US demand remains the dominant force shaping global shipping conditions this week, with the temporary suspension of tariffs between China and the US driving an intensified surge in bookings. Worsening equipment shortages at origin are impacting Asia–Europe services and causing disruption across all major shipping lanes.
Surge in US Demand Drives Container Shortages
Following the 90-day tariff reduction agreement between the US and China, retailers are continuing to front-load bookings to ensure cargo arrives before the mid-August deadline. With only a narrow shipping window remaining, demand is surging, adding further pressure to production schedules and outbound logistics from Asia.
This sharp increase in demand is worsening the already strained supply of equipment. Container shortages are becoming more acute in key export hubs such as Shanghai, Ningbo, and Qingdao, with Xiamen facing severe challenges in both space and equipment availability. The outlook suggests that conditions are likely to deteriorate further until the tariff window closes, unless a longer-term trade deal is announced to stabilise flows.
Transpacific Rates Rise Sharply
The spike in US-bound volumes has caused rates on transpacific routes to rise significantly, well above current levels on the Asia–Europe market. As a result, carriers are prioritising equipment and space allocation for Pacific trade lanes.
This shift is affecting overall container flows and contributing to a general tightening of space availability from Chinese ports.
Asia–Europe Services Under Pressure
The Asia–Europe market is beginning to feel the strain. The core challenge remains container availability, as transpacific and Europe-bound cargo draws from the same limited pool of equipment.
Availability is tightening across the board, and origin ports are beginning to show early signs of congestion. Ships are increasingly off-schedule, and freight rates are on the rise in response to the imbalance. While demand on this route has not spiked, the squeeze on equipment is having a direct impact on rate levels. One carrier has already introduced a Peak Season Surcharge (PSS), and further surcharges are likely to follow.
Outlook: Extended Equipment Imbalances
With high volumes heading to the US ahead of the tariff deadline, there is a growing risk of congestion at US destination ports once the cargo arrives. This may be compounded by delays in repositioning empty containers back to Asia, adding further pressure to already strained container availability.
Unless new agreements are reached between the US and China, customers should expect continued disruption to schedule reliability, elevated rates, and tight equipment availability in the weeks ahead.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team at 01376 533039 or email [email protected].
