Transpacific Trade Squeezed by Congestion and Soaring Costs

Sea freight from Asia to the United States is entering another volatile cycle, as a surge in cargo demand from China to the US overwhelms ports, stretches equipment availability, and sends rates climbing sharply.

The 90-day reduction in US tariffs on Chinese goods has prompted importers to accelerate shipments before a possible tariff reversal in August. The result is growing congestion at key export hubs.

Shanghai and Qingdao are experiencing vessel wait times of up to 72 hours, with knock-on delays at Ningbo and widespread disruption reported at regional ports across Asia, including Singapore, Pusan, Tokyo, and Ho Chi Minh City. Adverse weather has added to the delays, and yard utilisation is nearing full capacity at several terminals.

Container shortages are intensifying. Some carriers are now rationing equipment based on rate levels or contracted volume, leaving smaller shippers exposed to sudden space constraints and limited container availability. Carriers are also diverting capacity from other lanes to meet transpacific demand, tightening supply across the board.

To capitalise on the cargo spike, major shipping lines are implementing sharp increases in freight rates. Spot prices to the US West Coast are set to exceed $6,000 per FEU from 1 June, with East Coast rates reaching $7,000. Peak season surcharges (PSS) are being added — especially for shippers without volume contracts and a second round of general rate increases (GRIs) could push rates as high as $8,000 by mid-June.

With demand outpacing available space and the 90-day tariff window already ticking down, shippers face difficult choices. Delays, premium surcharges, and equipment bottlenecks are all escalating, just as supply chains begin preparing for the crucial pre-holiday period.

Stay ahead of the disruption

At Logicall, our multi-million-dollar buying power and long-term carrier partnerships give our clients access to secured capacity, contract rates, and priority equipment, even in high-pressure markets like this.

Don’t let spot rate volatility and congestion derail your supply chain plans. Contact us today to protect your shipments and control your costs.