Tariff War Spurs Surge in China-US Shipping Costs, Container Shortages Cripple Exporters

The ongoing US-China trade tensions have triggered a freight crisis, with shipping costs surging and container availability plummeting as businesses rush to beat tariff deadlines. Following the May 12 US-China tariff relief agreement, which temporarily suspended 24% of punitive tariffs for 90 days, American importers are scrambling to clear backlogged orders including food protection boots , overwhelming transpacific logistics networks.

 

Supply Chain Gridlock

The crisis stems from a "perfect storm" of factors. Earlier US tariff hikes in April forced carriers to reallocate 20-30% of transpacific capacity to European routes, leaving minimal buffer for the sudden demand surge. Port congestion compounds the issue: Los Angeles/Long Beach now has 42 ships waiting to berth, while Shanghai’s backlog has doubled since late April. Empty containers are trapped in US ports due to labor shortages and rail delays, exacerbating the deficit.

Desperate Measures and Industry Fallout

Exporters face severe disruptions, with frequent "blank sailings" and container cancellations. Forwarders report widespread "container dumping," where carriers prioritize higher-paying cargo, stranding booked shipments. DHL and CH Robinson warn of a premature peak season, predicting June arrivals will overwhelm US ports and delay Christmas inventory.

For Chinese manufacturers, the cost squeeze is brutal. A 40-foot container from Shanghai to Los Angeles now costs $3,705, eroding profit margins for low-margin goods like electronics, textiles and oil & gas field safety boots.Small businesses, already reeling from tariffs, risk bankruptcy if they can’t secure shipping slots.

Uncertain Future

Analysts at Drewry caution that freight rates could climb further as capacity recovery lags demand. While carriers are redeploying ships from Europe, it will take 1-2 weeks to restore service levels. Meanwhile, US retailers are stockpiling goods include steel toe leather shoes  to avoid future tariff hikes, creating a vicious cycle of congestion and cost inflation.

The tariff truce offers a fleeting reprieve, but the structural flaws in global logistics—exposed by years of trade wars and pandemic disruptions—will require systemic reforms to resolve. For now, exporters must navigate a landscape where a single container’s cost rivals the value of its cargo, testing the resilience of supply chains worldwide.