- U.S.-China tariff pause triggers spike in demand for trans-Pacific shipping.
- Charter rates surge amid vessel shortages and urgent cargo movements.
- Freight rates on key Asia-U.S. routes rise sharply.
The temporary 90-day tariff ceasefire between the U.S. and China has ignited a major rebound in the transpacific shipping market. Previously subdued activity in the boxship charter segment has been reversed, with idle or sublet vessels being recalled to support the booming demand for capacity on Asia-U.S. routes, reports Container News.
With cargo owners rushing to move goods before the ceasefire ends, major carriers are scrambling to secure vessels. This has driven charter rates significantly higher. For example, major operators have renewed multi-year charters for mid-size vessels at daily rates ranging between \$35,000 and \$40,000, indicating a bullish outlook for the next few months.
Freight Rates Surge on Key Routes
The availability of charter tonnage, particularly in the 4,000 TEU and larger segments, remains tight. Shipowners are leveraging this scarcity to negotiate short-term deals at premium rates. The competition among operators has intensified, creating a bidding war as the clock ticks toward the resumption of tariffs.
The shift in demand is clearly visible in freight indices. Spot rates from Shanghai to the U.S. West Coast have surged over 30% in a single week, reflecting the urgent need for shipping space. With expectations of continued high volumes through the summer, the pressure on both vessel supply and rates is likely to persist.
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Source: Container News
