US containerised imports stuttered in May, with LA handling 0.75m teu in May, 3% down on May 2023, though the total for the first five months of the year was up 18% year-on-year. The Port of LA says that its containerised exports were up 24% year-on-year at 0.13m teu while imports were down 4.5% at 0.39m teu and empties were down 12% year-on-year at 0.24m teu. The National Retail Federation expects total June containerised imports to the US to be around 2.11m teu and for the July figure to be 2.10m teu with a peak forecast for August of 2.17m teu. In meetings with the congressional Republican party, Donald Trump has suggested replacing federal income taxes with trade tariffs. Fears of union action at container ports may be bringing forward inventory decisions. The implications of these policy and labour dispute fears may have spooked retailers into bringing further imports forward, adding fuel to the peak season fire. Average freight rates on containerised traffic from China to US west coast ports went up 39% in the four weeks to June 21, hitting $6,480 per feu. Rates on the China – US east coast voyage rose 29% over the same period to a heady $8,113. These levels were last reported in September 2022 when the market was falling from its mid-pandemic peak. The freight and time charter market conditions that we reported last month have not eased. Trade is growing faster than fleet capacity when measured in available teu days at sea. Liners are reported to be paying over $100,000 a day now for period charters on panamax-sized tonnage. Time charter rates on smaller feeder ships have more than doubled in 2024. For instance a modern 1,700 teu container ship could be hired for a year at around $11,000 a day in January but today would cost as much as $25,000 a day. The increase in operating costs forces liner operators to push up freight rates and indicates that these higher rates will be around for longer than one might have expected. Asia to Europe trade is growing fast too. Brokers Braemar report a 7% increase in trade so far this year. Accordingly, on the Freightos Baltic Index, freight rates per feu from China to North Europe increased 43% over four weeks to June 21, reaching $7,001 per feu. Rates from China to the Mediterranean rose too, adding 27% to reach $7,168. Again, these levels were last witnessed in September 2022. China’s government is making increasingly strident complaints about perceived EU protectionism as the EU continues its research into EV pricing and imports. On June 21, the EU agreed to sit down and discuss with China its plans to impose tariffs on EV imports, which it had earlier in June announced could be as high as 48%. China sells 37% of its global EV exports to the EU, with another 12% going to the UK and another 2% going to the rest of Europe. As Houthi attacks on shipping continue in the Red Sea region, most observers now expect the Suez route to be effectively closed until 2025, especially with the likelihood of an Israel-Lebanon war growing by the day. This means that lines will have to plan for longer voyage times over a longer period, another reason for an uptick in time chartering activity and time charter costs. The containerised freight market in the Atlantic has not kept pace with other regions, with westbound freight rates from Europe to North America falling 3% over the four weeks to June 21, to sit at $1,801 per feu, while eastbound rates fell by 12% to $519 per feu compared to $593 on May 21. There ar