• Supply chain disruptions intensify as 80 blank sailings from China signal major logistics fallout, with Vietnam emerging as an alternative sourcing hub amid escalating tariff battle. 

Key Points Summary

  • Container Shipping Disruption: 80 blank sailings recorded with potential loss of 800,000 TEUs
  • Supply Chain Impact: Major effects on ports, trucking, and warehousing across North America
  • Trade Diversion: Vietnam shipping rates surge 43% as importers seek tariff-free alternatives

Unprecedented Wave of Container Shipping Cancellations

A wave of cancelled container shipments brought on by the escalating China-US trade war poses a serious challenge to the global supply chain. The freight company HLS Group has documented 80 blank sailings from China. Since reaching peak on March 19, daily ocean container bookings from China to the US have decreased by 31%, with declines of more than 50% observed in categories such as electronics, furniture, and clothing.

Ocean Carriers Deploy Multiple Strategies as Trade War Disrupts Shipping Patterns

Ocean carriers are using several tactics, including slow steaming, deploying smaller vessels, modifying vessel strings, and suspending routes. US importers temporarily stop incoming shipments to reevaluate their options under the new tariff regime. The WTO cautions that since Trump’s tariff plan, the outlook for international trade has “deteriorated sharply.”

Supply Chain Disruption Creates Winners and Losers

Port operations, fees, truck and rail transportation, and warehousing storage are all impacted by the projected 640,000 – 800,000 TEU drop. Vietnam has benefited greatly in the meantime, as freight rates to the US have increased by 43% since March 30. According to Harvard research, 16% of Vietnam’s manufacturing growth is due to rerouting Chinese goods to avoid tariffs, while 84% is value-added production. The US-China tariffs are expected to reduce global GDP by roughly 0.3%, according to IMF projections.

Supply Chain Resilience Strategies

Experts recommend that businesses: 
  • Conduct comprehensive supply chain mapping to identify vulnerabilities
  • Diversify sourcing across multiple geographies
  • Implement advanced demand forecasting systems
  • Explore nearshoring options
  • Develop strategic inventory buffers

Supply Chain Sector Braces for Long-Term Trade Pattern Shifts

Supply chain experts must be ready for extended uncertainty as the trade war changes international trade. Fundamental changes in trade patterns seem likely to continue even as the Trump administration examines changes to proposed fee structures for ships with ties to China that visit US ports.

Sources

  1. CNBC. (April 16, 2025). “Trade war fallout: China freight ship decline begins, demand
    plummets.” Trade war fallout: China freight ship decline begins, demand plummets 
  2. International Monetary Fund. (2019). “The Impact of US-China Trade Tensions.”
    The Impact of US-China Trade Tensions
  3. Bloomberg. (April 17, 2025). “Trade War Latest: Vietnam and Shipping Rates.”
    Trade War Latest: Vietnam and Shipping Rates – Bloomberg