China United Lines reenters booming transpacific trades
China United Lines Launches New Transpacific Service
In a strategic move to capitalize on the current surge in transpacific shipping, China United Lines (CUL) has announced the launch of its Trans Pacific West Coast 1 (TP1) service. Starting June 7, this new service will connect Shekou, Ningbo, Qingdao, and Long Beach, deploying up to six ships, each with a capacity of 2,400 to 2,800 twenty-foot equivalent units (teu). This development comes on the heels of a significant reduction in tariffs imposed by the U.S. on Chinese goods, which has prompted a rush in shipping activity.
Shipping Surge Amid Tariff Reductions
Earlier this month, U.S. President Donald Trump made headlines by easing the trade tensions with China, temporarily slashing tariffs by 115% for a 90-day period. This unexpected decision has led to a dramatic increase in freight rates on the transpacific route, as shippers strive to meet the impending deadline. The response from the shipping industry has been swift, with a notable rise in shipping volumes.
According to Linerlytica, a prominent shipping consultancy, the total capacity on the transpacific route is projected to increase significantly over the next four weeks. Recent data shows an average of over 560,000 teu departing from Asia to the U.S. weekly, a substantial rebound from the low of 377,000 teu recorded in week 19. This surge has prompted existing carriers to ramp up operations, adding extra loaders and reinstating previously suspended services to accommodate the growing demand.
As the market evolves rapidly, CUL’s entry into the transpacific trade lane is a clear indication of the renewed optimism in the shipping sector. With the combination of tariff reductions and increased shipping capacity, the transpacific route is set to witness a bustling period ahead.
