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Container shippers win China-US tariff reprieve, await volume rebound
Published by Global Banking & Finance Review®
Posted on May 12, 2025
4 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 12, 2025
4 min readLast updated: January 23, 2026
The container shipping industry anticipates a recovery as the US and China agree to temporarily reduce tariffs, potentially boosting trade volumes.
By Rachel More and Lisa Baertlein
BERLIN/LOS ANGELES (Reuters) -The container shipping industry on Monday welcomed an agreement between the United States and China to temporarily slash punishing tariffs, saying it expected to be buoyed by a resulting recovery in bookings from China to the U.S.
The United States will cut extra tariffs it imposed on Chinese imports in April to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125% for the next 90 days, the two sides said on Monday.
Trade between the world's two largest economies plummeted in the midst of the standoff, prompting container shipping companies like MSC and Cosco to suspend regular routes or cancel individual voyages. Others considered switching to smaller ships.
It is not yet clear if the reprieve will spark a big rebound in shipments to the United States. Some Chinese factories were preparing for a bounce.
"It's welcome news that these guys are talking and that the numbers have been pulled down from those sky-high levels," said Gene Seroka, executive director of the Port of Los Angeles - the busiest U.S. seaport and the No. 1 gateway for ocean imports from China. He was referring to the tariff rates.
"There's still much more work in front of us," Seroka said, adding that 30% tariffs on goods for the world's leading export nation remain significantly higher than before President Donald Trump took office.
A rebound in shipping demand could send off-contract spot rates for vessel space higher.
Importers of critical goods including hospital supplies like syringes, IV apparatus or ventilators could rush in products if supplies are running low, Seroka said.
Still, other importers may take a wait-and-see approach to 30% tariffs that would drive up prices for shoppers, he said.
Retailers like Walmart, Target and Home Depot account for about half of global container shipping volume.
The month of May is when U.S. retailers usually place orders for year-end holidays. Those goods for Halloween, Thanksgiving and Christmas typically land at U.S. ports between August and October.
"I don't know that many retailers are going to say, 'Hey, for our biggest time of the year, 30% is OK'," Seroka said.
Mike Abt, co-president of family-owned Abt Electronics in Chicago, said the family-owned seller of items including refrigerators, microwaves, computers and televisions is sitting tight and working down inventories squirreled away before tariffs went live.
"Everyone wants consistency and that's been the hard part of this whole thing. It's like a game of Risk, you really don't know what the right answer is," Abt said, referring to the popular strategy board game.
TURNING THE SHIP?
Last month, London's Drewry Shipping Consultants Ltd said 2025 worldwide container port volume could fall 1% due to Trump's trade policies, rather than grow 2.3% as previously expected.
"Assuming no hiccups along the way (in China-U.S. trade talks), we can safely expect to raise our growth projections for the container market shortly," Simon Heaney, Drewry's senior manager of container research, said on LinkedIn.
To that end, German container shipping firm Hapag-Lloyd said it expects bookings from China to the U.S. to increase.
Hapag-Lloyd continued sailing during the collapse of Chinese cargo shipments to the U.S., albeit with plans to downsize ships. That move could put the carrier at an advantage over rivals that culled sailings, should customers rush in goods during the 90-day reprieve.
"Originally, we had planned to use smaller ships for transports from China to (the U.S. coasts) but may reverse that if demand is strong," Hapag-Lloyd said in a statement.
Maersk CEO Vincent Clerc said on Thursday that in two weeks the Danish firm had removed 20% of capacity on the China-to-United States route and transferred it to other routes.
Maersk could switch that back as quickly if customers ask for it, Clerc said.
The Dow Jones Transportation Average, a barometer for the U.S. sector, gained 7% on Monday. Elsewhere, shares of Hapag-Lloyd and Maersk posted gains of roughly 13% and 11%, respectively, while stock of China's Cosco rose 2%.
Tariffs at the 20% level did not stop shippers from front-loading in March and April, so the current 30% level should encourage shippers to pull forward demand to beat a possible August tariff hike, said Judah Levine, head of research at freight booking and payments platform Freightos.
Average transit time on the Transpacific trade is 22 days, so customers will take the 90-day window of opportunity to ship as many goods as possible into the United States, said Peter Sand, chief analyst at pricing platform Xeneta. "This will put upward pressure on freight rates."
(Reporting by Rachel More in Berlin and Lisa Baertlein in Los Angeles; Additional reporting by Jacob Gronholt-Pedersen in Copenhagen; Editing by Matthias Williams, Bill Berkrot and Matthew Lewis)
The article discusses the temporary tariff reduction agreement between the US and China and its impact on the container shipping industry.
The reprieve is expected to boost container shipping bookings from China to the US, although high tariffs may still deter some importers.
Companies like MSC, Cosco, Hapag-Lloyd, and Maersk are mentioned in relation to the shipping industry's response to the tariff changes.
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