Ask Ahab 88

Issue 88

Dear Ahab:

I ship a lot of cargo from China to the U.S., what do you think will be the main issues I have to contend with in 2026?

– Peter Prepper

Dear Peter Prepper:

Just because there is a potential one-year détente between the U.S. and China, doesn’t mean that there will be calm seas ahead. Therefore, I would expect trade tensions to remain high, with tariffs continuing to drive up costs and create uncertainty.

Additionally, I expect cargo theft to continue to rise and for rates to experience volatile swings.

If that is not enough, expect cybersecurity threats to increase, and for government regulators, especially those in the European Union, to begin enforcing emissions regulations, which will add to the never-ending pile of compliance burdens. Finally, be prepared for an unexpected issue to wreak global havoc. So, buckle up – 2026 is going to be a wild ride!

Dear Ahab:

When will the Red Sea diversions end and what do I need to do in order to be prepared?

– Anxious Shipper

Dear Anxious Shipper:  

It remains unclear when the Red Sea route will fully reopen. However, when the diversions end and major carriers begin using the Red Sea route you can expect an immediate crush of cargo hitting European ports, as vessels travelling through the Suez Canal and around Africa will arrive at the ports at roughly the same time. This will create a significant amount of congestion, which will take months to fully clear.

Therefore, the best way to prepare is to continue to monitor the situation and have an alternative plan in place when carriers begin using the Red Sea route. I recommend booking earlier than usual to avoid congestion-related delays and ensure smoother delivery timelines.