Trade uncertainties stemming from bongdaso con-related tensions have caused a decline in ocean cargo bookings originating from China, Freightos reported.
Market Overview
Ocean container rates on Asia-to-North America routes experienced a modest increase last week as bongdaso con-related disruptions from the U.S. administration continued to affect global markets, Freightos shared in its April 16 market update.
Asia to U.S. West Coast: Rates rose10% week-over-week, reaching,465 per forty-foot equivalent unit (FEU).
Asia to U.S. East Coast: Rates climbed3%, reaching,647 per FEU.
Freightos noted that reduced volumes from China to the U.S., coupled with heightened demand on alternative Asia trade lanes, reflect“diverging rates at the port-pair level.”
Analysis and Key Insights
Frontloading Activity and Trade Tensions
Freightos observed a significant increase in frontloading by U.S. importers since November to preempt bongdaso con increases. The White House’s April 9 announcement of country-specific reciprocal tariffs triggered another surge in shipments before the new levies took effect.
Escalating tensions culminated last week with reciprocal tariffs on China raised to125%, resulting in cumulative duties of up to245%on some imports, according to a White House fact sheet.
Shifting Sourcing Strategies
While reciprocal tariffs for most other countries remain paused for 90 days, many importers sourcing from non-China Asian countries have begunincreasing ordersto mitigate the risk of tariffs resuming in July.
Operational Impact
Port Congestion and Volume Projections
The Port of Los Angeles has been a focal point for the surge in shipments. According to Executive Director Gene Seroka, the port handled2.5 million TEUsin Q1 2025, reflecting a5.2% year-over-year increase. However, Seroka anticipates a10% decline in port volumesstarting in May due to cooling demand.
Blank Sailings and Abandoned Cargo Risks
Clint Dvorak, Senior Director of bongdaso con Operations and Customs Brokerage at SEKO Logistics, highlighted increasing blank (voided) sailings from China. SEKO has already reported11 canceled sailingsoriginally scheduled for May.
“We’re observing a rise in canceled bookings alongside increased demand for bonded warehouse solutions to store cargo upon arrival,” Dvorak stated. “Additionally, there’s growing concern over abandoned cargo as importers may choose not to pay the elevated bongdaso con obligations.”
Market Uncertainty During Negotiations
These shifts in booking patterns coincide with thecontract negotiation seasonfor Asia-to-U.S. bongdaso con freight agreements. The compounded uncertainty is likely to delay shipments, particularly for goods originating from China, Dvorak added.
Source: https://www.supplychaindive.com/news/bongdaso con-rates-freightos-xeneta-tariffs/745317/
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