Less Than 24 Hours After Tariff Cuts, Carriers Announce Rate Hikes of Up to $1,500-Transpacific Spot Rates to the U.S. West Coast Surge to $6,000 per FEU
In the wake of a surprise breakthrough in U.S.-China trade talks held in Geneva, both nations issued a joint statement announcing substantial progress. The agreement includes the cancellation of 91% of tariffs imposed by both sides, and the suspension of 24% "reciprocal tariffs." Effective May 14, for a 90-day period, China will reduce tariffs on U.S. imports from 125% to 10%, while the U.S. will cut tariffs on Chinese imports from 145% to 30%.
This unexpected and industry-defying development sent shockwaves through the global shipping and logistics markets. Within 24 hours of the announcement, major ocean carriers rushed to implement sharp rate increases ahead of a predicted surge in booking demand from exporters.
Matson Navigation has informed customers that beginning May 22, it will increase rates by $1,500 per 40-foot container (FEU) for shipments from Shanghai, Ningbo, and Xiamen to the United States.
Industry sources also report that ONE (Ocean Network Express) has notified clients of a $1,000 hike in FAK (Freight All Kinds) rates for 40-foot containers, with plans to implement a significantly higher Peak Season Surcharge (PSS) starting May 21. That surcharge could reach $2,000 per container.
Evergreen (EMC) has announced a GRI (General Rate Increase) ranging from $700 per FEU between May 15 and May 31. Following this increase, rates to base ports on the U.S. West Coast could reach $3,100 per container.
As the world's largest container shipping company, MSC (Mediterranean Shipping Company) plans to introduce a PSS of $1,600–$2,000 per FEU starting June 1. With this adjustment, spot rates to West Coast base ports such as Vancouver, Long Beach, Los Angeles, Oakland, and Seattle are expected to surge back to $6,000 per container.
HMM and COSCO have also announced upcoming increases ranging from $800 to $1,000 per FEU, effective May 15.
To put the spike into perspective: as of May 10, the Shanghai Shipping Exchange reported the average rate to the U.S. West Coast at $2,347 per FEU. An increase of $1,500 represents a 64% jump. If rates rise again to $6,000 in early June, it would mark a staggering 156% surge in just two weeks-a rapid and dramatic escalation not seen in recent years.