China-US Truce Prompts Price Jump in Pacific Shipping Frenzy

A China-US deal to slash trade tariffs is set to push freight rates higher, as companies rush to use a 90-day grace period to ferry goods across the Pacific Ocean.

The rapid escalation of levies in recent weeks, as the trade war took hold, had prompted a steep slump in shipments, with Chinese exports to the US down 21% last month and imports falling almost 14%. Giant A.P. Moller-Maersk A/S last week put the April drop in China-to-US volumes at 30 to 40%. That looks to have continued into May, with the number of air cargo flights sliding in the week through May 11 — before Monday’s deal was announced.