Container ship bookings for cargo from China to the U.S. have significantly increased since the declaration of a 90-day truce on tariffs between the two countries last weekend, according to operators. This has led to traffic congestion at Chinese ports and factories, which could take weeks to resolve.
U.S. importers of various goods, including sneakers, sofas, construction supplies, and auto parts, are rushing to ship their products before potential tariff resets. This situation mirrors the global transport challenges experienced during the COVID-19 pandemic.
The surge in cargo at major trade hubs like Shenzhen’s Yantian Port has caused ship owners to urgently coordinate berths and adjust vessel schedules. According to container-tracking software provider Vizion, average bookings for the seven days ended on Wednesday rose by 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5.
Industry experts predict a significant but manageable increase in arrivals at U.S. West Coast ports in the coming weeks. Spot rates from Shanghai to Los Angeles increased by 16% to $3,136 per 40-foot container, though this is less than half of what it was in April 2024. Rates could rise sharply to about $6,000 per container if ship owners enforce rate hikes.
Demand patterns differ this time around due to weakened U.S. retail sales, homebuilding, and manufacturing, which are key drivers of container shipments. Additionally, many U.S. companies have accumulated inventory before tariffs were imposed. The uncertainty surrounding future import duties further complicates planning.
The Trump administration confirmed to Reuters that U.S. tariffs would reset to 54% if no agreement is reached by the deadline. Despite the challenges, some companies are stockpiling goods while others decline due to lack of space and funds.
— new from Reuters