Trans-Pacific

US shippers have pulled forward as much cargo as they can ahead of the latest deadlines for higher US tariffs, leaving carriers little choice but to cancel more voyages.

US retailers are, not surprisingly, importing only what is “absolutely necessary” given the frequent changes in new tariffs and tariff deadlines announced by the Trump administration, writes Lars Jensen.

Despite significant injections of reefer capacity in early 2025, US cold chain stakeholders say they continue to face equipment scarcity issues.

The decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said in a quarterly update Friday.

The Marseille-based liner has finalized operational plans to call off its remaining vessel-sharing agreements with the carriers after Gemini Cooperation-linked realignments.

Trans-Pacific carriers are facing rapidly declining demand and freight rates on the trade lane as the frontloading that occurred during the 90-day pause on new US tariffs — now extended to Aug. 1 — has largely lost steam.

Mediterranean Shipping Co. is furthering its lead in vessel tonnage so far this year as it absorbs more than double the amount of new capacity added by No. 2 carrier Maersk.

But the mini rush will be short-lived, with imports falling month to month between August and November, the National Retail Federation and Hackett Associates said in their latest Global Port Tracker.

In the latest course correction in the US’ busiest trade lane, carriers are set to deploy less tonnage in August as spot rates fall and retail import forecasts weaken.

Carriers are pulling back on their blanking campaigns on the Asia-ECSA lane in July after two months of blanking campaigns largely neutralized capacity additions to the lane.

While vessels on the lead West India-US East Coast networks have continued to sail full, forwarders have linked the “sold-out” experience to capacity cutbacks and consequent cargo rollovers.

The fresh capacity carriers rushed into the US’ busiest trade lane in April and May is no longer needed, sending rates on a downward spiral and forcing carriers to shelve proposed price hikes.

Although spot rates from Asia to the US are dropping due to waning demand and overcapacity, the carrier is zeroing in on the e-commerce sector with its expedited transit times and the quick delivery of containers upon discharge from vessels.

Swire, UWL’s original partner for the express service to Seattle, will phase out its vessels during July while new partner Emirate Shipping Line rotates into the loop.

Peak shipping season began early on both trade lanes, but the advancing of US orders from China will hit trans-Pacific demand in the second half of the year.

With little relief forthcoming, cargo owners need to build delays into their shipping plans as port and ship capacity remain tight, speakers at the Agriculture Transportation Coalition’s annual meeting said.

A more than 30% one-week drop in rates from Asia to the US West Coast is showing that the import rush sparked by the temporary pause in higher US tariffs will apparently be short-lived.

Despite ongoing efforts to clear out logjams triggered by the brief work stoppage, berth waiting times for vessels arriving at the country’s busiest port have risen to their highest this year.

The China-based liners carried a combined 1.09 million TEUs in imports to the US through April, up 23% over the same period in 2024, according to Journal of Commerce rankings.

Sea-Intelligence said elevated freight rates are drawing small carriers to the eastbound trade lane, but the additional capacity should dwindle by mid-August.

A widening spread between the West and East coasts comes as carriers have added fresh capacity, especially to Southern California, to take advantage of what had been a sharp jump in demand and rates following the US pause on higher tariffs against China.

Carriers are looking to ride the higher rates as long as they can before the fresh vessel capacity that is making its way to the trans-Pacific begins to dull the momentum.

Labor shortages and low water levels in Europe are intensifying persistent port bottlenecks, while the trans-Pacific demand is pulling vessels out of Asia-Europe.

That the port is the largest transshipment hub makes it convenient for carriers to transship cargo as they redeploy vessels from European and other long-haul trades to US-focused services.

Within a span of roughly 24 hours, one court decision blocked the US tariffs and a separate ruling restored the tariffs through June 9, if not longer.

Sources have linked some of the US-India blankings to carriers shifting capacity to capitalize on surging volumes on the eastbound trans-Pacific trade following a temporary 90-day tariff truce between the US and China.

The US Court of International Trade on Wednesday stated that President Donald Trump’s tariffs exceed his authority.

Whether the expected capacity injection on tap for June is enough to stem further rate increases remains unclear.

Indian capacity to the West Coast is in large part confined to extended Asian networks connecting over regional hubs, so space availability remains exposed to demand volatility at origin load ports.

Carriers may find it difficult to bring trans-Pacific capacity back quickly because they repositioned ships into other trades outside of the region amid the tariff-linked demand drop in April and early May.

A calendar quirk is causing consternation for importers of non-Chinese goods with long lead times who believed they had avoided the first salvo of US tariffs by loading their cargo before the prescribed “load-by” date and are now facing unexpected costs.

Importers can get a fairly good sense of how to proceed over the next few months based on developments to date, but things will get fuzzy when the separate cooldown periods for tariffs on China and the rest of the world expire this summer, writes Lars Jensen.

The Port of Los Angeles took the top spot for containerized imports in 2024 and edged out Houston and Savannah as the busiest gateway for exports.

The Zim Central China Xpress will restart next week, little more than a month after Zim announced its suspension as part of the carrier’s broader 30% to 35% trim in its trans-Pacific network.

Forwarders expect congestion and container shortages to worsen in the next few weeks as carriers redeploy vessels to trans-Pacific services from Asia-Europe trades to meet increased demand from shippers.

MSC plans to provide all of the tonnage in a US Gulf service, with Zim slated to get a lower share of slot space as weaker demand forces service changes.

With less than half of CMA CGM’s fleet built in China, CFO Ramon Fernandez believes US services can be structured to avoid the incoming tonnage fees.

Container lines are looking to capitalize on a ramp-up in Asia-US bookings during the 90-day tariff reduction that followed Monday’s deal between the Trump administration and China.

Industry backlash mitigated the costliest components of the US Trade Representative’s proposed fees, but surcharges from some carriers are still likely on the way, writes Executive Editor Mark Szakonyi.

Rates are climbing quickly amid fresh Chinese volumes headed to the US, with an expected crunch in vessel capacity and the potential for port congestion driving the gains.