New U.S. tariffs and escalating global trade tensions have reshaped vessel markets in the first half of 2025, contributing to a 44% drop in charter rates for standard 6,500 CEU vessels and a complete halt in newbuild orders for vehicle carriers, according to Marinelink analysis of maritime industry data. The policy changes reflect a broader transformation in global shipping as environmental regulations and trade tensions fundamentally alter investment patterns across the maritime sector.
Container Shipping Surges Despite Market Volatility
While traditional shipping sectors face headwinds, container ship operators have accelerated expansion plans with dramatic results. Container ship newbuilding orders surged 288% year-on-year during the first six months of 2025, according to Marinelink's Half-Year Market Report by Veson Nautical. This surge occurred despite persistent cost pressure as operators moved quickly to secure tonnage amid ongoing diversions around the Cape of Good Hope and congestion at European ports.
"Geopolitical pressure is no longer a background factor; it's shaping the way owners think about risk, timing and capital," said Matt Freeman, Chief Market Analyst at Veson Nautical, according to Marinelink. "From regulation to rerouting, disruption is now part of the operating environment, and owners are recalibrating their strategies accordingly."
Trade volumes rose by nearly 5% despite global uncertainty, with demand for mid-size capacity remaining particularly strong. Values for 15-year-old Feedermax vessels climbed by 16.5%, supported by limited availability and steady interest from major buyers, Marinelink reported.
South America-China Trade Drives New Shipping Patterns
The transformation extends beyond traditional shipping routes as emerging trade relationships reshape global logistics networks. Container shipping volume between South America and China is experiencing significant growth, with exports from South America to China surging from approximately 200,000 TEUs in 2005 to over 1 million TEUs in 2024, according to One-Line analysis. Imports climbed even more dramatically, from under 500,000 TEUs to more than 3 million TEUs in the same period.
This deepening relationship has pushed total trade volume between the regions to nearly 4.5 million TEUs, largely driven by significant increases in foreign direct investment and evolving economic needs, One-Line reported. Ocean Network Express (ONE), which operates a fleet exceeding 1,900,000 TEU capacity with 244+ port calls around the world, has positioned itself to capitalize on these shifting trade patterns through strategic partnerships and expanded service networks.
Environmental Regulations Reshape Waste Trading Networks
The "End of Waste" principle is fundamentally reshaping global supply chains as the world moves toward a sustainable, circular economy, according to Eua analysis. This transformation has created new trade flows as traditional import hubs are being replaced by growing markets in India and Southeast Asia, driven by evolving regulations and surging domestic demand.
The international waste paper market, with an annual transport volume of around 2 million TEUs, experienced a significant geographical pivot following China's 2017 implementation of stringent environmental regulations, including the "National Sword" policy, Eua reported. Forecasts suggest that by 2030, India, Vietnam, and Malaysia will collectively account for over 70% of worldwide waste paper imports, creating new opportunities for container shipping operators.
LPG and Tanker Sectors Face Headwinds
While container shipping thrives, other maritime sectors struggle with policy uncertainty. The liquefied petroleum gas sector saw newly imposed tariffs between the US and China weigh on investor confidence, helping push sale and purchase volumes down by 25% year-on-year, according to Marinelink data from Veson Nautical's report.
The tanker sector experienced similar challenges, with newbuilding orders down 74% year-on-year and sale and purchase volumes falling by 31%. However, MR2 product tankers accounted for over a third of tanker transactions, indicating selective strength in certain segments, Marinelink analysis showed.
Regional Policy Responses Vary Significantly
Different regions are adapting to these market pressures through varied policy approaches. In Bangladesh, industry leaders have called for the repeal of the Bangladesh Flag Vessel (Protection) Act 2019, terming it outdated and a major barrier to growth in the country's ocean-going shipping and shipbuilding industries, according to Thefinancialexpress reporting.
Shipping entrepreneur Azam J Chowdhury noted that the law, introduced to reserve 50% of government cargo for Bangladeshi-flagged vessels, has mainly benefited state-run carriers while private operators owning over 100 vessels have been excluded from government privileges, Thefinancialexpress reported. The policy challenges highlight broader tensions between protectionist measures and industry competitiveness.
Technology Partnerships Drive Sustainability Goals
Amid these policy shifts, major shipping lines are forming strategic partnerships to address environmental challenges. Ocean Network Express announced in October 2025 the extension of its partnership with Nike, expanding deployment of ONE's sustainable shipping solution, ONE LEAF+, according to One-Line press releases. The collaboration demonstrates how major shippers are integrating sustainability requirements into their logistics strategies.
ONE operates 165+ weekly service loops globally, positioning the company to implement large-scale sustainable shipping solutions across major trade lanes. The partnership extension reflects growing corporate demand for environmentally responsible shipping options as regulatory pressure intensifies.
Industry Outlook Remains Uncertain
The maritime industry faces continued volatility as trade policies, environmental regulations, and geopolitical tensions create an increasingly complex operating environment. While container shipping benefits from supply chain diversification and trade growth, traditional sectors like vehicle carriers and LPG shipping confront significant headwinds from policy changes.
The transformation underway represents more than cyclical market adjustments—it reflects fundamental shifts in global trade patterns, environmental consciousness, and regulatory frameworks that will likely define maritime industry dynamics for years to come. Success in this environment increasingly depends on adaptability, strategic partnerships, and the ability to navigate complex policy landscapes across multiple jurisdictions.