Overview

• The US-China 90-day tariff suspension, effective May 12, has triggered a sharp increase in trade, with container bookings from China to the US surging by 275% in a week.
• Freight rates have spiked, with spot rates from Shanghai to Los Angeles rising 16% and key indices like the West Coast index jumping 31.7%.
• West Coast ports, including Los Angeles and Long Beach, are preparing for capacity constraints but anticipate a muted peak season due to ongoing uncertainty.
• Carriers such as ZIM are reinstating previously suspended services, including the ZX2 line, to accommodate the surge in trans-Pacific demand.
• Experts warn that the surge could lead to supply chain disruptions, higher consumer costs, and reduced inventory levels as businesses race to avoid potential tariff re-escalations in July.