Key container shipping freight indexes have surged by as much as 30% over the last week as shippers rush to meet a pause 145% tariffs on Chinese imports into the US.
The Shanghai Containerized Freight Index (SCFI) for the week ended 30 May was up 30% at 2072.71 points an increase of 486.5 points on the previous week.
The sharp rise in container spot rates comes as the market reacts to an agreement earlier in the month between the US and China which saw a 145% tariff on Chinese imports reduced to 30% for a period of 90 days from 14 May while the two sides continue negotiations on reciprocal trade relations.
Major lines reacted to the news with the reversal of decisions suspend services between China and the US. According to Alphaliner these included Zim with the resumption of its Central China Express Service and MSC with new sailings for the China – US West Coast ‘Orient’ service, which had previously had no sailings advertised after 3 May.
A number of smaller lines are also reported to have re-entered the Transpacific including KMTC, Heung-A, and CULines.
Analyst Linerlytica reported that over the next four weeks lines will increase capacity by around 50% on the Transpacific trade to an average of 560,000 teu from 377,000 teu in the week beginning 5 May.
Meanwhile on Thursday the Drewry’s World Container Index (WCI) reported a more modest, but still significant increase of 10% over the previous week to $2,508 per feu. Drewry noted the WCI had increased 21% over the past three weeks in response to the Trump administration’s pause on tariffs.
In the past week freight rates between China and the US have risen sharply. The rate for Shanghai to Los Angeles was up 17% at $3,738 per feu, while Shanghai – New York increased 14% to $5,172 per feu.
“The latest sudden, short-term strengthening in supply-demand balance in global container shipping has reversed the trend of declining rates which had started in January,” Drewry commented.
