Container bookings from China to the United States have surged nearly 300% after both countries agreed to pause sky-high tariffs that threatened global shipping, according to Vizion, a container-tracking service provider. The latest seven-day booking average from China to the U.S. soared to 21,530 twenty-foot equivalent units (TEU), up from 5,709 for the previous week ending May 5 – a huge 277% increase, said Ben Tracy, Vizion’s Vice President. Following Beijing’s and Washington’s announcement of a 90-day pause on most tariffs, analysts predict an earlier peak shipping season. “With an August deadline for possible higher tariff levels, we’ll likely see front-loading restart, meaning an early start and probably an early tapering off of the ocean peak season this year,” said Freightos, an international freight booking platform. Shipping firms have welcomed the pause on duties. “Since the agreement was announced, we have seen an increase in bookings for our trans-Pacific services,” Maersk said. Hapag-Lloyd also reported a 50% surge in container bookings from China to the U.S. compared to the previous week.
While shipping volumes between China and the U.S. have suffered a sharp decline since April, Freightos noted that transpacific container rates have remained stable – at about USD2,300 per 40-foot equivalent unit (FEU) to the West Coast, and USD3,400 per FEU to the East Coast. The freight booking platform attributed this to carriers reducing capacity by about 22% through blank sailings, suspended services and the use of smaller vessels. The temporary pause on most duties between China and the U.S. will probably lead to an immediate increase in freight rates, analysts agreed. However, Freightos estimated that peak season prices would not reach last year’s levels – USD8,000 FEU to the West Coast and more than USD9,800 FEU to the East Coast – because container shipping rates are now more than 30% lower year-on-year due to expanded fleets and increased competition between carrier alliances. With the sudden rebound in demand, the freight booking platform also cautioned shippers to prepare for congestion, delays and challenges in securing space over the next few weeks at both origin and U.S. destinations, the South China Morning Post reports.
The Global Times adds that in 2024, the volume of trade in goods between China and the U.S. reached USD688.28 billion, with two-way trade in services expanding significantly to USD66.86 billion. U.S. goods exports to China hit USD143.55 billion, an increase of 648.4% from 2001, far exceeding the growth rate of U.S. exports globally over the same period. Currently, the U.S. is China's largest goods export destination and the second-largest source of imports, while China is the U.S.' third-largest export destination and second-largest source of imports.
