In a significant shift for the global shipping industry, major container shipping lines have announced substantial rate increases and peak season surcharges (PSS) for trans-Pacific routes, driven by a rebound in demand following a U.S.-China tariff reduction agreement. The 90-day tariff relief window has sparked a frenzy among shippers eager to move goods across the Pacific, pushing freight rates upward and straining available vessel capacity. According to industry experts, this surge marks the onset of an early peak season, with implications for logistics costs and supply chain dynamics.
Tariff Relief Fuels Demand Surge
The recent U.S.-China trade negotiations, which de-escalated tariff tensions, have triggered a sharp recovery in shipping demand. After a steep decline—21% in Chinese exports to the U.S. and nearly 14% in imports last month—shippers are now rushing to capitalize on the temporary tariff relief. This has led to a 277% spike in container bookings from China to the U.S., with the seven-day rolling average for bookings soaring from 5,709 TEUs (twenty-foot equivalent units) on May 5 to 21,530 TEUs by mid-May, according to Vizion’s strategic business development VP, Ben Tracy.
American importers, wary of potential tariff hikes in future trade talks, are scrambling to ship goods at lower costs. Reports from Chinese manufacturers highlight U.S. clients reactivating canceled orders and requesting expedited production. For instance, a South China shoe factory owner noted a U.S. customer’s urgent request to resume May orders, while an electronics manufacturer is redirecting goods to Vietnam for storage pending trade outcomes. Retailers like Florida-based Basic Fun! are also accelerating shipments to ensure holiday season inventories, avoiding potential supply chain disruptions.
Shipping Lines Respond with Rate Hikes and Surcharges
With demand rebounding, container shipping companies are seizing the opportunity to raise freight rates, which had recently hit their lowest levels since December 2023. The Drewry World Container Index reported global freight rates at just above $2,076 per 40-foot container last week. However, the trans-Pacific route is now seeing significant increases, with rates to the U.S. West Coast expected to exceed $3,500 per 40-foot container this week.
Here’s a breakdown of the announced rate hikes and surcharges:
Maersk: Effective May 15, 2025, Maersk introduced a PSS for shipments from the Far East (excluding mainland China and Hong Kong) to the U.S. and Canada. Rates are $1,000 for 20’ containers and $2,000 for 40’ and 45’ containers.
MSC (Mediterranean Shipping Company): Starting June 1, 2025, MSC will implement a PSS of $1,600–$2,000, pushing base port rates for U.S. West Coast destinations like Vancouver, Long Beach, Los Angeles, Oakland, and Seattle back to $6,000 per 40’ container.
COSCO Shipping: Effective May 15, 2025, COSCO announced a General Rate Increase (GRI) for routes from the Far East, Middle East, and Oceania to the U.S., with rates of $1,600 for 20’ containers, $2,000 for 40’ containers, and $2,532 for 45’ containers.
Hapag-Lloyd: From May 15, 2025, Hapag-Lloyd will apply a GRI for routes from Asia to South America’s West and East Coasts, Mexico, Central America, and the Caribbean, with rates of $500 for 20’ dry containers and $1,000 for 40’ dry, high-cube, and refrigerated containers. From June 5, this extends to Puerto Rico and the U.S. Virgin Islands.
Matson: Starting May 22, 2025, Matson will increase rates for shipments from Shanghai, Ningbo, and Xiamen to the U.S., with a $1,500 rate per 40’ container.
ONE (Ocean Network Express): Effective May 21, 2025, ONE will impose a PSS of $2,000 per 40’ container.
Industry Outlook: Peak Season and Capacity Constraints
Analysts at Jefferies predict a robust recovery in spot freight rates, driven by normalized cargo volumes and the traditional peak season starting in July. Tightening capacity on trans-Pacific routes gives shipping lines leverage to push rates higher. Linerlytica forecasts that non-U.S. routes will also see rate increases as vessel capacity is redirected to meet trans-Pacific demand.
However, some experts remain cautious. Judah Levine, head of research at Freightos, suggests that while rates will rise, they may not reach last year’s highs of over $8,000 per 40-foot container due to increased carrier competition and sufficient vessel supply. Still, the immediate demand spike has led to reports of fully booked vessels, with Flexport’s Ryan Petersen noting a 35% increase in bookings from China to the U.S. on the first day of the tariff relief.
Implications for Shippers and Retailers
For shippers, the combination of rising freight rates and limited vessel capacity poses challenges. Maersk has introduced door-to-door shipping discounts to fill available capacity, but the overall trend points to higher logistics costs. Retailers, preparing for the holiday season, are prioritizing early shipments to avoid potential tariff-related disruptions. Cameron Johnson of Tidalwave Solutions emphasized that the 90-day tariff relief window averts a “Christmas catastrophe” for retailers, ensuring U.S. consumers have ample product choices.
Partner with CUC Freight for Seamless Shipping Solutions
As freight rates climb and capacity tightens, partnering with a reliable logistics provider is critical. CUC Freight, a leading global freight forwarding service, offers tailored solutions to navigate these market shifts. Whether you’re shipping from China to the U.S. or other global routes, CUC Freight provides competitive rates, real-time tracking, and expert guidance to optimize your supply chain. Visit
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The U.S.-China tariff relief has ignited a shipping frenzy, pushing trans-Pacific freight rates higher and signaling an early peak season. With major carriers like Maersk, MSC, COSCO, and others implementing surcharges and rate hikes, shippers face a dynamic and costly market. By leveraging CUC Freight’s expertise in global freight forwarding and container shipping, businesses can stay ahead of rising costs and ensure timely deliveries. Stay informed and plan strategically to navigate this evolving landscape.
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