- A temporary US tariff cut on Chinese goods has caused a sharp rise in China-US shipping rates and cargo bookings.
- Major freight carriers report large increases in bookings—up to 275%—as companies rush to ship goods before tariffs possibly rise again.
- Walmart says the tariffs are still too high and will lead to higher consumer prices and reduced order volumes for some products.
- Smaller US importers, without Walmart’s resources, may struggle to cope with high tariffs, limiting future import growth.
Cargo bookings and transpacific spot rates between China and the US have surged following a temporary US decision to reduce incremental tariffs on Chinese goods from 145% to 30%. As a result, the Shanghai Containerized Freight Index (SCFI) showed a sharp rise in shipping rates, with prices to the US West Coast jumping 32% to $3,091 per container and rates to the East Coast rising 22% to $4,069.
Similarly, Drewry’s World Container Index (WCI) reported a spot-rate increase of 16% to $3,136 per FEU for Shanghai–Los Angeles and 19% to $4,350 per FEU for Shanghai–New York, according to the report published by Lloyd’s List Intelligence.
Shipping from China to the US Increases After Tariff Drop
China-US ocean freight bookings have spiked sharply in the wake of the temporary tariff reduction, with carriers and forwarders reporting dramatic increases. Rolf Habben Jansen, CEO of Hapag-Lloyd, noted during a Wednesday conference call that bookings had jumped more than 50% compared to the previous week. Flexport CEO Ryan Petersen reported an even steeper rise, saying his company’s China-to-US bookings were up 275% week-on-week.
Transpacific spot rates are expected to continue climbing as shippers rush to move cargo during the 90-day window before higher tariffs potentially return. Analysts, including Clarksons’ Frode Mørkedal, warn that this surge in demand could lead to congestion and delays, keeping rates elevated for an extended period.
Before the reintroduction of steeper trade barriers under Trump’s renewed tariff agenda, average US tariffs on Chinese goods were estimated between 10% and 20%. With the latest rollback, total tariffs have temporarily decreased from a peak of 155%-165% to an average of 40%-50%—still a historically high level.
Retail Giants Warn of Ongoing Tariff Struggles
Walmart, America’s largest importer of containerized goods, highlighted the ongoing strain of US tariffs on Chinese products during its earnings call on Thursday. Despite the recent tariff rollback, executives made clear that the pressure remains intense.
“Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” said Walmart CEO Doug McMillan.
Chief Financial Officer John David Rainey acknowledged the positive step of lowering tariffs but cautioned, “Let me emphasize: we still think that’s too high.” Speaking on CNBC, Rainey warned that consumers will begin to feel the price increases by the end of this month, “and certainly much more in June”.
McMillan added, “We’ll adjust quantities over time as we navigate tariff impact on costs.” In essence, Walmart will reduce order volumes for items where consumers are unlikely to tolerate price hikes.
This presents a broader risk to US import volumes, as smaller retailers face the same high tariffs without Walmart’s scale or financial resilience. In 2024, Walmart imported more containerized goods than both Home Depot and Target combined. With fewer resources and flexibility, these smaller players may struggle even more to maintain import levels, potentially limiting the long-term rebound in US-bound container traffic.
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Source: LloydsListIntelligence
