Since the beginning of this month, container shipping fees from China to the United States have dropped by more than half. The reason is that President Trump imposed a 145% tariff on Chinese goods, causing a sharp decline in imports from China to the United States. However, the rebound in trade volume after the reduction of tariffs between the US and China was lower than expected.
According to a report by Reuters on Thursday, June 26th, Omar Nokta, an analyst at JFup Shipping, stated that the shipping fees from Shanghai to the US West Coast are a key indicator of Pacific Ocean shipping rates. After peaking at about $6,000 per container earlier this month, the fees seem to have dropped to recent lows, with each 40-foot container now costing $2,500.
Following Trump’s reduction of tariffs on China from 145% to 30%, shipping fees initially surged. However, maritime consultancy Drewry stated on Thursday that the retreat in fees “indicates that the recent surge in US imports may not be as sustained as we had imagined.”
The Drewry Global Container Index, after rising for five consecutive weeks, has now fallen for the second week in a row by 9%.
American consumers have not yet felt the impact of the high tariffs because many importers stockpiled goods before the new tariffs took effect. However, Walmart, the world’s largest retailer and importer through seaborne freight, had warned of price hikes starting in late May and June.
July 9th marks the deadline for the US to impose additional reciprocal tariffs on more countries. It remains unclear whether Trump will reduce tariffs to the lowest benchmark of 10% or take more aggressive measures.