Tariff wave hits global shipping | US shipping enters "frozen period"

Under the heavy shadow of the US tariff policy, rumors of "large-scale suspension of shipping companies" are rampant. It is worth noting that while the number of voyages to the US has dropped sharply, routes such as Asia-Europe, Southeast Asia, and South America have shown a counter-trend growth trend.

Since the United States officially implemented the reciprocal tariff policy on April 2, high tariffs have been like a boulder thrown into a calm lake, causing huge waves in the foreign trade industry, and the shipping market has also been deeply affected. Faced with the changes, foreign trade merchants are actively expanding their business territory and seeking diversified layout; the shipping industry is also unwilling to be passive and is working hard to open up new channels for Chinese goods to go to sea. The European, South American and Southeast Asian markets have risen in line with the trend and become an "alternative solution" for foreign trade companies to avoid risks and open up new situations, outlining a new picture of the reshaping of the shipping trade pattern.

Shipping stagnation and capacity contraction have caused US shipping to enter a "frozen period"

Currently, the suspension of flights to the US market has become the focus of the industry's attention and is also a signal light for the future direction of the foreign trade market.

The latest updated weekly container shipping report from shipping consultancy Drewry shows that 83 voyages will be cancelled on the east-west trunk routes in the next five weeks, accounting for 12% of the planned 713 voyages. Of these 83 voyages, about 53% are eastbound trans-Pacific routes (referring to routes starting from Asia, passing through the Pacific Ocean and finally arriving in North America), 29% are Asia-Northern Europe and Mediterranean routes, and 18% are westbound trans-Atlantic routes (mainly referring to the shipping channel connecting Europe and the east coast of America).

The picture comes from the Internet

This data shows that the capacity of the China-North America route will be greatly reduced, and it is also the route with the greatest changes among the world's major shipping channels.

Data provided by Flexport to Interface News show that the recent increase in empty flights to the United States has led to a significant reduction in capacity in April. The market's capacity has been reduced by approximately 20%, and the available space has become even tighter due to the adjustment or temporary suspension of services on some routes.

The Global Times reported that container bookings to the United States surged in the first quarter, but are now showing signs of "collapse," with "booking freezes common" for U.S. import containers. Data provided by trade data platform Vizion showed that due to tariff uncertainty, container bookings to the United States fell 67% from the previous week, and container bookings from the United States fell 40%.

At the same time, US ports have also issued warnings of falling import volumes. The Port of Long Beach in California and the Port of Los Angeles are the two ports with the largest throughput in the United States. According to the Global Times, senior executives of both ports have warned that port throughput will decline in the future. The cargo volume of the Port of Long Beach may plummet by 20% in the second half of 2025, and the Port of Los Angeles expects its throughput to drop by 10% starting in May, and it is expected that the port will have 12 canceled or blank voyages in May.

It is reported that the Ocean Alliance (OA), which consists of four shipping companies, COSCO, CMA CGM, Evergreen Marine (EMC) and Orient Overseas Container Line (OOCL), will cancel three routes to Los Angeles at the end of April, and ZIM Shipping Company also plans to suspend operations for two months.

"Tax Breaking" drives the restructuring of the structure, and the European and Asian markets have become new blue oceans for foreign trade

At present, Latin American routes, European routes and Southeast Asian routes are all the focus of attention.
On April 10, 2025, local time, the European Commission announced that it had reached a consensus with China and the two sides would start negotiations to replace the current tariffs on electric vehicles with a "minimum import price" mechanism. On April 11, the EU and China reached an agreement to replace the original tariffs with a "minimum selling price commitment". This sent a positive signal to the market, and foreign trade companies and sellers began to increase their layout in the European market. "The foreign trade companies we communicated with have diversified their logistics needs, including those exporting from China to Europe and those exporting from Southeast Asia to Europe. The demand for overseas logistics solutions has increased." Yunquna said.

The picture comes from the Internet

As for Southeast Asian routes, the volume of cargo is improving due to the impact of tariffs and the approaching Labor Day, and freight rates are expected to rise overall. Especially in late April, some ships may start late, stop sailing, or skip ports, and the shipping capacity is tight. It is expected that around May Day, routes such as Thailand, Vietnam, and Cambodia may be full, and customers are advised to book in advance.

The South American market is also an area that China's foreign trade industry is actively expanding. In mid-April, the direct route from Zhuhai to Santana Port in Brazil officially set sail at the Gaolan Port International Container Terminal in Zhuhai Economic and Technological Development Zone. The "Changmin" on this maiden voyage was loaded with home appliance assembly parts from Gree Group's Brazilian factory, green organic fertilizers provided by China United Latin America (used to improve the problem of soil compaction in Brazil), photovoltaic panel samples and accessories, etc.
The route starts from Gaolan Port, passes through the Strait of Malacca and the Cape of Good Hope, and goes directly to the Ports of Santana and Salvador in Brazil, reaching Brazil's core mineral and agricultural product production areas, the northeastern industrial belt, and radiating to the entire emerging market in South America.

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Source: Jiemian News, Global Times and other online materials

Disclaimer: This article is for industry information sharing and reference only.