The world of global trade is experiencing whiplash due to the U.S. Supreme Court’s nullification of broad tariffs. On the other hand, the drastic fall in demand following the Lunar New Year resulted in massive blank sailings initiated by the world’s leading carriers. In Panama, APM Terminals has replaced Hutchison Ports due to geopolitical tensions. ZIM workers are threatening to go on strike due to the $4.2B Hapag-Lloyd merger.
Weekly Market Update – Week of February 27, 2026
Tariff Turmoil: Supreme Court Intervenes
The regulatory landscape for global shippers shifted dramatically this week. The U.S. Supreme Court ruled that recent sweeping global tariffs imposed via executive action violated federal law, effectively voiding the measure. However, the U.S. administration immediately retaliated by invoking alternative trade law to implement a temporary 10% to 15% tariff, which requires congressional approval to remain long-term. This legal and political ping-pong has thrown the Transpacific contracting season into chaos as shippers struggle to forecast landed costs, and European counterparts have paused pending trade agreements in response to the volatility.
Blank Sailings Surge Amid Post-Holiday Slump
The ocean freight market has officially hit the post-Lunar New Year wall. With Asian manufacturing currently offline, cargo demand has plummeted, forcing major carriers like MSC, Maersk, and CMA CGM into aggressive capacity management. Industry data shows that over 130 sailings have been cancelled across the Transpacific, Asia-Europe, and Transatlantic trades this month[Sg1.1]—a staggering 120% increase compared to January. This sharp withdrawal of capacity is an attempt to put a floor under sliding spot rates, but it is simultaneously wreaking havoc on schedule reliability, which dropped globally to 62.4% this month.
Labor Unrest Hits Mega-Merger
The shockwaves from last week’s $4.2 billion acquisition of ZIM by German carrier Hapag-Lloyd continue to reverberate. This week, ZIM employees threatened indefinite strikes, seeking job security guarantees and protesting the structural carve-outs required by the deal (including the creation of a separate "New ZIM" for national security purposes). If the strikes materialize, they could immediately paralyze the carrier's operations, exacerbating the already fragile schedule reliability in the Mediterranean and Transpacific trades.
Panama Concession Officially Terminated
In Central America, the Panamanian government has officially seized full control of the Balboa and Cristobal port terminals, formally terminating the long-held concession of Hong Kong-based Hutchison Ports. The transition to the new interim European operator, APM Terminals, is underway. However, the abrupt legal handover continues to cast a shadow over trans-shipment efficiency at the canal, with Chinese state firms continuing to freeze related infrastructure investments in protest of the ouster.
Freight Rate Update
Spot rates continue their downward trajectory across major East-West lanes as the market digests the influx of new vessel deliveries and the seasonal demand lull.
Asia to U.S. West Coast: Rates slipped further, averaging $2,190 per FEU, as carriers struggle to keep prices above breakeven levels.
Asia to U.S. East Coast: Prices remained approximately stagnant at $2,770 per FEU.
Asia to North Europe: Rates remained the same at $2,100 per FEU alongside weakening demand.
Transatlantic (Europe to U.S.): Rates remained unchanged at $1,600 per FEU amid regional capacity reductions.
Short-Term Future Outlook
The market will continue to be in a state of suspended animation until the early part of March. Carriers must prepare for extremely disrupted schedules and delays as the huge blank sailing effect from February continues to impact the world’s supply chains. In addition, the whiplash effect of U.S. tariff policies makes contract negotiations extremely risky; carriers are advised to pursue hybrid pricing agreements until the legal fights over import tariffs are resolved and the Hapag-Lloyd/ZIM merger is stabilized.
