The threatened Trump tariffs are causing a rush on imports and increasing shipping costs

Xeneta said companies are rushing imports to avoid higher tariffs, as U.S. importers and exporters brace for rising shipping container rates. The company notes that a repeat of 2018 is unlikely as early sourcing of imports is expected to play a greater role this time.

“Risk management has been a huge element for container shipping professionals in recent months,” said Peter Sand, the company’s chief analyst. pv magazine. “First there was the strike in the American ports on the east coast and the Gulf, and a month later the American presidential elections. With the uncertainty surrounding the outcome of the election quickly passing, the focus can now turn to implementing the contingency plans that have been put in place for how to manage the transition from the current tariff regime to the next.”

Sand explained that U.S. retailers have been building inventory throughout the year in response to disruptions in the Red Sea, putting importers in a position to act strategically. He noted that there is little evidence of a significant increase in activity at this stage.

“In particular, freight rates for container transport to the US from the Far East/China have increased by $150 per piece [40-foot equivalent unit] to the East Coast, while rates to the West Coast have fallen by the same amount over the past three months,” he added.

Shipping costs have increased significantly in the first half of 2024 to the Red Sea crisis.

“There is an upward trend associated with frontloading and potential port attacks on the US East Coast and Gulf ports,” Sand said.

Xeneta warned that tariffs imposed by other countries and trading blocs, including the European Union, could drive up prices.