More shipper pain on the way as carriers levy new peak season surcharges
Ocean carriers have continued their flurry of surcharge and rate increase announcements, which “continue to ...
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By Alison Koo
Chinese containerised exports to the US have outperformed those of other Asian origins after tariffs under the International Emergency Economic Powers Act (IEEPA) were lifted, enabling more goods, especially those related to solar power and the AI boom, to be shipped, boosting transpacific rates.
US customs data showed that in May, Chinese exports to the US were up 35% year-on-year, the highest since March 2021. This strong performance is part of a broader export boom, with China’s overall exports rising 19% in May.
In February, the US Supreme Court ruled that the US president did not have the authority to impose tariffs under the IEEPA regulations, thus invalidating tariffs that had been placed on imports from China and other countries.
On the very same day, the Trump administration invoked Section 122 of the Trade Act of 1974 to impose a new global 10% tariff on nearly all US imports, with plans to increase it to 15%. This reset the playing field for the US’ trade partners, with China’s average tariff rate dropping from 32% to 24%.
Linerlytica today said that the surge in China’s exports to the US is heavily linked to global demand for high-tech goods, particularly in the AI and solar power sectors. The disruption in crude oil and LNG shipments arising from the Strait of Hormuz closure is persuading households to turn to renewable energy.
In terms of value, China’s total exports of integrated circuits soared 110% year-on-year in May, in part driven by unit price surges. Exports of high-tech goods surged 50% in value in May from a year ago.
On Friday, the Shanghai Containerised Freight Index showed Shanghai-US West Coast rates gained 12% from 5 June, to $5,101 per 40ft, while Shanghai-US East Coast went up by 10% to $6,321 per 40ft.
However, Linerlytica added that that tight slot availability is also helping to push up freight, especially to the US west coast.
“Transpacific freight rates to the US west coast have surged past $6,000 per 40ft from $1,800 per 40ft in February, with the higher rates set to last to July backed by the increased cargo demand,” Linerlytica said.
The boost provided by the Section 122 tariffs set to expire on 24 July is likely to be extended with additional Section 301 tariffs on Structural Excess Capacity currently delayed.
To create a more permanent tariff regime, the US Trade Representative (USTR) launched a new Section 301 investigation in March 2026, targeting 16 economies, including China and several Asian countries, for allegedly over-manufacturing goods.
However, the imposition of Section 301 tariffs has been delayed to June 2027 to give US manufacturers time to reduce their dependence on Chinese legacy chips without causing immediate supply chain shocks.
Check out this week’s News in Brief podcast, featuring Global Shipper Forum’s James Hookham.
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