China-US cargo flow rebounds after tariff ease highlighting mutual trade relations between both states.
Container shipping between China and the United States is experiencing a sharp rebound as freight capacity is fully booked through June, driven by surging demand and improved trade sentiment following a temporary tariff easing agreement.
Forwarders and shipping executives attribute the rise to renewed demand for US-bound routes, bolstered by the May 12 announcement that China and the US would temporarily reduce tariffs. This move encouraged many American businesses, previously hesitant due to trade tensions, to resume suspended orders.
Jiang Lei, executive director of Zhejiang Xinqiaoyuan International Logistics, explained that many US companies had postponed purchases in early April when tariff hikes were announced. With the latest easing, those companies quickly resumed orders, reigniting container flows across the Pacific.
At Ningbo-Zhoushan Port, China’s second-busiest, the freight index to the US East Coast surged 69.7% to 2,490 points last week, while the index for the West Coast jumped 89.2% to 3,585.2 points, according to the Ningbo Shipping Exchange. Current freight rates now exceed $6,000 per 40-foot container to the West Coast and $8,000 to the East Coast.
Qian Long of Topocean Consolidation Service noted that shipping lines had reduced capacity amid the earlier drop in volume, but the recent spike has reversed that trend. “Shipping companies are now scrambling to restore capacity, although some vessels are still on return trips, causing temporary imbalances,” he said.
Meanwhile, the US Trade Representative’s office extended tariff exclusions for key Chinese goods like solar panels and medical devices through August 31, ensuring continued supply chain stability.
Major shipping firms like Maersk have already begun expanding capacity on the China-US route, while Shanghai Port reported a 49.4% weekly increase in US-bound container throughput from May 19 to 25. All previously suspended sailings have resumed.
Experts say the strong rebound underscores the enduring nature of China-US trade ties and the mutual benefits of ongoing cooperation.
Related Posts
China, U.S. high-level economic, trade meeting starts in Geneva
