Topic of the week: Asia-to-US Bookings Surge as China Tariff Reduction Looms
The 90-day tariff reduction on China-based goods has sparked a surge in bookings from Asia to the US, according to Gene Seroka, Executive Director of the Port of Los Angeles. This surge is driven by shippers rushing to import goods before the reprieve expires, which is expected to drive an uptick in bookings.
The Port of Los Angeles processed 842,806 twenty-foot equivalent units (TEUs) in April, a 9.4% year-over-year increase, making it the third-best April on record. Loaded imports rose 5% YoY, primarily due to importers pushing to move cargo before tariffs take effect. However, prices remain elevated, and shipping activity is still impacted. Seroka expects the uptick in bookings to be moderate, with less than 30% of the containers seen during the peak of the COVID-19 pandemic.
Cargo flows for June and July remain uncertain, with cancellations already reported. In May, 17 of 80 sailings were cancelled, including 11 China port calls. As of the press briefing, 10 cancellations are slated for June. Despite the uncertainty, the Port of Los Angeles has handled over 3.3 million TEUs since the start of 2025, a 6.2% year-over-year increase. Empties were up 25% YoY to 275,183 container units in April.
The surge in bookings is also driven by the traditional peak season for imports, which typically occurs in May and June. May is traditionally the month where a lot of purchase orders go in for the year-end and Christmas holidays, and it typically takes about three months to send an order to a factory, have those goods made, and get them ready to ship from Asia to the US.
Additionally, there may be a stronger flow of goods, such as hospital supplies and some manufactured parts and components, as inventory dwindles. This could lead to a further increase in bookings and cargo volumes.
Overall, the market is experiencing a mix of increased bookings and uncertainty, driven by the tariff reduction and ongoing trade negotiations between the US and China. As the situation continues to unfold, it will be important to monitor cargo flows and shipping activity to gauge the impact on the global supply chain.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have increased by 6.07% from $2,320/FEU to $2,461/FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have risen over the last two weeks, increasing by 3.9% to $3,519/FEU.
- Global container spot prices have risen over the last two weeks, and are now sitting at $2,090/FEU, a 3.77% increase over the last two weeks and a 38.7% decrease from spot rates this time in 2024 according to the Freightos Baltic Index (FBX)
Air:
- Global Air Freight spot rates currently sit at $2.35, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $1.88 (100-3000kg), says FAX, decreasing by 1.57%
- Europe to Asia, Greater China spot rates currently sit at $1.16 (100-3000kg), says FAX, decreasing by 1.6%
That’s all for this week’s update…
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