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By Rachel More and Lisa Baertlein
BERLIN/LOS ANGELES (Reuters) -The container shipping industry on Monday welcomed an agreement between the United States and China to temporarily slash punishing tariffs, saying it expected to be buoyed by a resulting recovery in bookings from China to the U.S.
The United States will cut extra tariffs it imposed on Chinese imports in April to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125% for the next 90 days, the two sides said on Monday.
Trade between the world's two largest economies plummeted in the midst of the standoff, prompting container shipping companies like MSC and Cosco to suspend regular routes or cancel individual voyages. Others considered switching to smaller ships.
It is not yet clear if the reprieve will spark a big rebound in shipments to the United States. Some Chinese factories were preparing for a bounce.
"It's welcome news that these guys are talking and that the numbers have been pulled down from those sky-high levels," said Gene Seroka, executive director of the Port of Los Angeles - the busiest U.S. seaport and the No. 1 gateway for ocean imports from China. He was referring to the tariff rates.
"There's still much more work in front of us," Seroka said, adding that 30% tariffs on goods for the world's leading export nation remain significantly higher than before President Donald Trump took office.
A rebound in shipping demand could send off-contract spot rates for vessel space higher.
Importers of critical goods including hospital supplies like syringes, IV apparatus or ventilators could rush in products if supplies are running low, Seroka said.
Still, other importers may take a wait-and-see approach to 30% tariffs that would drive up prices for shoppers, he said.
Retailers like Walmart, Target and Home Depot account for about half of global container shipping volume.
The month of May is when U.S. retailers usually place orders for year-end holidays. Those goods for Halloween, Thanksgiving and Christmas typically land at U.S. ports between August and October.
"I don't know that many retailers are going to say, 'Hey, for our biggest time of the year, 30% is OK'," Seroka said.
Mike Abt, co-president of family-owned Abt Electronics in Chicago, said the family-owned seller of items including refrigerators, microwaves, computers and televisions is sitting tight and working down inventories squirreled away before tariffs went live.
"Everyone wants consistency and that's been the hard part of this whole thing. It's like a game of Risk, you really don't know what the right answer is," Abt said, referring to the popular strategy board game.