A wave of front-loaded cargo from China to the US is overwhelming key Asian ports and sending transpacific container rates soaring.
Triggered by a temporary 90-day tariff reduction, the rush to ship before a possible policy reversal in August is stretching port capacity, equipment availability, and carrier space to breaking point.
Major ports in China are struggling under the weight of soaring volumes. Vessels now face berthing delays of up to 72 hours at Shanghai and Qingdao, while Ningbo reports wait times of up to 36 hours. Shippers diverting cargo to Ningbo to bypass Shanghai congestion are now encountering fresh delays and container shortages there as well.
Beyond China, delays are compounding across Asia. Pusan in South Korea is experiencing hold-ups of up to 72 hours, while Singapore reports vessel bunching causing up to 36 hours of delay. Congestion is also spreading across ports in Japan, Vietnam, Thailand, the Philippines and Malaysia, where yard utilisation has reached 90%.
As shippers scramble to beat the tariff window, equipment shortages are intensifying. Carriers including CMA CGM and Maersk are now selectively allocating containers in Shanghai and Ningbo based on available space and freight rates, with some lines limiting equipment release to match vessel capacity. HMM is also reportedly tightening container access at key terminals.
On the pricing front, the market is seeing a rapid escalation. Carriers have announced a wave of general rate increases (GRIs) and peak season surcharges (PSSs), many set to take effect from 1 June. Spot rates to the US West Coast are poised to jump to $6,000 per 40-foot container, while East Coast rates could climb to $7,000. GRIs will apply universally, but PSSs are being levied primarily on smaller shippers without access to negotiated contracts, further widening the gap between spot and contract pricing.
A second wave of increases is scheduled for 15 June, with carriers such as Hapag-Lloyd, MSC, and CMA CGM filing rates of up to $8,000 per container. These are formal filings, but expectations are that the market will support significant increases given the surge in demand and the limited space available.
The current pressure on transpacific capacity follows a spike in China-US bookings, with some carriers reporting a doubling in volumes. This mirrors conditions seen in mid-2024, when a combination of labour disruption and peak season demand drove rates to over $8,000 per FEU to the West Coast and more than $10,000 to the East Coast.
With port congestion worsening and carriers focused on maximising returns during the tariff reprieve, shippers face a narrowing window to move cargo at acceptable cost. Delays, space shortages, and mounting surcharges are likely to persist, or intensify, through June as trade flows realign and logistics networks strain to keep pace.
With our $1 billion buying power, we have the volume leverage and rate agreements in place to shield our clients from the worst of today’s transpacific disruption.
Secure space, stable pricing, and priority equipment access to protect your supply chain, even when the market is under the most intense pressure. Talk to us today to keep your cargo moving.
