- Temporary tariff cuts boost transpacific shipping demand.
- Shippers rush imports ahead of tariff rollback deadline.
- Suspended liner services are expected to resume soon.
The liner sector received good news this week when the US and China agreed to impose a 90-day hiatus on their tariff war. The US tariffs on Chinese imports will fall from 145% to 30%, and China will lower its retaliatory tariffs on US imports from 125% to 10%, reports Baltic Exchange.
Shippers Rush to Beat the Clock
With uncertainty beyond the 90-day timeline, importers are likely to book China imports in advance at a higher tariff rate, expecting a potential restoration of higher tariffs in the future. This may result in short-term volume peaks and possible volatility by mid-Q3, just ahead of peak season.
Suspended Services to Resume
Those carriers who had suspended transpacific services will now start normal sailing loops within the next few weeks as confidence returns.
Container Rates Rise on Key Lanes
China/East Asia – US West Coast rates on FBX01 gained $307 at $2,718/FEU. China/East Asia – US East Coast rates on FBX03 gained $354 at $3,784/FEU. China/East Asia – North Europe rates on FBX11 gained $173 at $2,578/FEU, and China/East Asia – Mediterranean rates on FBX13 gained $73 at $3,009/FEU. Return routes also experienced small gains: China/East Asia – US East Coast rates on FBX02 remained unchanged at $438/FEU, and North Europe – East Asia rates on FBX12 gained to $452/FEU.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Baltic Exchange
