Trump's tariff plan to trigger huge surge in Asia-US freight rates

Posted on September 16, 2024   |  

Trump's new import tariffs are likely to cause a rise in ocean shipping costs, similar to what happened during his first term as President.

The plan includes tariffs of up to 20% on all imports, with additional tariffs of 60% to 100% on goods from China.

In 2018, similar tariffs on Chinese imports led to a 70% jump in ocean shipping rates.

Between January and November 2018, freight rates on the China-US West Coast route rose from $1,503 to $2,604 per 40ft container.

From December 2023 to July 2024, spot rates from the Far East to the U.S. East Coast increased by 303%.

Spot rates from the Far East to the U.S. West Coast rose by 389% over the same time.