The United States and China have agreed to a 90-day suspension of their escalating trade war, following a sharp rise in tariffs exceeding 100%. During weekend negotiations, both countries announced that planned tariff hikes—up to 125% on imports from each other, originally set to take effect on April 2—would be largely suspended. Under the new agreement, both sides will retain only a 10% base tariff.
However, the United States will continue to enforce a previously implemented 20% tariff on Chinese imports in response to the fentanyl crisis. As a result, the effective U.S. tariff rate on Chinese goods will stand at 30%, while China will impose a 10% tariff on American goods during these 90 days.
Surge in Shipping Demand Triggers Capacity Constraints
The temporary rollback of tariffs—particularly the U.S. reduction from 145% to 30%—has prompted importers to accelerate shipments from China, taking advantage of the limited-time lower tariffs to mitigate the risk of future tariff hikes.
U.S. retailers and importers are now stockpiling inventory before the Black Friday and Christmas holiday season, causing a sudden spike in ocean freight demand.
Earlier in the year, the steep rise in tariffs led to a significant drop in container bookings on Asia–North America routes, with container volumes falling by nearly 400,000 units. With the suspension in place, import volumes are rebounding sharply, raising concerns over port congestion, equipment shortages, and limited vessel capacity—all of which are expected to place upward pressure on freight rates.
Freight Rates Climb Amid Growing Demand
Current ocean freight rates from China to the U.S. are approximately $2,200 per container. However, with demand surging and additional surcharges being introduced, rates will climb to over $3,500 per container in the coming weeks.
Industry analysts warn that if no long-term tariff agreement is reached by the end of the 90-day window, further market volatility and rate hikes could follow.
How Companies Can Respond to Upcoming Shipping Challenges
With importers rushing to capitalize on temporary tariff reductions, shipping costs are projected to surge, leading to potential capacity constraints across the global supply chain. A growing backlog of unshipped orders from recent weeks and a wave of new shipments are likely to strain logistics networks. Importers should prepare now for possible supply disruptions shortly.
To minimize delays and reduce the risk of cargo being rejected during this busy period, companies are advised to ship as early as possible. Businesses that act swiftly will be better positioned to navigate expected freight rate hikes and logistics bottlenecks in the coming months.
Shipping capacity and freight rates are expected to fluctuate rapidly. Shippers should consider booking ocean freight space from China to the United States in advance to stay ahead. Hongocean Freight Forwarding can help secure capacity and provide reliable solutions to minimize disruption and avoid unexpected rate spikes.
Choose Hongocean as Your Freight Forwarding Partner
Partnering with a reliable freight forwarder is key to optimising your supply chain and simplifying complex international shipping processes.
At Hongocean, we make global logistics easy by handling critical tasks such as documentation, customs clearance, and shipment coordination. We also provide competitive freight quotes and various value-added services tailored to your needs.
Our Core Services Include:
- Air & Ocean Freight: Flexible shipping options including Full Container Load (FCL) and Less-than-Container Load (LCL) to suit your cargo volume and timeline.
- Global Reach: Leverage our strong international network of carriers and logistics providers to source products from major global trade hubs.
- Customs Clearance: We handle the entire customs process on your behalf, ensuring compliance and efficiency at every stage.
- Real-Time Shipment Tracking: Our advanced tracking tools keep you informed with full visibility throughout the shipping journey.
- Cargo Insurance: Safeguard your goods with comprehensive insurance coverage against potential damage or loss.
- Pre-Shipment Inspection: Ensure product quality, packaging integrity, and proper labelling before departure through our thorough pre-shipment inspection services.
Our dedicated support team is available 24/7 via live chat, phone, or email. Whether you’re booking a shipment, navigating our platform, or seeking logistics advice, we’re here to help every step of the way.
