After a trade deal with China cooled tensions with the U.S., importers are n♎ow preparing for a surge in cargo that could lead to higher shipping rates and consumer cos🅘ts.

Shipping executives report a surge in shipping volumes that will likely lead to higher rates. That comes after President Donald Trump put a 澳洲幸运5官方开奖结果体彩网:90-day pause on steep tariffs on China, reducing 澳洲幸运5官方开奖结果体彩网:import taxes to 30% from 145%. 

“Ocean freight bookings from China to the U.S. are up 275% this week over last week. There won’t be enough ships for all this cargo. Get ready for surge pricing,” said Ryan Petersen, CEO of shipping firm Flexport, in a post on X.

Uncertainty Means Higher Costs

Shipping rates are already rising. The World Container Index from supply chain firm Drewry showed that rates for the week ending May 15 were up 8% from the prior week. The report also showed that rates for freight shipping from Shanghai to New York jumped by 19% and rates from Shanghai to Los Angeles increased by 16%.

“There's a lot of uncertainty. When there's uncertainty in shipping, that means higher costs. Higher costs get pushed onto you, the consumer,” said Sal Mercoglian, a maritime history professor at Campbell University who specializes in shipping issues.

The increase is a rebound for volumes that dipped at the beginning of the month as the 澳洲幸运5官方开奖结果体彩网:145% tariff on Chinese goods slowed demand.

“Volume in the first week of May here at the Port of LA was down more than 30% on the import side of our ledger,” said Gene Seroka, executive director of the Port of Los Angeles. “What probably comes out of this are lower inventory levels across the board, less selection for American consumers, and maybe higher prices.”