U.S.-CHINA TRADE: TRANSPACIFIC CAPACITY TIGHTENS AS DEMAND SURGES
Transpacific lanes are experiencing capacity shortages as U.S. importers move quickly to capitalize on the 90-day tariff suspension. Bookings jumped more than 50% week-over-week, with some ports reporting increases above 100%. Many carriers are now fully booked through the end of May, resulting in limited space across most U.S.-bound services. Analysts estimate that 180,000 to 540,000 TEUs of export-ready cargo are staged for shipment across China, creating a backlog that could take weeks to clear.
SHIPPERS SHOULD PLAN FOR EARLY PEAK SEASON CONDITIONS
With demand rising and capacity constrained, shippers should prepare for peak season dynamics earlier than usual—continuing through June and into July. Equipment availability, vessel space, and shifting trade policy requirements all factor into booking timelines and sourcing strategies.
U.S. importers are advised to:
- Plan bookings 4–6 weeks in advance
- Monitor carrier updates for service restorations and extra loader deployments
- Engage logistics providers early to secure space and container equipment
TRADE COMPLIANCE ROUNDUP: POLICY UPDATES FOR U.S. IMPORTERS
Recent changes to U.S. trade policy and Customs guidance are influencing how importers manage duty exposure and documentation requirements including:
- Section 232 Relief for USMCA Vehicle Imports
The Department of Commerce is now accepting applications for relief from Section 232 auto tariffs on eligible USMCA-origin vehicles. The exemption applies to qualifying non-U.S. content and requires certified documentation. Retroactive claims may be submitted for vehicles imported on or after April 3, 2025.
- CBP Clarifies Feeder Vessel Eligibility for In-Transit Exemptions
CBP has clarified that in-transit tariff exemptions for reciprocal tariffs apply only to shipments that remain aboard the original vessel without unloading or transfer. Cargo transferred to a second vessel after cutoff does not qualify. Supporting documentation must demonstrate uninterrupted routing.
- Refunds Now Available for Section 232 and IEEPA Tariff Stacking Overpayments
As of May 16, CBP is processing refunds for entries impacted by overlapping tariffs imposed under Section 232 and IEEPA, as directed by Executive Order 14289. Refunds apply to eligible entries made on or after March 4, 2025. Importers must submit claims as refunds are not issued automatically.
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