Ocean shipping rates from China to the U.S. West Coast have plunged 68% since June, signaling that this year’s peak season was both earlier and shorter than usual, The Wall Street Journal writes.
The decline comes as U.S. retailers and manufacturers approach the fall and winter shopping periods cautiously, weighed down by tariff uncertainty, shifting trade policies, and consumer spending concerns. A federal appeals court recently struck down several tariffs but kept them in place through mid-October, creating added planning challenges for importers.
Global shipping costs have dropped for 11 straight weeks, with the average rate for a 40-foot container down 40% since mid-June, according to Drewry Shipping Consultants. Short-term contract rates on the China–West Coast route fell to $1,802 on Sept. 1, the lowest since December 2023. While some routes remain inflated due to Suez Canal diversions, overall demand is soft. The National Retail Federation projects U.S. imports will fall nearly 20% year-over-year through year-end as companies curb or draw down inventories.
