Annual contracts are being negotiated between shippers and container shipping lines on the trans-Pacific shipping route. ZIM warns if rates are too low, the carrier will stop shipping.
Spot container freight rates have plummeted from a record high, and ZIM's average freight rates fell 42% year-on-year to $2,122/TEU. Spot rates are down from a year ago and Drewry's World Container Index (WCI) for the week ended March 9 stood at $1,806 a foot, 80% lower than the same period last year.
On that basis, ZIM and other container shipping lines are currently negotiating contract prices on the trans-Pacific route from Asia to the US. In a recent discussion of ZIM's Q4 2022 results, Xavier Destriau, CFO and Executive Vice President of ZIM, described the current situation as "unique" like like the moving picture of a pendulum, in which the unusual market situation of the past two years has now moved “very strongly in the opposite direction”.
“I think both shippers and carriers know that there is a space in between that is a natural equilibrium that we should all be aiming for,” he said. However, if this does not happen and shippers insist on extremely low rates, there is a warning of a serious impact on service levels."
“Otherwise, the disruption could also affect shippers. If we do not receive a price that we believe is reasonable to continue shipping, we will stop shipping, and then if we stop shipping that may have a stronger impact on our ability to ship. secure the supply chain of their customers,” warned Destriau.
As the negotiations are going on now and ZIM has contracted most of its customers both in terms of quantity and price, and Destriau has given a positive picture of those negotiations.
“What we heard today from our customers is that they are very satisfied with ZIM and we have received a lot of positive feedback and comments about us being the first shipping line to launch the service. LNG [Fueled] on the Asia route to the US east coast. And that resonates very strongly with our customers,” he said.
“So now we hope that it translates into final negotiations on rates at a level that both shippers and we are happy with.”
ZIM is looking at a split ratio of about 50-50 between contract and spot commodities, but the final rate will depend on where negotiations end with customers. “If rates are not satisfactory to us, we may reconsider that percentage allocation and agree to more exposure to the spot market. We think the second half will be better than the first."
On the outcome of the negotiations, Destriau said: “It is still a few weeks before we finalize the negotiations on the freight contract whether we will end up above, below, close to the price. immediate delivery, it remains to be seen.”
After a challenging period characterized by global market volatility, Vietnam’s paper industry is entering a new recovery cycle with optimistic signals.
As global supply chains continue to shift and the air cargo industry enters a new phase of post-pandemic restructuring, Southeast Asia is increasingly positioned as a strategic air logistics hub on the global map
After two hot years driven by e-commerce and disruption in sea freight, the air-cargo market in 2025 is slowing as supply and demand gradually normalize, belly-capacity (passenger-aircraft freight space) recovers and trade policies fluctuate. For Vietnamese companies exporting high-value goods, this is the time to re-calculate the “sea-air mix” to optimize cost, time and shipment certainty.
Recently, Glotrans successfully held the Year End Party 2025 for the Northern Region in a formal, warm, and highly connected atmosphere. The event provided an opportunity for the Board of Management and all employees to look back on the company’s journey throughout 2025, review achieved results, and align on development directions and strategic objectives for 2026.
On January 20, 2026, Glotrans Da Nang was honored to welcome a delegation from the Faculty of Business Administration – University of Economics, University of Da Nang for a visit and working session at the company.
We wish our valued customers and partners a joyful and happy holiday.
The shipment of food additives was transported in container No. FCIU3301688 (20’), under B/L MPRSMUM1806, on the voyage from Nhavasheva Port (India) to Dinh Vu Port (Hai Phong, Vietnam) on 29/04/2017.
Company T (Plaintiff – the Insured) entered into an insurance contract with Company B (Defendant – the Insurer). After the insured event occurred, the Insurer alleged that the Insured had violated its obligation to prevent and mitigate losses. The Arbitral Tribunal acknowledged that such an obligation exists but concluded that the Insured did not breach it.
Under the insurance contract, the premium was to be paid in three installments, and in all three, the insured party was late in payment. When a dispute arose, the insurer (Defendant) argued that the insurance contract had terminated before the insured event occurred due to the late premium payment and therefore refused to make an insurance payout. However, the Arbitral Tribunal held a contrary view.
