Blog

Overview
In recent weeks, the cost of shipping a full container (40HQ) from China to the U.S. West Coast has surged by more than $3,000. This price hike, driven by policy changes and market strain, is affecting thousands of exporters, importers, and logistics providers.

Why Freight Rates Are Rising So Quickly

  1. Temporary Tariff Reductions Have Triggered a Shipping Rush
    A 90-day U.S.-China tariff relief period (starting mid-May 2025) has lowered tariffs from 145% to 30%. Many American importers are rushing to stock up before the window closes, driving a surge in demand for space on vessels.
  2. Shipping Lines Are Imposing New Surcharges
    Carriers like CMA CGM and MSC have introduced Peak Season Surcharges (PSS) and Emergency Bunker Surcharges (EBS) — in some cases adding over $2,000 per container — to cope with excess demand.
  3. Available Vessel Space Is Limited
    Carriers are intentionally skipping sailings (known as “blank sailings”) to stabilize pricing, resulting in reduced weekly capacity and more competition for space.
  4. Port Congestion Is Causing Delays
    Major U.S. ports like Los Angeles and Long Beach are experiencing backlogs due to high container volumes, leading to slower unloading and longer overall transit times.
  5. Container Shortages Are Creating Equipment Bottlenecks
    Imbalanced container distribution is also disrupting the supply chain, especially in South China, where equipment availability is tight.

The Impact on Businesses

  • Increased Costs: The rising cost of ocean freight is shrinking profit margins.
  • Uncertain Transit Times: Port delays and vessel space issues make it difficult to guarantee delivery schedules.
  • Complicated Quoting: Daily rate fluctuations make it harder for forwarders and sellers to give accurate quotes to buyers.

How to Manage the Situation

Book shipments early — 2 to 3 weeks in advance is now the norm.
Consider alternative routes — East Coast and Gulf ports may have shorter waiting times.
Explore LCL (less-than-container load) — For small orders, it may be more flexible than full containers.
Work with reliable freight partners — An experienced logistics provider can help secure space and offer transparency.