Shipping rates rise as retailers book early orders ahead of possible U.S. tariffs

Retailers and importers are booking shipments earlier than usual to get goods in before possible new U.S. tariffs scheduled near the end of July. The rush has driven maritime shipping rates to their highest levels since April 2022. According to the Platts Container Index, global container rates rose about 80 percent in the 30 days ended June 24.

The average cost to move a 40-foot container from East Asia to North America's west coast reached $6,200, up 120 percent over six weeks.

Causes of the rate increase Judah Levine, head of research at shipping platform Freightos, said the early peak-season demand stems mainly from tariff concerns and higher fuel costs tied to the closure of the Strait of Hormuz. Large shippers face quarterly fuel adjustments that will pass those higher costs to customers starting this summer.

John Corey, president of the Freight Management Association of Canada, cited uncertainty over potential U.S. tariffs of at least 10 percent on countries under investigation for forced-labor practices. The recent July 1 renewal deadline for the Canada-United States-Mexico Agreement added to the unease, even though most Canadian exports remain exempt.

Effects on consumers and businesses Lisa McEwan, co-owner of customs brokerage Hemisphere Freight, said clients are ordering clothing, holiday decorations, furniture, and electronics ahead of schedule. She stated that average household consumers will ultimately pay the higher costs at checkout.

The White House said last month that Canada is among 59 countries plus the European Union facing possible additional tariffs over forced-labor concerns. Most merchandise shipped from Canada to the U.S. complies with existing trade rules and remains exempt.