TAIPEI (Taiwan News) — Yang Ming Marine Transport Corp said Thursday that freight rates on US routes have bounced back from tariff-driven slumps, offering optimism for Q3.
Speaking at an investor conference, Chief Commercial Officer Li Ming-hui (李明輝) noted that demand dipped after US tariffs were announced in April, per CNA. But with a 90-day extension in tariff exemptions, volumes bounced back and rates turned upward.
Li expects oil prices to rise as a result of Middle East tensions. He stressed that navigational safety remains the company’s top priority.
On the US West Coast freight rate drop last week, Li said a sharp spike last month triggered a short-term correction. Carriers responded by adding capacity, which cooled the market.
Yang Ming explained that while volumes in 2023 were strong and boosted by the Red Sea crisis, this year has seen softer demand amid a wave of new vessel deliveries. Though the economic outlook is not ideal, cargo volume may still grow by 2–3%, but will not match 2023 levels.
Looking ahead to Q3, Yang Ming sees improving supply-demand dynamics and ongoing momentum in rate growth. However, the possible expiration of tariff exemptions in Q4 could create new volatility.
Yang Ming said it has no plans to resume Red Sea routes, citing security risks due to regional instability, per UDN. The company is also monitoring the Israel-Iran conflict and the potential threat of a Strait of Hormuz shutdown.
