Shipping Rates Soar as China-U.S. Export Rush Overwhelms Ports
By Bao Zhiming and Denise Jia
Shipping rates on China-U.S. routes are skyrocketing at record-breaking speeds as exporters scramble for space and global freight markets buckle under the pressure of a post-tariff export boom.
“Rates are changing by the day,” said one freight forwarder in Shanghai. “We expected an increase, but not this fast. Clients are fighting for bookings, and even trucking costs are climbing.”
Shanghai Shipping Exchange reported that its Containerized Freight Index (SCFI) surged by 30.7% week-on-week on Friday, reaching 2,072.71 points — the largest single-week increase in years. Rates from China to America’s West Coast jumped 57.9% to $5,172 per 40-foot equivalent unit (FEU), while rates to the East Coast rose 45.7% to $6,243 per FEU.
Ningbo Shipping Exchange saw a similar spike. Its Containerized Freight Index (NCFI) climbed 51.6% to 1,676.25 points, with West Coast rates up a staggering 89.2% and East Coast rates rising 69.7%. These are the highest weekly increases ever recorded on China-U.S. routes for both indexes.
By comparison, only five weeks ago, at the height of tariff uncertainty on April 25, shipping rates to the West and East Coasts stood at $2,141 and $3,257 per FEU respectively — which means they have climbed 142% and 92%.
Shanghai Shipping Exchange put the price surge down to an aggressive “export rush” as shippers raced to move goods. Despite capacity returning to pre-tariff war levels, congestion and tight space continue to drive up prices. Ningbo authorities cited strong demand and delays in redeploying vessels as contributing factors.
Analysts expect the rate rises to continue. According to Huatai Futures, the French shipping company CMA CGM’s West Coast rates will rise to $8,346 per FEU by mid-June, and Hapag-Lloyd’s East Coast rates could hit $9,273 per FEU.
Freight forwarders told Caixin that Shanghai and Shenzhen’s Yantian port are experiencing long lorry queues as terminals are flooded. “Sometimes truckers wait several hours just to a drop container,” one said.
Yang Yanbin, deputy general manager at Shanghai International Port Group, noted that during the week of May 19–25, export volume to Americs increased 49.4% to 59,000 20-foot containers (TEUs). “All suspended transpacific sailings have resumed, bringing weekly service levels back to 42 sailings,” he said.
A shipping executive said: “Top carriers have been cautious in adding capacity, so demand has outstripped supply, causing a scramble for slots.”
Qian Long, head of Topocean Group’s Shanghai-based international freight unit, said that shipping volumes plummeted in late April due to tariff fears, prompting carriers to redeploy their vessels elsewhere. As demand rebounded, many were en route back, creating a short-term capacity crunch.
To manage the crisis, Shanghai’s Yangshan Port has launched a task force implementing measures such as optimized berth allocation, expedited crane and labor scheduling and close coordination with forwarders and carriers to stabilize pricing.
Shipping lines are rushing to restore transpacific capacity. Korea’s KMTC will launch its new APX service to America’s West Coast on June 18. ZIM, the Israeli international shipping line has already reinstated its ZX2 fast service. The Premier Alliance — ONE, HMM, and Yang Ming — has added a new service and upgraded two others.
Ding Zejuan, Greater China president of Maersk, said the volume spike began after May 12, leading to missed bookings and rolled containers due to slow vessel redeployment. “We’re working to clear backlogs and will strictly control slot availability to avoid overbooking,” she said.
Looking ahead, Ding said Maersk’s capacity plans depend on two factors: the strength of demand and how efficiently the market can redeploy ships. “Adjustments will lag demand, so we’ll stay agile and make changes step by step.”
Huatai Futures predicts capacity on China-U.S. routes will rise significantly in June. Weekly average capacity is expected to hit 328,000 TEUs — up 35% from May’s 243,400 TEUs — with a peak of 354,000 TEUs projected for the week of June 9–15.
Contact reporter Denise Jia (huijuanjia@caixin.com)
caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.
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