Explosive US orders spark high demand for freight container space in Shanghai

A surge in US orders has led to a high demand for freight container space in Shanghai, following a 90-day tariff reduction agreement between the US and China on May 12.

Notably, US buyers are proactively increasing inventory reserves, with many foreign trade companies securing new orders for the second half of the year in advance.

Qian Long, head of US route operations at Shanghai-based leading freight forwarder Hailian (China) International Logistics, said that in late April, cargo volume on US routes plummeted amid tariff concerns, prompting shipping firms to adjust capacity by canceling numerous sailings and reallocating vessels to other routes.

Now, as cargo demand rebounds, the company is scrambling to redeploy capacity and boost available space, but some vessels are still returning from other routes, exacerbating the short-term imbalance between supply and demand, Qian noted.

Yang Yanbin, deputy general manager of the Production and Operations Department at Shanghai International Port Group (SIPG), confirmed that all previously suspended US route services have now resumed, with weekly sailings from Shanghai Port returning to the normal level of 42 departures.

Yang noted that the temporary capacity adjustments initially disrupted sailing schedules, causing concentrated operations at the docks. "We've implemented contingency plans to ensure prompt handling and departure of vessels upon arrival, and will immediately coordinate any extra loader ships," he added.

Industry insiders expect shipping capacity from Asia to the US will fully recover to 100percent, potentially even exceeding normal levels, by early June.

Some foreign trade companies reported continuous communication with their US clients, stating that orders were never actually canceled. They believe this stems from American buyers' anticipation of potential tariff reductions, but more importantly, from their enduring reliance on Chinese-made goods.

Particularly in high-tech and pharmaceutical sectors, some firms said that despite facing tariff barriers, their US clients are willing to "pay premium prices" due to the technological and product advantages.

Ding Linfeng, former general manager at a Shanghai-based sunshade equipment company, revealed that even during the most challenging period in late April, US clients insisted on shipments.

"Our company owns patented products that can't be easily substituted overseas in the short term, so our shipping is never disrupted," Ding stated. He emphasized that investing in brand-building and enhancing core product value constitutes the fundamental confidence for companies expanding globally.

Alibaba International Station, a cross-border e-commerce platform headquartered in Shanghai, observed that many US buyers are looking to stock up as much as possible within 90 days. Some American buyers have even started preparations for the upcoming Christmas shopping period.

To address this demand, Alibaba International Station is preparing to launch a shopping festival targeting the US market, helping Chinese exporters sell inventory originally planned for the next three months.