Major Shipping Firms Halt Asia-US Routes Amid Trump-Era Tariffs, Impacting 1.3 Million Containers Annually

Major global shipping companies, including MSC, ZIM, and the Ocean Alliance, have suspended six weekly Asia-to-U.S. routes, affecting over 1.3 million 40-foot containers annually. This move follows a 145% tariff on Chinese imports imposed by the Trump administration in April 2025, leading to a collapse in container bookings. The suspensions impact routes to U.S. West, East, and Gulf Coast ports. The industry is also seeing increased blank sailings and vessel downsizing as carriers adjust to reduced demand and stabilize freight rates.

Tariffs Trigger Route Suspensions Across Key Trade Lanes

The latest wave of service suspensions comes in direct response to the 145% tariff imposed on Chinese imports by the Trump administration in April 2025, alongside a broader 10% minimum tariff on all U.S. trading partners. These measures have led to a collapse in container bookings from China, prompting carriers to slash capacity in an effort to stabilize freight rates and avoid operating underutilized vessels.

According to maritime consultancy eeSea, six weekly services have been suspended, including four to the U.S. West Coast, one to the East Coast, and one to the Gulf Coast. The affected services are operated by Mediterranean Shipping Company (MSC), ZIM Integrated Shipping Services, and the Ocean Alliance, which includes Cosco, Evergreen, CMA CGM, and Orient Overseas Container Line (OOCL).

The combined weekly capacity of the suspended routes totals 25,682 forty-foot equivalent units (FEUs), translating to over 1.3 million FEUs annually. These containers typically carry a wide range of consumer and industrial goods, from electronics and apparel to auto parts and manufacturing inputs.

MSC and ZIM Scale Back East Coast Services

In a separate but related move, MSC and ZIM have announced the suspension of their jointly operated Empire/ZNS and Pelican/ZSL services on the Far East–U.S. East Coast corridor. These changes, effective from the 19th week of 2025, are part of a broader restructuring of their service network in response to declining demand.

The remaining services—Amberjack/ZCP, Lone Star/ZGC, America/ZCP, and Emerald/ZXB—will continue to operate with updated port rotations. These routes connect major Asian ports such as Yantian, Ningbo, Shanghai, and Singapore with key U.S. East Coast ports including New York, Baltimore, Savannah, and Charleston.

Blank Sailings Surge as Carriers Cut Capacity

The industry-wide response to the tariff-induced downturn has included a sharp increase in blank sailings—canceled voyages on scheduled routes. Data from Drewry shows that blank sailings on the Asia–North America West Coast route surged from 9% in late March to 24% by early May. On the East Coast, capacity reductions reached 22% in April and 18% in May.

MSC, the world’s largest container carrier, canceled 30% of its scheduled transpacific voyages in April, the highest among all operators. The Premier Alliance—comprising Ocean Network Express (ONE), Hyundai Merchant Marine (HMM), and Yang Ming—followed with a 20% blank sailing rate in May.

These capacity cuts are not limited to full service suspensions. Carriers are also downsizing vessels and consolidating cargo to maintain economies of scale. Maersk and Hapag-Lloyd, partners in the Gemini Alliance, have not suspended services but have replaced larger ships with smaller ones due to reduced bookings.

Retailers Pull Back as Import Volumes Plunge

The shipping industry’s retrenchment mirrors a broader pullback by major U.S. retailers. Companies like Amazon and Walmart, which together account for nearly half of global container trade, have paused or canceled factory orders in response to the steep tariffs. The cost of goods made in China has more than doubled for many importers, leading to a sharp drop in demand.

Forecasts from the National Retail Federation (NRF) and Hackett Associates show a dramatic decline in U.S. container imports. May volumes are now expected to fall 12.9% year-over-year to 1.81 million TEUs, down from a previously forecasted 2.14 million. June and July projections have also been revised downward, with July imports now expected to drop 23.4% year-over-year.

The first half of 2025 is projected to see only a 0.3% increase in total import volume compared to the same period in 2024, a stark contrast to the 5.7% growth forecasted before the tariffs were announced.

Strategic Retrenchment to Preserve Profitability

Shipping companies are using service suspensions and blank sailings as strategic tools to manage capacity and protect profitability. By aligning vessel deployment with reduced demand, carriers aim to avoid rate collapses and maintain operational efficiency.

Alan Murphy, CEO of Sea-Intelligence, noted that blanked capacity accounted for 19% of planned Asia–North America West Coast capacity and 17% of East Coast capacity in April and May combined. These figures underscore the scale of the industry’s response to the trade disruption.

Despite the downturn, some analysts caution against overestimating the damage. Ben Hackett, founder of Hackett Associates, emphasized that while carriers are consolidating services, reports of a broken supply chain are exaggerated. “This is not the precursor, it is the proof of a drop in economic activity,” said Simon Sundboell, CEO of eeSea.

References

• MSC and ZIM downsize joint Far East-US East Coast service network - Container News
• U.S. Container Imports Set for Historic Decline as New Trump Tariffs Impact Supply Chain
• Container shipping firms cull Asia-US service as Trump tariffs collapse trade
• SHIPPING: Asia-US container rates flat to higher as capacity reduction offers support
• First Drop for Inbound Containers Forecast After Surge Ahead of Tariffs