The efficiency of using container ships globally is at a low level, especially on the trans-Pacific and Eurasian routes, causing the container freight rates to drop continuously in the past time.
Sea-Intelligence noted in a recent analysis that "Global demand continues to decline and whether we calculate growth in TEUxMiles or as a percentage year-to-date in 2019, one thing is clear. It's clear: the supply/demand balance is under a lot of pressure."
The latest demand data from the Bureau of Container Trade Statistics (CTS) shows that in August 2022, year-over-year growth was lower than that seen in 2019.
Sea-Intelligence further noted "In order to maintain very high spot rates, nominal usage exceeding 92%-93% needs to be maintained on the transpacific service, and with threshold levels on the Asia-Europe route is 85%." However, across the trans-Pacific, capacity utilization fell below 90% for most of 2022, and the price drop continued.
On the Asia-Europe service, train utilization has decreased further. As we can see in Figure 1, the 2022 utilization in Asia-Europe has been consistently below the 85% threshold, which is unlikely to trigger a rate increase and although utilization has improved in August to 74% from 72% in July; the 2-month average continued to decrease from 76% to 73%.
This latest data simply reconfirms what has happened since the beginning of 2022, there is no fundamental support for rates to continue to soar across the trans-Pacific and Asia- Europe.
As the United States officially imposes countervailing duties of up to 46% on certain export products from Vietnam, the Vietnamese logistics sector is facing significant challenges—including rising operational costs, longer shipping times, and the risk of supply chain disruptions.
It is evident that digitalization has become the defining trend of the modern era. Across all industries and sectors, businesses are shifting from traditional development strategies to automation and digital transformation, aiming to optimize operational efficiency and productivity.
Europe remains one of the most important and promising export markets for Vietnamese enterprises, especially following the implementation of the EU–Vietnam Free Trade Agreement (EVFTA). With a population of over 740 million and a total GDP of approximately USD 18 trillion, the region has a strong and diverse demand for imports ranging from agricultural products and processed foods to industrial goods, electronics, and textiles.
In an effort to continuously enhance our position and expand our global network, Glotrans actively participated in the PPL AGM 2025 Annual Meeting in Hong Kong from May 25 to May 28. This is a key event, providing us with valuable opportunities to enhance our expertise and develop international partnerships.
On May 18, 2025, Glotrans HCM officially entered its 13 years of operation, marking an ever-growing journey in international logistics and freight forwarding.
