Friday, September 19, 2025

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Shipping Collapse Accelerates as Tariffs Trigger COVID-Level Disruption

The US shipping industry is experiencing a sharp and sudden contraction, with container bookings plummeting, port activity slowing, and freight volumes approaching pandemic-era lows—signaling an economic shockwave fueled by the new administration’s sweeping trade embargo.

Observers notice that bookings for container ships “almost immediately collapsed” after the Trump administration imposed aggressive new tariffs.

At the Port of Los Angeles—one of the nation’s primary trade arteries—activity is down significantly. Recent images show freight traffic decelerating to levels typically seen during holiday lulls. Some are even noticing that the level of deceleration is borderline near the halt experienced during the pandemic days.

Retailers are also already sounding the alarm, indicating earlier this week that supply shortages may happen in just a matter of weeks. The Beige Book, a key pulse-check from the Federal Reserve, has shown a surge in tariff-related mentions, underscoring that this is no isolated supply chain hiccup—it’s systemic.

The underlying issue lies in the sheer speed and scale of the tariff rollout. Unlike past policy changes that trickled into economic indicators, this one landed with immediate consequences, creating “a supply shock on par with what was seen during COVID.”

With shelves expected to empty and economic ripple effects accelerating, the shipping crisis may soon become visible to every American household.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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