Freight demand from China to the US is now falling sharply due to escalating trade tensions, according to a new report from Bank of America (BofA).
“Container bookings from China to the US fell 45% year-on-year for the week ended April 14,” BofA analysts said, citing data from Vizion.
The decline is worse than figures reported by Hapag Lloyd and K+N, which each reported a 25–30% drop in bookings.
The decline is attributed to new US tariffs on imports from China, although President Trump had previously claimed that the tariffs would be “substantially reduced.”
The Port of Los Angeles expects container arrivals to fall by 35% in the coming weeks, citing “a near-halt in shipments from China and a decline in Southeast Asia,” BofA quoted the port’s director as saying.
Ocean carriers are reportedly responding by canceling more sailings across the trans-Pacific route, cutting more than 20% of capacity, BofA said. However, freight rates have remained stable, with the Shanghai Container Freight Index down just 1% from the previous month.
For the air cargo sector, shipments from China and Hong Kong to the US fell 16% year-on-year for the week of April 14–20 — worse than the 3% decline across the Asia Pacific region, BofA said.
“Cathay Pacific expects air cargo demand between China and the US to continue to weaken from early May,” BofA added, noting that the withdrawal of the US de minimis exemption on May 2 could further dampen demand.
Meanwhile, weakening consumer sentiment in the US is also weighing on demand. The University of Michigan’s April survey showed a 4.8-point drop in consumer confidence to 52.2 — the lowest reading since mid-2022.
According to BofA, “the tariff war is now starting to affect shipments from China to the US,” with a major impact on ocean and air shipments and consumer spending patterns.
