Container lines expect rebound after US-China tariff truce

The container shipping industry has welcomed an agreement between the United States and China to temporarily slash punishing tariffs, saying it expected to be buoyed by a resulting recovery in bookings from China to the US. Trade between the world’s two largest economies plummeted in the midst of the standoff, prompting leading container shipping companies to suspend regular routes or cancel individual voyages. Others considered switching to smaller ships.

A rebound in shipping demand could send off-contract spot rates for vessel space higher. Importers of critical goods including hospital supplies like syringes, IV apparatus or ventilators could rush in products if supplies are running low. Still, other importers may take a wait-and-watch approach to 30% tariffs that would drive up prices for shoppers. Retailers like Walmart Target and Home Depot account for about half of global container shipping volume, as per a report.

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