Greg Knowler

The 14-day lead time now in place at Asian hubs would become a “global standard” for vessels seeking bunker fuel should the key waterway remain closed for another month, says S&P Global's Fotios Katsoulas.

But the carrier's ability to continue that cost recovery will depend on the long-term impact of high energy prices on consumer demand and how the industry manages its fast-growing order book, Vincent Clerc says.

The carrier's first-quarter financials, which included a sharp drop in net profit, were generated in a market roiled by ongoing tensions in the Middle East, rising oil prices and increasing operating costs.

Costs rose sharply following the start of the war, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly BAFs.

Spot rates on the corridor hit their highest level of the year in the first half of May, but there are mixed views on whether demand will continue into the summer.

The volume of high-tech goods from Asia to North America increased 70% year over year while US imports of e-commerce declined, according to aviation consultancy Aevean.

With global trade flows shifting toward more volatile and irregular demand patterns, the focus is moving away from planning around fixed seasonal cycles, according to the forwarder.

The UK could become a dumping ground for low-value imports come July, prompting industry leaders to urge the government to accelerate the removal of its de minimis tax reforms.

With the extreme heat expected to continue through the week, there was no clear indication when terminal operations would resume after being halted late Wednesday.

But the terminal's COO says that continued extreme temperatures forecasted for the coming days would keep landside operations under pressure.