Happy new year for transpac liners as shippers front-load to beat tariffs
Liner operators are reporting full bookings for Far East-Mexico/South America slots into the new year.
Shippers are anxious to get goods from Mexico into the US ahead of president-elect Donald Trump’s impending new tariffs, and before Chinese New Year, in January.
A spokesperson for South Korea’s flagship carrier, HMM, told: "The demand for shipments from the Far East is robust, and we anticipate it to remain strong leading up to the early Chinese New Year holiday.”
Mexico is emerging as a production base due to near-shoring and, ahead of new tariffs, it is anticipated that shipping of semi-finished products will be expedited into the new year.
Korea Customs’ figures show that 263,400 teu was shipped between South Korea and Central/South America in October, up 24% from a year ago.
South Korean exports increased 35%, to 196,300 teu, and imports were up marginally, to 67,100 teu. Most of the container flows were to Mexico, which took in 89,300 teu, up 29%, with Chile, Peru and Brazil the second-, third- and fourth-largest South American trading partners.
Automobiles, electronics and chemicals are South Korea’s main exports to Mexico.
While Far East-South America freight rates have corrected after rising all year, they remain high. Last Friday, the Shanghai Containerised Freight Index showed Shanghai-Santos rates at $5,346/feu, up 2% on the previous week, but below 1 November’s $6,359/feu.
The Korea Composite Container Index showed the South Korea-Latin America East Coast rate averaged $6,021/feu on Monday, down 2% from the previous week, while the South Korea-Latin America West Coast rate averaged $3,807/feu, a 1% dip.
Xeneta chief analyst Peter Sand wrote in a recent blog post that the China-Mexico West Coast lane was “an immature trade”, as opposed to the China-US West Coast route. China-Mexico shipments peaked at 135,724 teu in June and have levelled off.
Mr Sand noted that, while volume growth into Mexico had been exponential in 2021, 2023 and 2024, real container shipments were still lower than mature markets. The volatility could be seen in China-Mexico West Coast rates peaking six times this year, compared with three times for China-USWC rates.
He wrote: “Volumes on this trade show it’s an increasingly attractive option for shippers, but this volatility means it comes with the risk of unpredictable freight spend.”
