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Soaring China-US Ocean Freight Rates by 275%, Increased Green Logistics Subsidies

 

 

 

Core Trends and Client Response Recommendations

 

 

 

1. Sustained Surge in China-US Ocean Freight Rates

 

Latest data shows a 277% weekly spike in container orders from China to the U.S. Shipping giants like Hapag-Lloyd are prioritizing space for long-term clients, causing severe backlogs for spot orders.

 

The Shanghai-Los Angeles route quoted $3,705/FEU for the May 26 sailing, doubling the rate since May 12.

 

From June 1, some carriers will raise base fares to $6,100/FEU, with a possible additional $4,000 peak-season surcharge.

 

 

Client Recommendations:

 

  • Secure June shipping space immediately, preferring secondary ports like Qingdao and Xiamen to avoid congestion in Western U.S. ports.

 

  • Consider less-than-container-load (LCL) or transshipment solutions, such as diverting 20% of cargo via Prince Rupert, Canada.

 

Sustained Surge in China-US Ocean Freight Rates

 


 

 

2. Cost Optimization Driven by Green Logistics Policies

 

China’s first-tier cities have increased the electrification rate of delivery vehicles to 75%, raised the tax credit for smart logistics equipment purchases to 35%, and extended warehouse land tax exemptions until 2027.

 

The penetration rate of new energy refrigerated trucks has reached 25%, with SF Express’ first cross-provincial hydrogen heavy truck route reducing carbon emissions by over 10,000 tons annually.

 

 

Client Recommendations:

 
  • Prioritize logistics partners with a high proportion of electrified fleets to reduce urban delivery costs.

 

  • Apply for smart warehouse tax incentives; upgrading automation equipment can save 15-20% in long-term operational costs.

 

 

Cost Optimization Driven by Green Logistics Policies

 


 

 

3. Acceleration of Cross-Border Rail and Multimodal Transport

 

The China-Europe rail service from Chengdu to Uzbekistan has achieved regular weekly operations (3 trips per week), with full delivery time compressed to 8 days.

 

Twelve new multimodal transport hubs have been added nationwide, aiming to increase rail-water Multimodal Transport’s share to 35%.

 

New energy vehicle coverage at hubs like Nansha Port has reached 55%.

 

 

Client Recommendations:

 

  • Test "rail+sea" hybrid routes for Europe/Central Asia cargo, saving 5-7 days compared to pure sea transport.

 

  • Request "one-bill" bills of lading from freight forwarders to reduce transfer procedures and documentation costs.

 

 

The China-Europe rail service

 


 

 

4. Risks from Fluctuating Global Trade Policies

 

The U.S. Treasury Secretary warned of potential restoration of April tariff levels for "insincere" countries.

 

India has restricted imports of ready-made garments and food from Bangladesh, while Thailand introduced origin monitoring for 9 new categories of high-risk products.

 

Australia and New Zealand have revised electrical equipment compliance standards, and South Korea allocated an additional 84.7 billion KRW to counter U.S. tariff impacts.

 

 

Client Recommendations:

 

  • Urgently review product compliance documents, focusing on new regulations like the EU’s REACH and Australia’s RCM.

 

  • Diversify market risks by developing alternative markets in the Middle East and Africa to reduce reliance on the U.S. and Europe.

 

 

Risks from Fluctuating Global Trade Policies

 


 

Implementation Priorities and Data Sources

 

Most Urgent Action: Book June ocean freight space (deadline: May 25).

 


Medium-Long-Term Strategy: Develop Central Asian rail routes and apply for green logistics subsidies.

 

Data Sources: China General Administration of Customs, Alphaliner Shipping Report (May 20, 2025).

 

 

Need a Customized Solution? We Offer:

 


✓ Priority booking for U.S. route shipping space

 


✓ New energy transportation cost calculation

 


✓ Multimodal transport route optimization

 


 

Contact Us for Emergency Logistics

 


Whatsapp: +86 181-2642-4455

 


Website: https://www.transworldcn.com/

 

 

Wishing You Have a Happy Trade!

 

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