Rates hold steady as carriers blank voyages to mitigate softer demand
Container spot freight rates on the main east-west trades continued in much the same vein ...
FDX: WRAPPING UP INPOST TAKEOVERAAPL: DELIVERIESZIM: NEW HAPAG DEAL TALK CONTINUESDHL: HITTING NEW STUNNING LEVEL KNIN: NEW HIGH DSV: ANOTHER PRICE TARGET CUT AMZN: TACO PORTFOLIO ACTIVITYDHL: IT LOOKS GOODDSV: DOWN TO A NEW LOW DSV: REALITY CHECKODFL: PRICING POWER XOM: GREEN PUSHEXPD: MOMENTUM
FDX: WRAPPING UP INPOST TAKEOVERAAPL: DELIVERIESZIM: NEW HAPAG DEAL TALK CONTINUESDHL: HITTING NEW STUNNING LEVEL KNIN: NEW HIGH DSV: ANOTHER PRICE TARGET CUT AMZN: TACO PORTFOLIO ACTIVITYDHL: IT LOOKS GOODDSV: DOWN TO A NEW LOW DSV: REALITY CHECKODFL: PRICING POWER XOM: GREEN PUSHEXPD: MOMENTUM
The launch of a full-blown trade war between the US and Canada, coupled with recent transatlantic talks between Canada and the EU, as well as the UK, is beginning to fundamentally change the country’s freight flows.
The US 50% tariffs on Canadian goods and the targeted response on US imports has provoked Canadian importers to begin looking at sourcing goods that previously came from the US in Europe, Steffen Manz, founder and CEO of forwarder Speed Global Logistics, told The Loadstar.
“When you look at the verticals, the immediate push is coming from industrial manufacturing, automotive components, and consumer packaged goods – essentially, any sector where the margins are razor-thin and recent 25% to 50% tariffs erase profitability.
“We aren’t seeing massive, overnight shifts in total container volumes yet, but rather trial batches. Shippers are testing the waters with a few teu, or less-than-container load (LCL) shipments, from the EU to evaluate transit times and landed costs.
“You can’t just flip a switch; you have to vet new suppliers, align technical specifications, and adjust to longer transit lead times. Moving from a two-day cross-border truckload to a 14-to-21-day ocean voyage means companies have to completely re-engineer their inventory carrying costs and warehouse capacity,” explained Mr Manz.
However, he had noted a growing sense of urgency, in part caused by the immediate disruption to US-Canada cross-border freight flows resulting from the new tariffs.
“It’s been highly disruptive, and messy,” he said.
“On the ground, we’re seeing a lot of friction at the borders. Customs brokers are buried under complex paperwork trying to determine tariff exemptions, and we’ve seen cross-border freight volumes soften on certain lanes as companies pause shipments to see how the dust settles.
“The dollar-for-dollar retaliation has created an atmosphere of tit-for-tat friction. For forwarders, it means asset utilisation for cross-border trucking is fluctuating wildly, and we are spending a lot more time consulting with panicked clients on compliance and tariff mitigation, rather than just moving freight,” he added.
At the same time, however, the considerable political overtures between Canada and the EU recently, as well as the formal entry of the UK into the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP) on 1 September – under which the UK and Canada now trade – could create breathing space for Canadian importers searching for new sourcing options.
“The trade agreements provide an excellent structural safety valve,” Mr Manz said. “The formal entry of the UK into the CPTPP, alongside existing CETA benefits, creates a highly favourable regulatory corridor across the Atlantic. For Canadian importers, it makes British and European goods financially competitive with US alternatives, even when you factor-in ocean freight costs.
“From a forwarder’s perspective, it will inevitably shift the mode mix. We anticipate less cross-border over-the-road (OTR) trucking and an increase in inbound maritime volumes into the ports of Montreal, Saint John, and Halifax, alongside an uptick in transatlantic air freight for high-value, time-sensitive verticals,” he said.
Crucially, after the events of the two years since Donald Trump’s second administration began, the probability of the US-Canada trading relationship returning to its status quo is fast disappearing.
“The motivation to look to Europe is pure survival,” Mr Manz said. “With cross-border trade becoming punitive and unpredictable, EU sourcing under CETA offers duty-free stability, and we absolutely expect this to accelerate through Q4 and into next year.
“Supply chain managers hate volatility more than they hate high costs. Even if the US and Canada magically sat down tomorrow and patched things up, the psychological damage is done – supply chains have deep muscle memory.
“Shippers realised they were dangerously over-exposed to a single trading partner.
“B2B buyers are actively diversifying their supplier portfolios now as a risk-mitigation strategy, meaning the pivot to Europe isn’t a temporary knee-jerk reaction – it’s a structural realignment,” he added.
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Facts Only
* Container spot freight rates on main east-west trades hold steady.
* FDX is wrapping up an InPost takeover.
* AAPL reported deliveries.
* ZIM discussed a new Hapag deal.
* DHL hit a new stunning level.
* KNIN reached a new high.
* DSV cut another price target.
* AMZN showed Taco portfolio activity.
* ODFL noted pricing power.
* XOM showed green push.
* EXPD showed momentum.
* US 50% tariffs on Canadian goods provoked Canadian importers to look at sourcing from Europe.
* Shippers are testing EU shipments with LCL/teu volumes to evaluate costs and transit times.
* Cross-border freight flows softened on some lanes due to shipment pauses.
* Trade agreements provide a regulatory corridor across the Atlantic for Canadian importers.
* The expectation is a shift toward less cross-border over-the-road trucking and more inbound maritime volume into Canadian ports.
Executive Summary
Container spot freight rates remain stable as carriers reduce voyages due to softer demand across the main east-west trade routes. Market activity shows specific corporate movements, including FDX wrapping up an InPost takeover, AAPL deliveries, ZIM discussing a new Hapag deal, DHL hitting a new level, KNIN achieving a new high, DSV cutting price targets, AMZN's Taco portfolio activity, and various updates on pricing power and momentum indices.
The shift in freight flows is being influenced by geopolitical developments, specifically the US-Canada trade tensions and recent transatlantic discussions involving Canada, the EU, and the UK. Canadian importers are exploring sourcing options outside the US, particularly in Europe, driven by the impact of US tariffs. Forwarders note that this transition requires substantial adjustments to supply chain logistics, as moving from short cross-border trucking to longer ocean voyages necessitates re-engineering inventory costs and capacity planning.
The political environment is creating a structural shift where trade agreements, such as the UK's entry into CPTPP and existing CETA benefits, offer a regulatory pathway that makes European sourcing competitive with US alternatives for Canadian importers. This dynamic is anticipated to reshape the mode mix, favoring increased maritime transport to Canadian ports and air freight for high-value goods, while reducing cross-border trucking.
Full Take
The narrative centers on how geopolitical friction forces a structural realignment in global supply chain strategy, moving away from efficiency optimization to risk mitigation through geographical diversification. The key pattern emerging is the substitution of immediate cost minimization with long-term political stability, where the "psychological damage" of volatility creates a stronger driver for change than immediate marginal savings.
The shift from direct US sourcing to EU sourcing under CETA and CPTPP represents more than just a tactical move; it signifies a fundamental restructuring of supplier relationships based on regulatory certainty rather than pure logistics efficiency. The focus shifts from moving goods across borders cheaply to managing the systemic risk associated with specific trade policies.
The friction observed at the border—customs delays, paperwork burdens, and tit-for-tat retaliation—highlights how localized political disputes translate directly into tangible operational friction for logistics providers. This interaction suggests that future supply chain resilience will depend less on optimizing physical routes and more on establishing robust, legally stable sourcing corridors. The implication is that market shifts are being driven by a high-stakes risk calculus where perceived instability overrides immediate economic incentives.
Bridge Questions: If the structural realignment accelerates as predicted, what specific regulatory barriers (beyond tariffs) could impede the smooth flow of goods between EU/UK and Canada? How will this shift affect the long-term investment strategies for port infrastructure in Northern Canada versus the US? Does the focus on risk mitigation create a new systemic dependency between forwarders and trade bloc legal frameworks?
Sentinel — Human
The article functions effectively as a synthesis of expert commentary regarding the real-world, complex process of supply chain realignment driven by geopolitical friction, exhibiting the voice and structure of established industry reporting.