The shipping industry's barometer—container freight rates—is weathering a prolonged cold spell. An 11-week consecutive decline has triggered a domino effect across global logistics networks, signaling profound structural shifts in international trade. As profits dwindle and capacity gluts emerge, cross-border e-commerce sellers and logistics providers must navigate an increasingly complex landscape.
Profit Freeze: Container Shipping Enters Downturn
The global container shipping industry faces accelerating profit contraction. Second-quarter 2025 net profits are projected at $4.4 billion—a 56% quarterly plunge and 63.7% annual decline, marking the third consecutive quarterly drop. U.S. import volumes are expected to shrink 5.6% annually, with remaining months potentially seeing 17.5% reductions.
Industry analysts warn third-quarter earnings may deteriorate further to $1.9-2.5 billion. Emerging threats like "exorbitant port fees" could force carriers to reconfigure capacity deployment. The coming year may prove pivotal for market realignment as industry consolidation accelerates.
Land Bridge Boom: China-Vietnam Rail Freight Defies Trends
While ocean freight stumbles, overland routes demonstrate remarkable resilience. Guangxi's China-Vietnam rail network moved over 400,000 tons of export cargo in 2024's first eight months—a 104.4% year-over-year surge. Operational enhancements by Nanning Railway Bureau slashed container approval times to 24 hours while increasing train haulage capacity by 30%.
Pingxiang Port achieved a breakthrough three-hour clearance for imported fruit, handling 21,300 tons from April-August—capturing 28% of national imports spanning 2,000 varieties across 30 provinces. These developments position rail as a vital regional trade complement, particularly for ASEAN market integration.
Air Cargo Expansion: Amazon Air Charts Caribbean Course
Amazon Air continues expanding its global logistics footprint with new weekly flights connecting Miami to Santo Domingo—its Caribbean debut. Operated by 21 Air in partnership with ALK Global Logistics, the route supplements existing Miami-Bogotá daily service. Since its September 2024 launch specializing in heavy freight, Amazon Air's network growth aims to enhance regional e-commerce efficiency.
Rate Divergence: Cross-Pacific Pricing Pressures Emerge
Trans-Pacific rates displayed unusual fragmentation on September 8: West Coast rates held at $2,010/FEU while East Coast stabilized at $2,976/FEU. Large importers leverage bargaining power to suppress costs, but 75% of small West Coast shippers endured 29.2% weekly rate hikes versus modest 2.2% increases for mid-tier contracts. Meanwhile, Far East-North Europe/Mediterranean rates continue sliding, creating unpredictable cost burdens for cross-border sellers.
Steel Silk Road: Chengdu-Europe Rail Powers Belt and Road Trade
The Chengdu-Europe rail corridor strengthens its role as a trade engine, with over 3,400 trains transporting 280,000 TEUs in 2024's first seven months. A September 8 departure from Tuanjie Village Station carrying Chongqing-manufactured vehicles underscored Southwest China's growing pivotal role in Belt and Road connectivity.
Peak Season Prep: Amazon's Smart Relocation Strategy
Ahead of the 2025 holiday rush, Amazon will debut Smart Relocation (SR)—an algorithmic system redistributing inventory to less congested fulfillment centers. Supply chain provider 18Chain now offers dual-region (U.S./EU) services featuring automated delayed shipment handling (waiving placement fees) alongside integrated customs clearance and warehousing solutions.
Air Bridge Acceleration: Zhengzhou-Budapest Cargo Flights Multiply
Zhengzhou-Budapest air freight capacity expands through co-operation between Hungarian Air and Central Plains Longhao Airlines. The route—initially launched May 2023 with four weekly flights (2.35 million tons moved)—now adds five weekly A330-200F rotations with future B777 upgrades planned to boost Central China-Eastern Europe trade flows.
Green Logistics Shift: Greater Bay Area Launches Candy Express
Guangzhou International Port dispatched the Greater Bay Area's first dedicated candy train, pioneering "highway-to-rail" conversion. Partnering with manufacturers, China Railway Guangzhou Group's total logistics package transitions 160,000 annual tons of confectionery to rail with $70/container cost reductions and full insurance coverage—advancing low-carbon supply chains.
Global Skyways: 152 New Cargo Routes Forge Connections
January-August 2024 saw 152 new international cargo routes (15 in August alone), adding 300+ weekly flights (30+ in August). Asia (76 routes) and Europe (55 routes) dominated expansion, transporting e-commerce parcels, precision machinery, and high-value goods to strengthen global trade networks.
European Warehousing: Chinese Firms Counter Tariff Winds
Responding to U.S. trade policies, Chinese enterprises are rapidly acquiring European logistics space. JD.com leased 900,000 sq ft, while YunExpress expands alongside Prologis' five-year commitment for 4.3 million sq ft. Chinese tenants now comprise 20% of CTP's Asian lessees—double prior figures—signaling aggressive European distribution network buildup.
As container shipping's winter persists, adaptability becomes paramount. Those who strategically harness multimodal alternatives and operational innovations may discover competitive advantages amidst the chill.