The demand for shipping containers is very high, with Chinese companies taking a bigger slice of the global market. China’s exports are growing faster than its overall economic growth. During the second quarter of 2025, freight spot rates jumped by 37% over just 13 weeks. The trade agreement between the US and China is still in place, affecting supply chains for months since it began in May. Shipping capacity is nearly full, driving up freight costs due to continued demand. This surge in demand exists because businesses want to avoid the risk of new tariffs, as tariff policies can change unexpectedly.

Speculative Instruments for Rising Costs

With such high demand for containers and limited capacity, traders should consider investing in options that anticipate ongoing high shipping costs. Freight futures, particularly those linked to the Freightos Baltic Index, provide a direct way to bet on this trend continuing into Q3. Recent data shows that the global container freight index has continued to rise in early August 2025, building on the 37% increase seen in the second quarter. This trend signals a good opportunity to consider call options on major shipping and logistics companies in the upcoming weeks. During the post-pandemic boom of 2021-2022, similar conditions of tight capacity led to record profits for shippers. Data from early August 2025 reveals that global container fleet utilization is still above 95%, a level usually linked to significant port congestion and higher earnings for carriers. Strong growth in Chinese exports, which are outpacing GDP growth, backs up this outlook. Trade figures from July 2025 confirmed another month of export growth that exceeded expectations, driven by electronics and automotive parts. This trend makes derivatives on ETFs related to Chinese export-focused industrial companies appealing.

Pressure on Import-Dependent Companies

In contrast, companies that rely heavily on imports and operate with narrow profit margins may feel the pressure. Rising freight costs, which take time to move through supply chains, are likely to squeeze profits for many US and European retailers in Q3. It may be wise to consider put options on retail sector stocks that usually react strongly to high shipping costs. The current situation is delicate, fueled by a rush to ship goods while the US-China trade agreement remains intact. This uncertainty could lead to increased market volatility if trade relations change. Traders might want to explore options strategies that could profit from significant price swings in either direction on major market indices. Increased shipping activity directly boosts demand for marine fuel. We’ve noticed bunker fuel prices rising over the past month, putting even more pressure on costs. Betting on increasing oil prices through futures or call options on energy sector ETFs could be another way to navigate this ongoing supply chain situation. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now