As the U.S.-China trade war escalates, container bookings from China are projected to plummet by up to 60%, disrupting global shipping routes and threatening supply chain stability.​

U.S.-China Trade War Triggers Sharp Decline in China Cargo Bookings

The intensifying trade conflict between the United States and China is causing significant disruptions in global shipping, with container bookings from China expected to drop by as much as 60% in the coming weeks. This decline is poised to impact supply chains worldwide, as carriers adjust to the rapidly changing trade landscape.​

Recent data indicates a 6.1% decrease in container throughput at China’s major ports over the past week. Looking ahead, cargo bookings are projected to fall by 30–60% in China and by 10–20% across the rest of Asia. The upcoming Labor Day holiday in China is expected to further suppress cargo demand, potentially leading carriers to cancel additional sailings to stabilize freight rates.

The trade tensions escalated following the U.S. administration’s imposition of substantial tariffs on Chinese imports, aiming to bolster domestic manufacturing and reduce reliance on foreign supply chains. However, industry experts suggest that these measures may have unintended consequences. A survey highlighted that reshoring supply chains to the U.S. could double operational costs, prompting many companies to consider relocating to countries with lower tariffs instead. 

In response to the declining demand, shipping companies are reevaluating their operations. Notably, three transpacific services have been withdrawn this year, including the MSC Mustang and Premier Alliance PN4, which were canceled before their launch. TS Line’s AWC2 service, utilizing smaller vessels, has also been suspended.

The downturn in cargo bookings and the resulting adjustments by carriers are indicative of the broader economic ramifications of the trade war. Supply chains are experiencing increased volatility, and businesses are facing higher costs and uncertainties. The situation underscores the interconnectedness of global trade and the far-reaching effects of geopolitical tensions on commerce.​

As the trade dispute continues, stakeholders across industries will need to navigate the evolving challenges, seeking strategies to mitigate risks and adapt to the shifting economic environment.