Drewry: Carriers underestimated US tariff hangover

In the aftermath of the threatened tariffs on Chinese goods, container shipments from Asia to West Coast North America have fallen as the market readjusts to slower volumes and prices.

At the end of 2018, eastbound spot freight rates were at a six-year peak but available PIERS data for the first three months of 2019 show that Asia to US West Coast volumes have declined approximately 3% year-on-year.

Shippers had prioritised the West Coast as the quickest way to beat the deadline and market consultant Drewry reported that it was “always likely to suffer the most from a tariff hangover”.