Major container shipping lines are doubling spot rate prices on shipments from China to the U.S. West Coast, aiming to capitalize on the 90-day pause in steep U.S. tariffs on Chinese goods.

The rate increase is fueled by a surge in bookings, as importers rush to move fall and holiday goods before the tariff window potentially closes. Carrier like Hapag-Lloyd reported a 50% rise in bookings.

This surge in demand and rate volatility underscores the urgency for importers to act quickly. With only a short window of opportunity, several compelling factors make now a strategic time to move freight.

Why Ship Now?

• Lower Tariff Window: Tariffs have dropped by 115% on China for a limited 90-day period, in July other regions could face tariff increases so significant savings opportunities could disappear quickly.
• Rising Spot Rates: Spot rates have already jumped in some lanes and are projected to rise further.
• Factory Production Rebounding: Chinese vendors are quickly ramping back up and product availability will increase in the short term.

What if I Wait?

• Capacity Crunch: Carriers are overbooked. Delays could increase by waiting too long.
• Rate Volatility: Prices are expected to spike again by mid-June, shipping later may erase tariff savings with higher freight costs.
• Tariff Uncertainty: If a new agreement isn’t reached, tariffs may rise again in August.

Why Consider Air Freight?

With ocean freight costs rising sharply and demand surging, air freight can offer strategic advantages, especially for time-sensitive goods or high-margin products.

• Urgent shipments (fall or holiday merchandise with tight delivery windows)
• High-value goods where speed offsets higher transport costs
• Partial shipments to get products on shelves while the rest ships via ocean
• Mitigating risk of ocean booking delays or congestion

Next Steps & How We Can Help

• Review open POs and identify SKUs where speed is critical
• Consider split shipments: move a portion by air while the rest goes by ocean
• Request quotes now: Ocean rates may continue to rise. For air, take advantage of rates now because as companies pivot there could be a rise too.

The current shipping environment is rapidly shifting. Acting now ensures you can lock in lower rates, secure capacity, and maintain your delivery schedules. Mallory Alexander is here to help you with flexible freight solutions, whether ocean, air, or a strategic combination of both. Reach out to your Mallory Alexander representative to secure space or request a quote.