- Container Imports Rebound Slightly as US and China Pause Tariffs.
- Retailers Rush Shipments Ahead of Tariff Deadlines, Driving Up Asia-US Rates.
- Asia-US Freight Rates Nearly Double as Importers Race Against Tariff Clock.
Container ship arrivals at the West Coast ports of Los Angeles and Long Beach took a dip in May, largely due to the ongoing trade tensions between the US and China. However, early data from June indicates a slight uptick as both nations continue their negotiations for a trade deal. Kip Louttit, the executive director of the Marine Exchange of Southern California, pointed out that in May, the average number of ship arrivals was 5.0 per day, down from the pre-pandemic average of 5.7. But in the first five days of June, that number crept up to 5.6 per day, still just below the levels we saw before COVID hit, reports ICIS.
Surge in Imports Expected Amid Tariff Pause
Looking ahead, import volumes at major US ports are expected to rise soon, thanks to a temporary halt in reciprocal tariffs between the US and China. The Global Port Tracker report, put together by the National Retail Federation and Hackett Associates, reveals that retailers are eager to bring in goods ahead of the busy seasonal demand.
“Retailers had paused their purchases and imports previously because of the significantly high tariffs,” said Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy. “They are now looking to get those orders and cargo moving in order to bring as much merchandise into the country as they can before the reciprocal tariff and additional China tariff pauses end in July and August.”
Retailers Resume Orders After Tariff Relief
Retailers are starting to place orders again after some relief from tariffs. Gold mentioned that many retailers had to put a stop to or even cancel their orders when former President Donald Trump announced a hefty 145% tariff on Chinese goods back in April. But now, with the tariff reduced to 30% and a 90-day pause announced until August 12, imports are back on track. At the same time, reciprocal tariffs on other countries have also been put on hold until July 9 as discussions continue with those nations.
Asia-US Freight Rates Surge on Pre-Tariff Demand
Shipping costs from Asia to the US have skyrocketed, nearly doubling in just a month. This surge is fueled by a spike in demand before the tariffs and ongoing capacity issues. Supply chain experts have noted significant price hikes over the last two weeks.
Freightos, an online freight marketplace, reported Asia–US West Coast rates at $5,488/FEU (40-foot equivalent unit), and East Coast rates at $6,410/FEU as of this week.
Relevance to the Chemical Industry
Even though chemicals are usually transported in tankers, the container shipping market is still very important for the chemical industry. Polymers like polyethene (PE) and polypropylene (PP), which are often shipped in pellet form, along with titanium dioxide (TiO₂), are frequently transported in containers. This makes any changes in freight availability and costs a major concern for the industry.
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Source: ICIS
