Major container shipping companies are significantly reducing their services between China and the United States in response to the tariffs imposed by President Trump. At least six weekly routes will be suspended, impacting the capacity to transport 25,682 40-foot containers filled with various goods such as toys, footwear, and automotive parts. This reduction equates to over 1.3 million containers per year, according to maritime consultants.
The service cuts come as shipping firms adapt to the downturn in trade caused by Trump’s tariffs, which have affected the global shipping industry—a sector responsible for 80% of world commerce. Experts like Simon Sundboell, CEO of the maritime data provider eeSea, describe these capacity reductions as clear evidence of declining economic activity rather than mere predictions.
The route suspensions impact several major shipping alliances, including MSC, Zim, and the Ocean Alliance, which features companies like COSCO and Evergreen. While four of the cuts target West Coast ports, one focuses on the East Coast and another on the Gulf Coast. Notably, Maersk and Hapag-Lloyd have not yet suspended services despite seeing a significant drop in bookings.
Discussions between U.S. and Chinese representatives are set to take place in Switzerland after a prolonged trade stalemate, highlighting the ongoing uncertainty in international trade relations. Shipping companies often implement service suspensions and individual voyage cancellations, known as “blank sailings,” to safeguard profits by aligning supply with demand. This practice became more prevalent post-COVID-19 as global trade dynamics shifted, leading to record profits for many shipping companies.
American retailers, including giants like Amazon and Walmart, have responded to the steep tariffs by halting or reducing factory orders, as the increased duties have raised the cost of goods imported from China. Blank sailings on the critical Transpacific route saw a sharp increase, climbing from 9% to 24% between late March and early May. Maritime consultancy Drewry reported that capacity on Asia to North America routes dropped by 20% in April and 12% in May. The East Coast experienced an even more significant decline, with reductions of 22% in April and 18% in May.
MSC has led in service cancellations, eliminating 30% of its scheduled voyages, while other alliances like the Premier Alliance (comprised of Ocean Network Express and others) saw a 20% blank sailing rate in May. Analysts predict that the full impact of the tariffs will not be felt until July, potentially resulting in a 25% decrease in U.S. container import volumes compared to the previous year.
Industry experts warn that either further capacity reductions will be necessary, or a sharp drop in spot rates is imminent. The evolving trade landscape continues to frustrate stakeholders seeking clarity on the future of global commerce amid ongoing tariff challenges.
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