With both China and the U.S. implementing mutual tariff reductions in the trade sector, the trade atmosphere has quickly warmed. Businesses in both countries are experiencing a brief “foreign trade window period,” as U.S.-China trade gains new vitality and encounters new challenges under the adjusted tariffs.

Trade Orders Surge, Putting Pressure on Shipping and Warehousing

Since the tariff reductions took effect, American companies have seized the opportunity to place large orders for Chinese goods, sparking a wave of cross-border shipping activity. Wang Mingming, Executive President of the U.S.-China E-Commerce Trade Association, noted that backlogged orders from traditional U.S. retailers have resumed shipping, and the surge in bookings has led to price increases in U.S.-bound ocean freight. Chinese-American businessman Zhao Bingrong also stated that projects previously stalled due to tariffs have restarted, with many import-export traders resuming business operations.

Luo Hao, President of the U.S. E-Commerce Logistics Federation, revealed that many U.S. companies have recently ramped up procurement of medical products, health supplement ingredients, and other materials from China, typically stockpiling for six months or more. This has pushed warehouse utilization to near capacity, triggering a “warehouse scramble” among American logistics providers.

Busy Yet Orderly Ports, Capacity Adjustments Meet Rising Demand

The tariff cut has swiftly impacted sea freight, releasing a flood of previously suspended demand. Yang Jiangqi, Manager at Ningbo Meidong Container Terminal Co., said that ports are bustling, indicating market resilience. According to data from container tracking software provider Vizion, bookings for containers from China to the U.S. soared nearly 300% in the week ending May 13 compared to the previous week.

The U.S. route accounts for about 40% of total volume at Ningbo-Zhoushan Port. Despite fluctuations in April, the port handled 998,000 TEUs for the month, up 5.6% year-on-year. Throughput is expected to return to a daily average of 35,000 TEUs in the coming weeks.

Freight Rates Spike as Companies Rush Shipments Ahead of Peak Season

As demand for U.S.-bound cargo grows, shipping companies have announced price hikes. Carriers such as Matson, ONE, and Evergreen have raised rates in mid to late May. Rates for the U.S. West Coast may hit $6,000 per TEU, while East Coast rates could reach $7,000—double those earlier this year. Xu Kai, CIO of the Shanghai International Shipping Institute, attributed the spike to earlier reallocations of capacity and containers to other routes, resulting in a current shortage on U.S. lines.

For foreign trade companies, rushing shipments has become the top priority, especially with the Q3 peak season approaching. Xu expects this trend to continue through late August, with freight rates climbing quickly until the end of June before leveling off.

Businesses Respond Positively and Stay Optimistic

Faced with opportunities from tariff reductions, businesses in both countries are responding proactively. Ding Yandong, General Manager of Ningbo Rmax Window & Door Accessories Co., said that the recent U.S.-China Geneva trade talks have clearly released much of the pent-up demand, evident in the tight shipping space now felt by many Ningbo exporters.

Zhang Chunsheng, Secretary-General of the Hainan Cross-Border E-Commerce Association, noted that Hainan is one of China’s largest tilapia production areas, accounting for nearly one-third of national exports to the U.S. With the tariff cuts, exports are recovering, and they aim to ship as much as possible within the 90-day window.

Despite remaining uncertainties, businesses are generally optimistic about the future of U.S.-China trade and are actively seeking solutions to navigate the challenges.