Sure enough! As soon as the high-level China-US talks wrapped up and tariffs were slashed, trade demand was expected to surge. But at the same time, shipping companies saw an opportunity and quickly hiked their rates.

01. Shipping Companies Rush to Raise Rates!

Lots of shipping companies are sending out notices to raise their rates. Matson was the first to act. They told their customers that starting May 22, they would charge more for large containers going from Shanghai, Ningbo, and Xiamen in China to the US. Specifically, the increase is $1,500 for a 40-foot container. Here are the details:

• Starting May 22, 2025, the MAF to WC and IPI/MLB routes from Ningbo, Shanghai, and Xiamen will go up by $1,500 per 40-foot OSPF container.


• For the MAF to WC and IPI/MLB routes from Ho Chi Minh City, the rate will increase by $500 per 40-foot OSPF container, effective from May 31, 2025.


• For the MAF to WC and IPI/MLB routes from Hawaii, the rate will go up by $300 per 40-foot OSPF container, starting May 22, 2025.

 

ONE shipping company isn't far behind. They told their customers that the FAK rate for 40-foot containers on US routes will go up by $1,000. They also plan to introduce a peak season surcharge (PSS) of $2,000 per container starting May 21.

Evergreen is planning to raise its General Rate Increase (GRI) by $700 per container from May 15 to 31. After the increase, the rate for basic US West Coast ports will reach $3,100.

MSC is even more aggressive. They plan to introduce a peak season surcharge (PSS) of $1,600/$2,000/$2,000 starting June 1. After the increase, the rate for large containers to basic US West Coast ports like VAN/LGB/LAX/OAK/SEA will be back up to $6,000 per 40-foot container.

Hapag-Lloyd's rates have also soared. Their latest QQ spot rate data (as of week 22) shows:

 

• USWCBP is at $6,000 per container.


• USECBP is at $7,000 per container.

 

The rate for shipping from USNYC to Chicago is $7,850 per container (currently only the NYC to Chicago route is available).

They also noted that these rates are subject to change at the time of booking, and they will share any further adjustments.

In addition, COSCO and HMM have also announced rate increases of $800 - $1,000 starting May 15. For a while, the shipping market has been in a state of high alert, and shippers are facing huge cost pressures.

If you want to learn more, you can read the following article：

• A Major Turning Point for US-China Trade


• Global Trade Relies on Shipping Manifests


• ​Shenzhen: Global Trade’s Wholesale Goldmine​

02.What Are the Specific Impacts?

When tariffs go down but freight rates shoot up, it creates a tricky situation for businesses. Here’s what happens:

• Higher Shipping Costs: Although lower tariffs have saved businesses some costs, the skyrocketing freight rates have significantly increased transportation costs. For communication cable suppliers highly dependent on the global supply chain, this directly erodes their profit margins, especially in price sensitive markets where they may face greater profit pressure.


• Supply Chain Delays: With shipping companies raising rates and possibly cutting back on capacity, getting goods from one place to another can take longer. This can mess up delivery schedules and cause delays.


• Increased Prices for Consumers: Companies might pass on the higher shipping costs to consumers, which means people have to pay more for the products they buy.


• Strain on Small Businesses: Smaller companies might struggle more because they don’t have the same negotiating power with shipping companies as larger ones. This can put a real strain on their operations.


• Market Uncertainty: All these changes can make it hard for businesses to plan ahead. They might be unsure about future costs and delivery times, which can affect their overall strategy.

In short, while lower tariffs are good news, the sudden spike in freight rates can cause a lot of headaches for businesses and consumers alike.

03. Tight Capacity? No Worries! Freight Forwarders Can Help

Tariff cuts have boosted trade demand, and shipping companies have taken the chance to raise rates, leading to tight capacity. This series of moves seems to be a common pattern in the industry. Shipping companies are playing a game of "cutting capacity first, then raising rates, and finally limiting the release of space," which is causing a lot of headaches for shippers.

But this time, things are different! Pusou Logistics acted quickly and visited top shipping companies. SITC, one of the shipping companies, gave Pusen Logistics a lot of support. They not only extended the payment terms but also promised to keep the container space without price increases. They can even provide same-day space for dangerous goods in half-containers.

For freight forwarders and shippers who are still struggling with the lack of space and soaring rates, consider Pusen Freight. Pusen Freight has a wide range of shipping routes and offers special discounts. They also provide guaranteed space services, which can really help you say goodbye to the hassle of booking space. In today's complex and changing shipping market, Pusen Freight can safeguard your cargo transportation.

Shipping from China to the US can be a headache, but not with Presou Logistics. We’ve got your back with super-fast quotes and smooth customs clearance. We handle 20ft and 40ft containers, door-to-door, no hassle. Let’s make shipping easy-peasy. Chat with our team today!