive approach not only saves time but also deepens seafarers’ understanding of safety protocols. By learning from AI-generated insights, crews can anticipate and prevent issues, promoting safer operations at sea.

Fleet-Wide Benchmarking and Tailored Insights

WiseStella’s platform extends beyond individual vessels, offering fleet-wide benchmarking capabilities. Fleet managers can use data-driven comparisons to identify strengths, address weaknesses, and allocate training and resources more effectively.

“Managers can quickly see how their fleet measures up to industry standards,” Demiral notes. “This enables targeted interventions that improve performance and safety outcomes.”

A Tailored AI Solution with Human Oversight

Unlike generic off-the-shelf systems, WiseStella’s AI technology is custom-built by in-house data scientists and continuously refined for greater accuracy. Importantly, the platform employs a “human-in-the-loop” approach—expert review ensures the reliability of AI-generated outputs, which further enhances the system’s predictive capabilities over time.

“The more data we gather, the smarter Wise-AI becomes at identifying patterns and delivering meaningful insights,” Demiral says. The platform also integrates industry-wide data and published guidance, providing a comprehensive view of best practices and common issues.

Transforming Maritime Safety Management

As the maritime industry adapts to evolving safety regulations, AI-powered tools like Wise-AI are becoming essential. By reducing cognitive stress, enhancing safety awareness, and offering data-driven recommendations, these innovations are reshaping how the industry approaches safety management.

“The goal is to move from reactive responses to proactive solutions,” Demiral emphasizes. “Wise-AI equips seafarers to anticipate challenges and drive continuous improvement.”

With companies like WiseStella leading the charge, AI is poised to play an increasingly critical role in maritime safety. By supporting seafarers and streamlining operations, these solutions are setting new standards for efficiency and resilience in global shipping.

The post How AI is Revolutionizing Safety Management in the Maritime Industry appeared first on Global Trade Magazine.

Read also: US Container Shipping Braces for Headwinds as Peak Season Approaches 

In November, American ports processed 2.17 million twenty-foot equivalent units (TEUs), as per data from the Global Port Tracker. This data set, which excludes the ports of New York and New Jersey, indicates a 3.2% decrease from October figures but marks a substantial 14.7% increase year-over-year. The NRF anticipates December volumes to rise to 2.24 million TEUs, reflecting a 19.2% y/y growth, which could drive the full-year total to 25.6 million TEUs—15.2% higher than 2023’s recorded volumes.

The potential crisis was averted as port employers and union longshoremen reached a consensus on automating container handling, thereby preventing an impending strike post the contract extension expiration on January 15. “The new contract brings certainty and avoids disruptions, and we hope to see it ratified as soon as possible,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold remarked in the release. Due to the agreement’s late finalization, retailers proactively imported spring merchandise to maintain well-stocked inventories amid anticipated disruptions.

The import surge additionally gains momentum from President-elect Trump’s tariff escalation plans, prompting retailers to navigate future consumer cost increments. The long-term ramifications on import levels, however, remain under observation.

Data projects a steady import trajectory into the next year, with January forecasted at 2.16 million TEUs, marking a 10% y/y rise. February might see a downturn by 4.5% to approximately 1.87 million TEUs, primarily due to production halts in Chinese factories for the Lunar New Year. March’s traffic could increase by 10.6% to 2.13 million TEUs; April is expected to rise 8% to 2.18 million TEUs; and May’s figures might reach 2.2 million TEUs, showing a 5.9% gain.

Source: IndexBox Market Intelligence Platform 

The post US Ports Anticipate Strong Finish to Year with Promising 2025 Outlook appeared first on Global Trade Magazine.

Read also: Strike Concerns and Tariff Plans Drive Early Import Surge at U.S. Ports

This breakthrough follows months of tension, including a three-day strike in October that concluded with a temporary contract extension and agreements on wage increases. However, the divisive issue of port automation lingered unresolved until now.

In a joint statement, the parties emphasized the contract’s dual focus on safeguarding jobs and embracing modernization. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports. These measures make operations safer, more efficient, and ready to meet growing demand,” the statement read.

The agreement averts a port crisis during the final days of the Biden administration and as President-elect Donald Trump prepares for his January 20, 2025 inauguration. Trump, a vocal opponent of port automation, has historically supported the ILA, which represents approximately 45,000 longshoremen. He has argued that automation’s cost savings do not justify its impact on American jobs.

USMX, which includes foreign container carriers, direct employers, and port associations operating on the East and Gulf Coasts, has faced increased scrutiny amid shifting shipping patterns. Recent data highlights the disruption caused by labor uncertainties, with West Coast ports handling 10.1% above their 52-month average in November, while East and Gulf Coast ports saw a 3.4% decline.

Industry stakeholders, including the National Retail Federation, anticipate ongoing growth in U.S. container imports, fueled by fears of disruptions and proposed tariff increases by the incoming administration.

While specific terms of the agreement remain confidential pending ratification by ILA members and USMX stakeholders, early reactions have framed the deal as a significant win. By balancing modernization with job protection, the contract is expected to bolster the supply chain, benefiting consumers, businesses, and the broader economy alike.

The post ILA and USMX reach Six-Year Contract Agreement to Secure Stability for U.S. Ports appeared first on Global Trade Magazine.

In a landmark move to enhance maritime trade, the Grimaldi Group has launched the first direct shipping service between Shanghai and Lagos. This groundbreaking initiative is poised to transform logistics for Nigerian importers by eliminating transshipment delays and reducing high logistics costs.

Read also: Maersk Infuses $600 Million into Nigeria’s Port Infrastructure, Bolstering Maritime Trade Expansion

Fastest Transit Time in the Industry

The direct shipping route reduces the journey to just 27 days, bypassing intermediate ports and offering the fastest transit time in the industry. “No transshipment, no delays—this service gives Nigerian importers a reliable and efficient shipping solution,” said Mr. Ascanio Russo, Managing Director of Grimaldi Agency Nigeria and PTML Terminal.

Cutting Costs and Simplifying Logistics

This new service addresses long-standing challenges faced by Nigerian businesses, particularly unnecessary delays and costs associated with transshipment through other ports. By streamlining logistics, the direct route is expected to ease financial pressures, making trade more accessible for businesses of all sizes.

Diverse Cargo and Advanced Vessels

The service, operated through Grimaldi’s PTML Terminal at Tin Can Island Port, will handle a variety of cargo types, including containers, vehicles, heavy machinery, and project cargo. The maiden voyage was carried out by the Great Cotonou, a state-of-the-art G5-class ro-ro multipurpose vessel equipped with advanced technology to enhance cargo handling efficiency and reduce environmental impact.

A Boost for Nigerian Businesses

The initiative has been praised by importers and exporters for its potential to lower shipping costs and improve the ease of doing business. “This is a significant milestone for Nigerian trade, particularly for small and medium enterprises reliant on timely and cost-effective logistics,” said Russo.

Strengthening Nigeria-China Economic Ties

The direct shipping service underscores the growing economic relationship between Nigeria and China. By offering competitive freight rates and efficient logistics, it not only bolsters trade but also positions Nigeria as a critical player in global supply chains.

“This is more than a shipping route; it’s a catalyst for economic growth in both regions. Grimaldi remains committed to providing innovative, world-class solutions for Nigerian businesses,” Russo emphasized.

With its ability to redefine maritime trade standards, this service is set to become a key driver of stronger economic ties and sustainable growth in the maritime sector.

The post Game-Changer: Direct Shipping Service Boosts Nigeria-China Trade appeared first on Global Trade Magazine.