Niche ocean carriers operating outside the major global alliances are facing increased risk of closure due to ongoing trade tensions between the United States and China.
Danish market platform Sea Intelligence has reported that these independent carriers are particularly vulnerable due to their heavy reliance on cargo originating from China and limited ability to pivot to alternative sourcing markets.
During the peak of the Covid-era shipping boom, smaller lines saw a dramatic rise in their market share on the Transpacific route, increasing from roughly 5% to around 15%.
This growth for non-alliance carriers was largely fuelled by exceptionally high spot freight rates, which allowed smaller operators to charter vessels at inflated prices and remain profitable.
However, with a sharp decline in both demand and spot rates, many of these lines are now teetering on the edge of unprofitability, prompting a rapid withdrawal from the market.
The situation has been further aggravated by the intensifying US-China trade conflict.
Recent tariff hikes — reportedly rising to as much as 145% on Chinese imports — have triggered an increase in "blank sailings", in which scheduled voyages are cancelled or postponed.
Such disruptions are particularly damaging for smaller carriers with limited operational flexibility and a high dependence on Chinese export volumes.
With freight rates continuing to slide and geopolitical tensions showing no sign of easing, smaller and independent shipping lines are under mounting pressure.
Many may be forced to scale back their operations or exit the industry altogether as economic viability slips out of reach.
Some of the carriers mentioned in this regard include China United Lines, Wan Hai Lines, Matson, Trans Service and Sea Land Shipping.
