Container freight rates have softened ahead of China’s Golden Week holidays while the United States and China have identified goods representing US$60 billion (about R983.4 billion) in bilateral trade for possible tariff reductions.
Cargo volumes began declining around the Far East’s mid-Autumn festival holidays with carriers offering discounts for October shipments, according to shipping consultancy Linerlytica in its September 29 market update.
The Shanghai Containerised Freight Index ended eight weeks of gains although container vessel charter rates remained firm, the consultancy said.
The easing comes as Washington and Beijing advance their “30-for-30” trade framework covering approximately US$30 billion (about R491.7 billion) in goods from each country.
The two countries recommended non-sensitive products that could receive more favourable tariff treatment in future, US Trade Representative Jamieson Greer said in a September 27 statement.
These include agricultural products and medical devices exported to China as well as household goods and toys imported by the US.
The White House published both product lists, saying the countries would consider reciprocal tariff reductions in line with their domestic laws and processes. The announcement does not confirm that the proposed reductions are already in force.
Despite the recent softening, transpacific freight rates remain substantially higher than earlier in the year. Linerlytica said rates rose by more than 180% over the preceding five months, supported by recovering Chinese container exports to the US and persistent port congestion.
Globally, congestion is tying up about 3.76 million TEUs of vessel capacity, equivalent to 10.9% of the container fleet, according to the consultancy.
Separately, Linerlytica reported that Maersk will withdraw its seasonal Transpacific Xpress service from October. The service connects Cai Mep in Vietnam, Busan in South Korea and Long Beach in the US. Its final departure from Cai Mep was scheduled for September 29.
