Container shipping traffic is plummeting along transpacific sea routes as the United States’ tariff policies cast a chill over global trade, forcing shipping companies to cancel voyages at short notice due to lack of demand.
Cargo bookings for the next three weeks are reported to be down 30-60 per cent in China and 10-20 per cent in the rest of Asia, according to market intelligence firm Linerlytica, as sky-high US duties effectively make it impossible for many Chinese exporters to sell to America.
“The US-China standoff continues to keep container market sentiment poor with US tariff concessions far from sufficient to restore transpacific volumes,” Linerlytica said in a note on Tuesday.
China’s ports saw an immediate drop in demand following US President Donald Trump’s announcement of plans to slap so-called “reciprocal” tariffs on dozens of countries in early April, according to data from the Ministry of Transport.
Container throughput at Chinese ports tumbled 6.1 per cent, week on week, during the period of April 7-13, reversing a 1.9 per cent rise a week earlier.
Many transpacific shipping companies have resorted to blank sailings, which refers to carriers cancelling scheduled voyages, Danish consultancy Sea-Intelligence said in a note on Sunday.
The upcoming Labour Day holiday will further dampen cargo demand in May, and could force carriers to cancel additional sailings over the coming weeks, according to Linerlytica.
