Concerns Over Port Congestion as US-China Tariff Truce Fuels Demand

US Firms Race to Beat August Deadline, Sparking Fears of Pandemic-Era Supply Chain Snags

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LOS ANGELES/HONG KONG - Container ship bookings for China to US cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs on May 12, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear.

US importers of sports shoes and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the Covid-19 pandemic.

The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the US, has shipowners scrambling to coordinate berths and adjust vessel schedules.

"The demand is so high that we can serve only customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd told Reuters.

"We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on May 14 soared 277 per cent to 21,530 twenty-foot equivalent units (TEUS) from the 5,709 TEUS average for the week ended May 5.

Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to US stores, including Walmart.