After a brief pause in reciprocal tariffs, the United States is once again seeing an increase in imports from China. Shippers wasted no time in taking advantage of the agreement, with demand for containers on vessels bound for the U.S. surging almost overnight.
According to Ben Tracy, vice president of strategic business development for shipping analyst Vizion, container bookings from China to the U.S. have seen a significant uptick. A rolling seven-day average revealed a jump from 5,709 twenty-foot equivalent units on May 5 to 21,530 TEUs by Tuesday, marking a 277% increase.
“We are definitely starting to see the bookings return now that this temporary pause is in effect,” Tracy noted.
While there has been an increase in container bookings, the SONAR Ocean TEU Volume Index still shows a decrease in containers departing from China. However, the Ocean Booking Volume Index has seen a rise, indicating a potential rebound in the near future.
The supply chain had been filled with uncertainty regarding how quickly business would resume, but Ryan Petersen of forwarder FlexPort reported a 35% increase in booking inquiries with his company.
In an effort to fill available capacity on ships, liner operator Maersk has been offering deep discounts on spot rates for door-to-door transportation to and from numerous U.S. destinations. This move comes as a way to entice shippers and maximize the utilization of vessels.
As the industry continues to navigate the impacts of the trade agreement, it is clear that the temporary pause in tariffs has spurred a resurgence in China-U.S. container traffic. The data from SONAR provides valuable insights into the shifting dynamics of the market, highlighting both challenges and opportunities for stakeholders in the supply chain.
For more information on this topic and other related coverage, be sure to check out the original article on FreightWaves. Stay tuned for further updates as the situation continues to evolve in the coming days and weeks.
