The tariff truce between the US and China has caused a 300% increase in container bookings between the US and China, and Hapag-Lloyd anticipates continued growth in volume.
On May 12, 2025, the United States and China reached a 90-day tariff ceasefire agreement, substantially lowering punitive tariffs, resulting in a rebound in the trans-Pacific shipping market. According to Vizion data, container bookings for imports from China to the U.S. surged by nearly 300% within a week after the agreement took effect. Hapag-Lloyd reported that bookings on U.S. routes increased by 50% compared to the same period the previous week, and transportation demand is expected to continue rising in the coming weeks, reflecting the swift release of trade demand that had been stifled by high tariffs.
Key Updates
05/15 04:56
The tariff truce between the US and China has caused a 300% increase in container bookings between the US and China, and Hapag-Lloyd anticipates continued growth in volume.
On May 12, 2025, the United States and China reached a 90-day tariff ceasefire agreement, substantially lowering punitive tariffs, resulting in a rebound in the trans-Pacific shipping market. According to Vizion data, container bookings for imports from China to the U.S. surged by nearly 300% within a week after the agreement took effect. Hapag-Lloyd reported that bookings on U.S. routes increased by 50% compared to the same period the previous week, and transportation demand is expected to continue rising in the coming weeks, reflecting the swift release of trade demand that had been stifled by high tariffs.
Background of the US-China Tariff Ceasefire
On April 2nd, 2025, US President Trump announced an across-the-board 145% tariff on Chinese imports. China immediately retaliated by imposing a 125% tariff on US goods. This move led to a near standstill in bilateral trade activities, with many US importers halting orders and a significant drop in container shipping volumes.
However, on May 12th, both the US and China announced a temporary agreement to suspend the tariff increases for the next 90 days. According to the agreement, the US would reduce the tariff rate on Chinese goods from 145% to 30%, while China would lower the rate on US goods from 125% to 10%. This policy adjustment immediately sparked a market reaction, with importers rushing to restart orders to replenish stock during the tariff relief period.
Container Booking Volume Nearly Triples
According to data from container tracking software provider Vizion, the average booking volume of 20-foot equivalent units (TEU) imported by the US from China reached 21,530 in the week ending May 14th, 2025, a staggering 277% increase from the previous week's 5,709. Vizion Vice President Ben Tracy noted, "With this temporary agreement in effect, we are indeed starting to see a rebound in booking volumes."
This data indicates a swift market response to the tariff suspension, with importers evidently trying to accelerate purchases during the 90-day window to build inventory and prepare for the year-end consumer peak season.
Hapag-Lloyd Observes Strong Rebound in Shipping Demand
As the world's fifth-largest container shipping company, Hapag-Lloyd was quick to feel the market changes. CEO Rolf Habben Jansen stated in a media interview on May 14th, "We've seen a surge in container volumes over the past few days, and now we have to see how long this will last." He noted that the company's booking volume on the US-China route at the beginning of the week increased by 50% compared to the same period last week, a "quite significant" rise.
Jansen further stated, "I expect freight volumes between China and the US to increase further, which is a trend we've already noticed in the past few days." He added that Hapag-Lloyd is adjusting its vessel deployment, including deploying larger ships, to meet the sudden surge in shipping demand.
Context of Low Shipping Volumes Before the Turnaround
Before this surge, Hapag-Lloyd faced pressure from a significant drop in orders on the US-China route. Jansen revealed that in the weeks before the tariff reduction, the company's average booking volume on the US-China route fell by about 20%, with some periods even reaching 30%. To cope with the shrinking demand, Hapag-Lloyd and its partner Maersk considered adjusting vessel deployment but did not take large-scale suspension measures.
The rapid rebound in shipping volumes marks a clear turning point for Hapag-Lloyd. Jansen noted that although it is currently difficult to predict how long this demand will last, the company has already seen a "very strong short-term rebound."
How Shipping Companies Are Responding
In response to the sudden surge in demand, Hapag-Lloyd is actively adjusting its operational strategies. In addition to deploying larger vessels, the company is reevaluating its vessel scheduling plans within the "Gemini Cooperation Alliance" jointly operated with Maersk to more effectively match the capacity needs of the US-China route.
Furthermore, Hapag-Lloyd stated that while there's no port congestion at the moment, the company will closely monitor vessel scheduling and port reception capacity in the coming weeks to avoid logistics bottlenecks caused by overly concentrated shipments.
Market Response and Future Outlook
According to observations from multiple logistics and shipping data agencies, this wave of shipping activity is primarily driven by US importers aiming to complete restocking before the 90-day tariff relief period ends. Agencies like Freightos and Drewry reported a significant reduction in capacity on the Asia-North America route in April, but some carriers have already begun restoring flights to meet the rising demand.
Hapag-Lloyd stated that apart from the US-China route, orders in other regions have remained steady, with no similar dramatic fluctuations. Jansen emphasized that the company will continue to monitor market changes and adjust capacity deployment based on actual demand.
