- Shipping Lines Scale Back After Short-Lived Demand Spike.
- Tariff-Pause Boost Fades as Importers Pull Back.
- Asia–US West Coast Capacity Plans Return to Baseline.
The latest issue of the Sea-Intelligence Sunday Spotlight, Issue 724, highlights a significant shift in the Asia–North America West Coast (NAWC) trade lane. The anticipated surge in capacity has fizzled out, bringing vessel supply levels back to what they were before the pause in US–China trade, reports Sea Intelligence.
Initial Optimism After Tariff Pause
When the China–US trade war hit a pause, US importers seized the opportunity to move cargo that had been stuck due to the hefty 145% tariffs. There was a buzz that importers would rush to front-load shipments ahead of the busy Q3 season. In response, shipping lines ramped up their capacity plans to accommodate this expected spike in demand.
Reversal in Capacity Deployment
But that initial excitement didn’t last long. As regulatory uncertainties loomed, US importers started to play it safe, stepping back from their aggressive import strategies. Consequently, the latest figures from Sea-Intelligence’s Trade Capacity Outlook (TCO) reveal a noticeable drop in the capacity that carriers had initially planned.
Planned Increases Fall Flat
Back in late May, shipping lines had significantly boosted their planned weekly capacity for June by 43,000 TEUs in just three weeks. However, by the end of June, the actual deployment mirrored the levels seen before the tariff pause. July saw another initial spike in planned capacity, but that too has been dialled back as sailings were cancelled. This downward trend is now evident for August, with early optimistic projections being revised downwards.
Return to Pre-Pause Levels
The narrative is becoming clear: carriers reacted to what seemed like a strong and lasting demand spike. But as that demand faded, so did the need for extra capacity. For the Asia–North America West Coast route, shipping lines have now adjusted their plans to align with the current demand reality, effectively bringing capacity levels back to where they were before the tariff pause.
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Source: Sea Intelligence
