Tariff Relief Spurs Early Peak Season on Transpacific Trade: Carriers Announce GRIs

Container shipping lines are bracing for an early peak season on the transpacific eastbound trade, following the landmark US-China agreement to reduce reciprocal tariffs by 115% for 90 days. According to Linerlytica, this has prompted several carriers to announce General Rate Increases (GRIs), effective mid-May and again in early June.

Traditionally, the peak season spans July to September, as US and European retailers replenish inventory ahead of the holiday season. However, this year, the temporary tariff cuts are expected to accelerate demand. US importers are front-loading shipments to capitalise on the grace period and preempt any potential tariff reinstatement post-August.

Linerlytica stated that the 115% cut in US tariffs on imports from China was larger than expected amid signs of severe strain on US import volumes that would have hit store shelves in the coming weeks. This is now set to reverse, with an import surge expected over the next three months that could exceed the Covid-era peaks.
Under US FMC rules, price changes require a 30-day notice, but several GRIs are already in place for May 15, with another wave due on June 1.