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Transpacific rates are set to fall – even as China and the US yesterday agreed to mutually cut tariffs on $30bn worth of goods, many of which move in containers.
The “30-for-30” deal will see tariffs on more than 90% of listed products drop to standard, most-favoured-nation rates, covers a combined 1,696 product lines.
Both sides must complete domestic legal procedures before the cuts take effect simultaneously.
The Chinese list includes 1,619 items, dominated by agricultural commodities including corn, wheat, meat, and dairy, alongside seafood, wood products, cosmetics, medical devices, and coal. Beijing has also committed to importing at least 10m tonnes of US coal annually in 2027 and 2028.
The US list is narrower, at 77 categories, but covers containerised goods such as toys, small kitchen appliances, tableware, blankets, bed linen, fireworks, holiday decoration and children’s car seats. Notably, soybeans, the US’s largest export to China, China’s rare earth minerals, and AI-linked products are excluded from the reduced tariffs.
Meanwhile, transpacific rates have ended a five-month upward streak.
On Friday, the Shanghai Containerised Freight Index showed rates from Shanghai to US west and east coast ports dipped 1% from 18 September, to $7,463 and $10,497 per 40ft respectively.
Consultancy Linerlytica noted: “China’s exports of small appliances, tableware, bed linens, toys, fireworks, and holiday ornaments would receive a minor boost, although these [tariff] cuts will come too late for the transpacific peak season, which is coming to an end as the China’s Golden Week holidays start on 1 October.”
In response, Maersk Line will withdraw its Transpacific Express extra loader Asia-USWC service next month, removing weekly capacity of 4,000 teu.
Meanwhile, analysts suggested the trade truce, extended into next year, could only have a moderate impact, as the tariffs only cover 30% of US exports to China, which totalled about $68bn in the first seven months of the year, against some $270bn in imports from China.