Up to $3,000! Freight rates adjusted by multiple shipping companies! Or will continue to rise next month

Container shipping consulting company Linerlytica pointed out that after the new tariff agreement between China and the United States,
the peak season for eastbound trade in the trans-Pacific will come early. Many shipping companies have announced surcharges ranging
 from $1,000 to $3,000.

As we all know, July to September is the peak season for transportation. Given the 90-day buffer period after the tariff reduction,
it is expected that US importers will arrange shipments in advance to avoid possible price increases after the tariff window period closes.

Linerlytica analysts said that the US tariff reduction on China reached 115%, and US imports will face huge pressure in the coming weeks.
The goods originally planned to be put on the shelves in these weeks will now be reversed.

"Imports are expected to increase significantly in the next three months," the analyst said.

At present, many shipping companies have implemented the measures to increase the comprehensive rate increase surcharge (GRI)
on the eastbound trans-Pacific route on May 15, which may be the first real GRI adjustment in months.

Specifically, Ocean Network Shipping (ONE) recently announced a GRI of $1,000/FEU.

The GRIs of CMA CGM, Yang Ming Marine (YML) and ZIM are $2,000/FEU.

The GRIs of Hyundai Merchant Marine (HMM), Hapag-Lloyd (HPL) and Evergreen (EMC) are $3,000/FEU.

Taking the US West Coast route as an example, according to the latest SCFI data (May 9), as many shipping companies cut capacity and
pushed up freight rates in an attempt to ease Sino-US trade tensions, the freight rate from Shanghai to the US West Coast is $2,347/FEU,
up 3.30% from the previous period.

Linerlytica said that since the freight rate increase on May 1, the current spot freight rate has basically stabilized at around $2,400/FEU,
but is expected to soar to more than $3,000 in the next few weeks.

If demand rebounds strongly, freight rates may continue to rise after June because retailers need to replenish inventory after the sharp drop
 in cargo volume from China in April.

With the implementation of the new China-US tariff agreement, freight rates on China-US routes may rise steadily in the future.
Hangbao hereby reminds all shippers and freight forwarders to keep abreast of the latest information and make good transportation plans.