Trade uncertainties stemming from tariff-related tensions have caused a decline in ocean cargo bookings originating from China, Freightos reported.
Market Overview
Ocean container rates on Asia-to-North America routes experienced a modest increase last week as tariff-related disruptions from the U.S. administration continued to affect global markets, Freightos shared in its April 16 market update.
Asia to U.S. West Coast: Rates rose 10% week-over-week, reaching $2,465 per forty-foot equivalent unit (FEU).
Asia to U.S. East Coast: Rates climbed 3%, reaching $3,647 per FEU.
Freightos noted that reduced volumes from China to the U.S., coupled with heightened demand on alternative Asia trade lanes, reflect “diverging rates at the port-pair level.”
Analysis and Key Insights
Frontloading Activity and Trade Tensions
Freightos observed a significant increase in frontloading by U.S. importers since November to preempt tariff increases. The White House’s April 9 announcement of country-specific reciprocal tariffs triggered another surge in shipments before the new levies took effect.
Escalating tensions culminated last week with reciprocal tariffs on China raised to 125%, resulting in cumulative duties of up to 245% on some imports, according to a White House fact sheet.
Shifting Sourcing Strategies
While reciprocal tariffs for most other countries remain paused for 90 days, many importers sourcing from non-China Asian countries have begun increasing orders to mitigate the risk of tariffs resuming in July.
Operational Impact
Port Congestion and Volume Projections
The Port of Los Angeles has been a focal point for the surge in shipments. According to Executive Director Gene Seroka, the port handled 2.5 million TEUs in Q1 2025, reflecting a 5.2% year-over-year increase. However, Seroka anticipates a 10% decline in port volumes starting in May due to cooling demand.
Blank Sailings and Abandoned Cargo Risks
Clint Dvorak, Senior Director of Ocean Operations and Customs Brokerage at SEKO Logistics, highlighted increasing blank (voided) sailings from China. SEKO has already reported 11 canceled sailings originally scheduled for May.
“We’re observing a rise in canceled bookings alongside increased demand for bonded warehouse solutions to store cargo upon arrival,” Dvorak stated. “Additionally, there’s growing concern over abandoned cargo as importers may choose not to pay the elevated tariff obligations.”
Market Uncertainty During Negotiations
These shifts in booking patterns coincide with the contract negotiation season for Asia-to-U.S. ocean freight agreements. The compounded uncertainty is likely to delay shipments, particularly for goods originating from China, Dvorak added.
Source: https://www.supplychaindive.com/news/ocean-rates-freightos-xeneta-tariffs/745317/
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