Shipping rates from China to the United States have experienced dramatic volatility following the temporary suspension of the China-US trade war, with container shipping prices now plummeting significantly below pre-truce levels.
According to data released by the Shanghai Shipping Exchange on July 4th, shipping rates from China to the US West Coast have crashed approximately 63 percent over the past month. The price for a 40-foot container (FEU) dropped from $5,606 during the peak shipping period on June 6th to $2,089. Similarly, shipping rates to the US East Coast fell 41 percent from $6,939 to $4,124 during the same period.
The price fluctuations stem from the Geneva Agreement between China and the US, which established a 90-day truce in their trade war beginning May 14th. This temporary ceasefire triggered a surge in Chinese exports to America, creating a shipping rush that overwhelmed available vessel capacity and drove prices sharply higher.
However, industry sources report that shipping rates began declining in the second week of June and have now fallen below pre-truce levels by early July. The primary factors behind this reversal include normalized shipping capacity and a significant drop in export volumes following the initial rush period, leaving carriers with insufficient cargo to transport.
A maritime industry professional noted that global shipping rates currently appear chaotic, a situation attributed to several factors: the massive volume of Chinese goods shipped to the US during May created high inventory levels in America, while the uncertainty surrounding the July 9th expiration of the 90-day suspension of “reciprocal tariffs” has prompted both exporters and importers to adopt a wait-and-see approach.
The situation highlights the volatility in international trade relationships and their immediate impact on global shipping markets.
Source: Central News Agency (Taiwan), July 6, 2025
https://www.cna.com.tw/news/acn/202507060248.aspx