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Key Adjustments

1. Suspended PERAL Service

• MSC has indefinitely paused its PERAL route (connecting Vietnam¡¯s Cai Mep, Haiphong, and US Long Beach) due to weak transpacific demand and low freight rates.

2. ORIENT Route Expansion

• New port rotation: Haiphong ¨C Ningbo ¨C Shanghai ¨C Busan ¨C Long Beach ¨C Oakland.

• Objective: Strengthen coverage in Vietnam and improve US West Coast connectivity.

3. SENTOSA Route Enhancement

• Added Xiamen call: New rotation ¨C Port Klang ¨C Singapore ¨C Laem Chabang ¨C Vung Tau ¨C Yantian ¨C Xiamen ¨C Long Beach ¨C Oakland.

• Purpose: Ensure stable cargo flow from China¡¯s Fujian province to the US.

Market Context & Impact

• Freight Rates at Lows: US West Coast spot rates have dropped below $2,000/FEU, prompting MSC and others (e.g., SeaLead, TS Lines) to cut capacity.

• Tariff Uncertainty:

• Trump¡¯s new tariffs (effective August 1, 2025) have yet to spur preemptive shipments, as importers await final customs rules.

• Existing high US-China tariffs (until August 14) further suppress demand.

• Congestion Woes:

• Nordic ports (e.g., Rotterdam, Antwerp) face 7-day delays, diverting carrier schedules and raising costs.

Outlook

• Short-term: More carriers may suspend routes if tariffs dampen Q3 volumes.

• Long-term: MSC¡¯s Haiphong/Xiamen additions signal a shift to secondary hubs amid trade volatility.