New data from Descartes Systems Group, the Canadian shipping intelligence firm, reveals a dramatic decline in U.S. container imports that could signal a major shift in global trade patterns. The latest Global Shipping Report shows American ports handled just 2,177,453 twenty-foot equivalent units (TEUs) in May 2025 – a 9.7% monthly drop and 7.2% year-over-year decrease.
Trade Policy Shockwaves
Jackson Wood, Descartes' shipping analyst, attributes the unprecedented decline to recent tariff adjustments between the U.S. and China. "The 90-day tariff agreement provided temporary relief, but businesses are fundamentally restructuring their supply chains," Wood explains. "Changes to the de minimis rule for low-value Chinese imports have particularly accelerated this shift."
May traditionally marks the beginning of peak shipping season, making this year's contraction especially noteworthy. The last comparable decline occurred during the pandemic-disrupted year of 2020. However, imports remain 4.3% above pre-pandemic May 2019 levels, suggesting underlying demand persists despite policy headwinds.
China's Export Collapse
The report reveals catastrophic declines in Chinese exports to the U.S.:
- 20.8% monthly drop (804,122 TEUs)
- 28.5% year-over-year decrease
- 34.5% total export volume decline – the steepest since early 2020
China's share of U.S. container imports has plummeted to 29.3%, its lowest in over two years. West Coast ports bore the brunt, with Long Beach (-31.6%) and Los Angeles (-29.9%) experiencing the most severe declines.
Port Performance Divergence
While most major ports suffered declines, some Eastern gateways bucked the trend:
- Top 10 ports collectively down 10.7% (217,112 TEUs)
- Charleston (+6.0%) and Baltimore (+2.6%) posted gains
- East/Gulf Coast ports now command 44.5% market share (+3.1%), while West Coast ports hold 38.1% (-4.4%)
Global Supply Chain Restructuring
The data suggests accelerating diversification away from China:
- India (+5.7%), South Korea (+4.9%), and Vietnam (+2.3%) saw imports grow
- Italy (-23.1%), Hong Kong (-14.4%), and Thailand (-11.8%) experienced significant drops
Analysts identify three primary drivers behind these shifts:
- Escalating trade tensions and tariff pressures
- Corporate supply chain diversification strategies
- Changing U.S. demand patterns favoring non-Chinese suppliers
Economic Implications
The import contraction carries significant consequences:
- Retail: Potential inventory shortages and price increases
- Manufacturing: Production delays and rising input costs
- Logistics: Reduced freight volumes threatening industry profitability
Global repercussions may be equally severe, particularly for trade-dependent economies like Mexico and Canada, while emerging markets face heightened economic vulnerability.
Navigating the New Trade Landscape
Experts recommend businesses:
- Accelerate supply chain diversification
- Invest in digital transformation for greater visibility
- Develop comprehensive risk mitigation strategies
While the current contraction may reflect temporary policy impacts, structural changes in global trade patterns appear increasingly likely as geopolitical tensions persist and regional trade blocs gain prominence.