In an exclusive webinar hosted as part of Capital Link's Container Shipping Sector Webinar Series, Euroseas Ltd (NASDAQ:ESEA) Chairman and CEO Aristides Pittas, Global Ship Lease Inc (NYSE:GSL) CEO Thomas Lister, and MPC Container Ships ASA (OTC: MPZZF) Co-CEO & CFO Moritz Fuhrmann discussed current state of global trade and its impact on the container shipping industry, with discussions on trade volumes, potential tariffs, and the impact of Chinese-built ships entering the US. Below are key highlights from their remarks. Ken Hoexter, Managing Director, Surface & Marine Transportation Analyst at Bank of America moderated the panel.

According to Mr. Pittas, global containerized trade rebounded in 2024, growing nearly 6% after two years of stagnation driven by post-pandemic normalization and inventory corrections. However, he noted that recent data points to softening demand, particularly in U.S. import activity, where container imports account for 13% of global trade, with 40% sourced from China. In the near term, Mr. Pittas expressed confidence that U.S. container imports would hold above 700,000 TEUs and may even increase slightly.

Mr. Lister added that despite these disruptions, economic fundamentals remain resilient, supported by low transport costs and rerouted supply chains. He expressed mixed views on the risk of a near-term volume "air pocket" but emphasized that long-term demand drivers remain intact. He also highlighted the growing disconnect between softening spot freight rates and resilient charter rates, with operators increasingly prioritizing fleet flexibility through longer-term charters.

Mr. Fuhrmann noted that the limited newbuild supply of sub-10,000 TEU vessels and an aging global fleet, will further tighten market conditions. He also addressed the impact of proposed U.S. port fees on Chinese-built vessels, estimating that large vessels could face up to $8.5 million per voyage in additional costs, likely accelerating shifts toward transshipment hubs. He also noted that Chinese state-backed carriers, such as COSCO and its subsidiary OOCL, would likely be among the most heavily impacted by the new fee structure, given their large fleet of Chinese-built ships operating on U.S. routes. This distinction could create competitive advantages for companies with lower exposure to Chinese-built vessels.

The panelists agreed that geopolitical disruptions, such as the Red Sea crisis, have inflated demand by extending voyage times by 10–14 days, and rerouting is expected to persist well into 2026. Meanwhile, reefer cargo growth remains strong, providing additional support to select segments.

Looking ahead, management agreed that container trade growth is increasingly tracking global GDP, signaling a more mature yet stable market. The longer-term outlook, however, will depend on how tariff negotiations evolve and whether deglobalization pressures continue to intensify.

The full discussion can be accessed through the link below:

Capital Link is the investor relations advisor to Euroseas and MPC Container Ships and works with Global Ship Lease. This content is for informational purposes only and not intended to be investing advice.