Booking volumes to the United States dropped 20% over the past six weeks, due to the impact of recent U.S. tariff measures and cautious inventory strategies among importers. Pre-season replenishment drove an early summer peak, but as order volumes in the U.S. remain weak, many shippers are waiting to avoid excess inventory.
TRANSPACIFIC CAPACITY MANAGEMENT AND SERVICE ADJUSTMENTS
As carriers intensify capacity management measures through September to balance services, Importers should anticipate rolling risk, port coverage changes, and shifting transit patterns across the Pacific trades. Service schedules are likely to remain dynamic while carriers adjust to policy-driven disruptions and weaker order volumes.
Alliance networks are also shifting:
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ONE/HMM/YML (Premier Alliance): The PS5 service is suspended beginning Week 36, while PS4 temporarily omits Xiamen and adds Ningbo. PS6 will add Qingdao calls in Weeks 38–39.
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Ocean Alliance: COSCO and Evergreen will omit Seattle on selected sailings starting mid-September. Additional SEA service rotations have been adjusted to include Laem Chabang and Yangpu while removing Hong Kong.
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Long-term restructuring: The Premier Alliance is dividing its MS2 pendulum into two separate services, redeploying non-China-built vessels to U.S. trades. This change reduces exposure to upcoming tariffs on Chinese-built vessels set to take effect in mid-October.
The redeployment strategy reflects an effort to mitigate operational costs, with carriers projecting savings of up to $1 million per voyage by shifting Chinese-built vessels off U.S. rotations.
TRADE COMPLIANCE UPDATE: FEDERAL CIRCUIT COURT RULES ON IEEPA TARIFFS
An August 29, 2025 ruling by the U.S. Court of Appeals for the Federal Circuit upheld a previous finding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision invalidated earlier executive orders that had introduced duties under IEEPA, including broad reciprocal tariffs and trafficking-related measures.
The ruling states that tariff authority lies with Congress or statutes that explicitly delegate such authority, such as Section 232 or Section 301. For importers, this limits the scope of IEEPA and may be a catalyst that similar unilateral tariff actions may face judicial challenges. The case remains paused until mid-October to allow for potential Supreme Court review.
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