Amid intensifying tariff tensions between major global economies, several international brands are temporarily halting ocean shipments from China as they evaluate shifting trade conditions and rising costs.
Shipping stakeholders are reporting a cautious slowdown, as companies hesitate to pay significantly increased import duties on Chinese goods. With tariffs reaching levels between 125% and 145%, the cost of continuing normal trade operations has become unsustainable for many importers.
Industry leaders highlighted that these elevated tariff rates are effectively paralyzing trade routes, particularly those originating in East Asia. In response, logistics planners and supply chain managers are revisiting their strategies, with some choosing to suspend shipments while waiting for greater policy clarity.
Port activity is already feeling the impact. One major U.S. port has reported approximately a dozen voided sailings scheduled for the month of May—mirroring disruptions seen in previous years due to labor disputes, global security issues, and climate-related bottlenecks.
To navigate this uncertainty, companies are exploring mitigation strategies such as renegotiating supplier terms, absorbing added costs, or passing increased prices on to consumers. However, early signs suggest limited success in avoiding the financial burden of the new trade environment.
Meanwhile, overall container volumes at U.S. ports remain relatively strong. One leading West Coast port processed nearly 780,000 twenty-foot equivalent units (TEUs) in March, marking a 4.7% year-over-year increase. Total first-quarter throughput exceeded 2.5 million TEUs, a 5.2% rise compared to the same period last year.
Despite a 15% year-over-year decline in loaded exports, import volumes remained elevated, driven in part by cargo frontloading ahead of tariff hikes. While upcoming shipment volumes appear steady, analysts caution that the current surge may taper off, particularly in the second half of the year. Early projections anticipate a potential double-digit decline in year-over-year throughput starting as early as May.
With shifting policies and economic uncertainty on the horizon, many companies are entering a holding pattern—waiting to see how trade dynamics unfold before resuming regular import activity.
