Maersk North America Market Update - February Highlights 2025

10 三月 2025

Ocean Update

On February 1, the Network of the Future, our new East-West network, has begun the phase in process via the Cape of Good Hope as previously announced. Since the start, we have seen good performance on the schedule reliability of the vessels. We are on track to have every vessel phased in as per plan and for the East-West network and thus expect to be operating with Gemini fully incorporated by June 2025. We remain confident that the network will allow us to deliver towards our reliability ambitions once fully implemented.

See our Maersk Antares become the first vessel in our new network to connect Asia to North America as it called APM Terminals Pier 400 in Los Angeles, California on March 2.

For overall information on the Network of the Future, click here. For more information about sailing schedules, please visit our dedicated page.

Labor Negotiations

On February 25, the International Longshoremen Association (ILA) voted to ratify the new master contract with the United States Maritime Alliance (USMX). The extension to the master contract is retroactive to October 1, 2024, and runs through September 30, 2030. Following the ratification vote, the ILA and USMX will formally sign the contract on March 11.

Trans-Atlantic

Strong demand continues from both North Europe and Mediterranean origins, with the majority of the first rotation of Gemini vessels sailing at full capacity. This high utilization may affect space availability, so we recommend booking early for your upcoming shipments.

New Service Opportunities

Our enhanced TA2 service to Charleston and Savannah offers improved transit times and reliability. This is an excellent option if you need dependable service to the US Southeast. The TA10 direct service from Turkey to US East Coast is now operational and accepting bookings. This dedicated connection provides a streamlined option for your Turkish exports.

Indian subcontinent, Middle East and Africa

India, Pakistan, Middle East: We're currently fine-tuning connections and feeder services to optimize our network based on current demand patterns. This adjustment period may cause some schedule variations, but overall service reliability is improving. If you have critical shipments, we recommend checking the latest schedules when booking.

Air Freight Update

In January, worldwide volumes grew 2% year over year, lower than expected, freight data provider Xeneta said in its monthly report. Results were impacted by lower volumes out of China toward the end of the month because of the manufacturing and logistics slowdown for the lengthy Lunar New Year holiday. The International Air Transport Association on Thursday released its own data for January that showed air cargo traffic cooled down to 3.2% growth while capacity increased 6.8% from the prior year.

Year to date through mid-February, global demand remains even with last year, according to seasonally adjusted data shared by Xeneta. February is performing better than January, taking into account both the typical beginning-of-year softness in demand following peak shipping season and this year’s earlier Lunar New Year holiday. Two-thirds of the 1.3 billion low-value shipments that entered the U.S. in fiscal year 2024 were from China, according to the U.S. government.

Please click here to find helpful information about the Maersk air freight network and our services to and from North America.

Landside Update

Warehousing

Warehouse demand across North America is surging, with leasing costs rising more than 4% year-over-year as businesses prepare for potential supply chain disruptions in 2025. The National Retail Federation reports record US import volumes. This heightened demand creates significant challenges for retail and lifestyle companies. Seasonal inventory management has become more complex, with delayed fulfillment potentially turning seasonal goods into markdown items. Accelerated product lifecycles, high return volumes, and e-commerce fulfillment demands further complicate warehousing operations.

Traditional warehouse setups optimized for predictable seasonal demands now face unprecedented pressures, forcing companies to reevaluate their strategies.

3PL partnerships offer valuable advantages in this environment. These providers deliver advanced technology integration with real-time tracking and demand forecasting, scalable warehousing solutions that adjust to fluctuating needs, and strategically located facilities that reduce transportation costs. They also implement high-density storage solutions and bring industry-specific expertise to manage unique requirements.

Regional warehousing strategies have emerged as particularly effective. By distributing inventory across East Coast, West Coast, and Midwest locations, companies position products closer to consumers, reducing delivery times and creating redundancy against regional disruptions. BCG reports that 81% of executives plan to bring supply chains closer to market, an 18% increase from 2022.

Maersk's warehousing solutions can help you navigate these challenges with our strategically located facilities, advanced inventory management systems, and flexible capacity options that adapt to your changing business needs.

Customs Update

The US government has implemented significant tariff changes affecting imports from Mexico and Canada. Most Mexican imports now face a 25% additional duty, with limited exemptions for humanitarian aid and informational materials such as books and films.

Canadian imports are subject to similar restrictions, with a 25% additional duty on most goods. Energy products from Canada, including crude oil, natural gas, and critical minerals, face a 10% additional duty.

The administration has provided temporary relief for certain categories. Goods from both countries that qualify under the United States-Mexico-Canada Agreement (USMCA) are exempt until April 2. Additionally, automakers have received a one-month exemption from these tariffs.

For businesses using Foreign Trade Zones (FTZ), important restrictions apply. Goods must be entered as "Privileged Foreign Status" and will be subject to these duties upon withdrawal from the FTZ. Importantly, these duties cannot be refunded through drawback claims, eliminating a potential avenue for cost recovery.

For China and Hong Kong, duty rates have doubled from 10% to 20% on most imports. Goods in transit before February 1, 2025 may qualify for exemption if entered before March 7. As with other affected countries, FTZ users must designate goods as "Privileged Foreign Status."

For steel & aluminum import tariffs, please reference our previous communication.

These new duties apply in addition to all existing tariffs, including USMCA and current trade remedies. US Customs will reject non-compliant entries, which can lead to shipment delays and financial penalties. Accurate product classification and duty calculation are essential to maintain smooth operations.

We recommend reviewing your supply chain immediately to identify affected products and assess potential cost increases. Verify your HTS codes and ensure duty amounts are reported correctly. Consider exploring duty mitigation strategies through FTZs, alternative sourcing, or compliance planning. Proper preparation will help you avoid shipment delays, penalties, and financial risks.

In response, the Canadian government implemented a 25% tariff starting March 4. China will impose tariffs on US-origin goods beginning March 10. Mexico has not yet announced retaliatory measures, but we will update you when information becomes available.

Our Global Trade and Customs Consulting team can help you navigate these changes and identify opportunities for cost savings. For assistance with US regulations, contact compliance.mcsi.nam@maersk.com. For Canadian regulations, contact compliance.ca.mcsi.nam@maersk.com.