Tariffs reduced, booking volumes increased and shipping costs skyrocketed

After the latest adjustment of tariffs between China and the United States, many domestic logistics and freight forwarding companies have been urged by American customers, leading to a "cabin grabbing fever" in American shipping. At present, the shipping capacity of the US line at the end of May is approaching full capacity. At the same time, multiple shipping companies such as Maersk, Hapag Lloyd, Mesen, EVER, COSCO, etc. have issued notices of price increases/surcharges, with freight rates ranging from $500 to $1500. 

The latest Drewry Freight Index shows that the shipping cost from Shanghai to New York has increased by 19% or $704, reaching $4350 per 40 foot container, while the shipping cost from Shanghai to Los Angeles has jumped by 16% or $423, reaching $3136 per 40 foot container.

In recent days, with the peak of US shipments, the number of inquiries from international freight forwarding companies has surged. Several freight forwarding companies in Shanghai and Shenzhen have reported that in recent days, customer calls have been pouring in and a large number of sea freight booking orders have been confirmed. There has been a shortage of goods in the United States, and customers are constantly urging companies to meet the latest shipping schedule. Especially since the afternoon of May 12th, some freight forwarding companies have increased their cargo volume by 40%, and by June, the cargo volume should be at least twice as much as it is now.

The booking quantity and shipment volume have doubled, and there are more processed products, including clothing, rubber products, and other aspects. Due to the surge in order volume, the demand for container ships by enterprises has also increased, and some shipping companies have begun to adjust their global capacity allocation.

Due to the previous suspension of a large number of goods exports, American sellers urgently need to replenish their inventory. In the coming period, the demand for Chinese goods from the United States will continue to increase. In terms of freight rates, industry insiders predict that starting from $6000 in the western United States and $7000 in the eastern United States in June.