After the US and China cut tariffs each other, the business volume of the shipping giants soared. In the seven days to May 14, the average order volume for containers shipped from China to the United States was 21,530 TEUs (20-foot containers, TEUs), compared to 5,709 TEUs in the seven days to May 5, an increase of 277%.

After China and the United States suspended "reciprocal tariffs" and countermeasures, orders began to flow back.

Bookings for China-US routes have increased significantly

Let's start with some of the latest data:

Hapag-Lloyd, the German container shipping company, said it saw a 50% month-on-month increase in bookings for its U.S.-China route in the first three days of the week.

Rolf, CEO of Hapag-Lloyd Habben Jansen also mentioned: "I expect a surge in transaction volume between China and the US, which is something that we have seen in the last few days. ”

What does this mean? To put it simply, trade activity between China and the United States is heating up rapidly, and freight demand has increased significantly.

Let's take a look at the dynamics of another freight company, Flexport:

Ryan Peterson, founder and CEO of Flexport In a social media post, Petersen said, "We have seen a 35% increase in ocean freight bookings from China to the U.S. on the first day since the trade deal was reached. A lot of pressure is looming, and ships (cabins) will soon be sold out. ”

This news further confirms the upward trend of the market. Not only has bookings increased, but it also portends a possible supply crunch in the future – ships may soon run out of space!

Logistics company ITS Paul Brashear, Vice President of Global Supply Chain at Logistics Brashier also shared his observation: "My client has thousands of containers pre-loaded in China and ready to ship in."

He also expects a further surge in container traffic over the next four to six weeks. What does this mean? Companies are already actively preparing and packing boxes in advance to cope with the upcoming peak in demand. This also reflects the market's optimistic expectations for the coming months.

Container shipping bookings soared

According to Vizion, a container tracking data software provider, container shipping bookings from China to the U.S. have soared by nearly 300% after a trade "truce" between China and the United States!

Specifically: Average bookings for container shipments from China to the U.S. surged 277% to 21,530 20-foot TEUs in the seven days to Wednesday; The seven-day average bookings on Monday (May 5) were just 5,709 TEUs.

What does this mean? The "truce" of trade has caused many companies that were originally on the sidelines to take active action and book a large number of cargo transportation services.

To recap the previous situation:

On April 2, Trump announced plans to impose exorbitant tariffs on Chinese-made goods, causing container bookings for U.S. importers to plummet. However, bookings from U.S. importers surged again after the U.S.-China tariff deal on Monday. This shows that the market is very sensitive to changes in the trading environment. Once the uncertainty is reduced, businesses will quickly resume normal business activities.

According to the April 2 U.S.-China Joint Statement:

In the next 90 days, the United States will reduce tariffs on Chinese imports from 145% to 30%; At the same time, China reduced tariffs on U.S. imports from 125% to 10%.

This series of measures has temporarily eased trade tensions between the two sides, providing companies with more confidence and room to operate.

Vizion's Vice President of Strategic Business Development, Ben Trecy "Now that there's this temporary truce, we're definitely starting to see a pick-up in bookings," Tracy said. What he meant was that as the trade environment improved, orders and transportation demand from businesses rebounded rapidly. This also reflects the market's increased confidence in the coming months.

|U.S. Customers' "Order Urging Tide"

Just two hours after the release of the joint statement of the Sino-US Geneva economic and trade talks, the marketing personnel of a foreign trade enterprise in Shenzhen that exported audio products received phone calls and emails from American customers one after another. The two sides quickly communicated the shipment plan, with the aim of dispatching the goods that had previously been put on hold due to tariff issues before the peak shipping period. The exact words of American customers are: "The sooner the better".

In the half day of May 13, the company received 6 customer reminder calls or emails. Their U.S. terminal is very excited, because many products in the U.S. market are already out of stock.

With the adjustment of the tariff policy between China and the United States, at 12 noon on May 14, many cross-border e-commerce companies lowered the price of goods for the first time, and a large number of orders poured in.

U.S. Republican Senator Rand Paul mentioned that almost all the companies he spoke with had no enthusiasm for tariff policy. Today, the rapid release of a large number of orders by enterprises strongly proves that maintaining the healthy, stable and sustainable development of China-US economic and trade relations is in the fundamental interests of the two countries and the two peoples.

Jingtai summary

Jingtai briefly summarizes the key points of this information for you:

Significant increase in bookings: Bookings for container shipments from China to the U.S. soared nearly 300% following a trade truce between China and the United States, showing the market's quick response.

High trade environment: bookings have plummeted in anticipation of high tariffs; And now, with the tariff cut, bookings are picking up quickly.

Positive outlook: The improved trade environment in the near term has boosted business confidence, and transportation demand is expected to remain high in the coming weeks.

For investors, this means several key points:

Keep an eye on the performance of the freight industry: As bookings surge, there will be more opportunities for trucking companies.

Prepare for supply chain management ahead of time: Businesses need to prepare ahead of time to ensure that they have enough transportation capacity to meet demand.

Seize market opportunities: For those who rely on U.S.-China trade, now is the time to consider how to maximize this wave of growth.