Container services are being reinstated to the Trans-Pacific trade next month in response to the high demand for imports from China. Currently, capacity remains constrained as many carriers had reassigned ships to other routes during the earlier downturn.

The temporary tariff truce between the U.S. and China expires on August 14, and peak season cargo must be shipped no later than mid-July to arrive in the U.S. before the cut-off. As a result, shippers are hard-pressed to move their cargo before the deadline, which is partly driving the surge. One logistics provider said that container capacity is already tight through the first week of July. Many carriers have overbooked, and they expect that cargo could likely be rolled to later sailings due to space limitations.

Meanwhile, ocean carriers are working on restoring their services. Zim is restarting its express service from China to Los Angeles. MSC is returning with weekly sailings to Long Beach starting June 9, and the Premier Alliance is bringing back its PS5 route, with the first ship leaving Qingdao on June 6.

Returning to full service takes time and there have been warnings that it could take more than a month to replenish capacity on the route.

Source: Journal of Commerce