With a minimum 145% tariff on all goods from China, many US importers are canceling orders and pausing shipments in hopes that direct negotiations – which have not officially begun yet – between the two countries will result in de-escalation and lower tariffs soon.
In the meantime, reports on the drop in China-US ocean freight demand range from around 30% to more than 50% in the last few weeks. In response to falling volumes, carriers are blanking a significant share of China – North America...
Tariff fears – as well the already significant uncertainty and confusion surrounding the White House’s trade policy – grew this week with the 2nd April deadline set for many tariff announcements approaching.
The Trump administration indicated that it will narrow the scope of reciprocal tariffs initially proposed for all US trade partners that have tariffs or other trade barriers on US exports or businesses.
Only 15% of the long list of countries with a US trade imbalance and tariffs on US goods...
https://container-news.com/more-tariff-turmoil-though-ocean-rates-continue-to-ease-freightos/
Recent data from analyst Freightos indicates a consistent decline in rates for containers originating from Asia, reaching values below the lowest points of 2024.
This downward trend can be attributed to several factors, including the diminished demand following the Lunar New Year, restructuring within new carrier alliances and increased capacity.
Specifically, the Asia-Europe market has experienced an 11% decline in rates, down to $2,740 per forty-foot equivalent unit, which is 14% beneath their...
https://www.freightwaves.com/news/trans-pacific-container-rates-below-lowest-2024-levels-freightos
Recent developments in United States trade policy have once again thrown the global supply chain into a state of flux as President Donald Trump’s moves to impose and then partially suspend some tariffs have created significant disruption and uncertainty for businesses operating in North America.
That uncertain feeling has extended to ocean container rates, already in the throes of the traditional early-year lull, according to the Freightos Baltic Index.
The initial announcement of 25% tariffs on...
Early last week, President Trump rolled out 25% tariffs on all US imports from Mexico and Canada only to issue a one-month reprieve for automotive goods covered by the USMCA a day later and extend that suspension to all imports that fall under the USMCA by 13 March.
An estimated 50% of imports from Canada and 38% from Mexico fall under the USMCA and include automotive goods, food and agricultural products and many appliances and electronics.
But that leaves about US$1 billion worth of imports per...
President Trump – after a one month postponement – introduced 25% tariffs on all Mexican and Canadian imports to the US and added another 10% tariff increase on Chinese goods on Tuesday.
The Commerce Secretary stated later in the day that negotiations are ongoing and could result in some reduction of or exceptions to these tariffs by late Wednesday, with a one-month exemption for automakers announced by mid-day.
Goods from China, Mexico and Canada made up about 40% of total US imports by value in...
https://container-news.com/tariff-rollouts-and-prevailing-uncertainty-challenging-logistics/
More proposed US policy changes unveiled last week are once again roiling international trade in general and ocean freight in particular. These steps included President Trump signing a memorandum advising federal agencies to research and take steps to prevent Chinese investment in certain US industries, including ports and shipping, and a commerce secretary proposal that all foreign vessels pay a US port tax.
But the biggest bombshell came from the US Trade Representative’s announcement of a...
Lunar New Year (LNY) begins today (29 January), and as manufacturing and logistics have slowed down in the past week or so, ex-China ocean rates – that had climbed earlier during the pre-holiday rush – have also eased.
Asia-Europe prices started climbing earlier than usual this year as shippers on these lanes accommodate longer transit times around Africa, and this planning ahead may mean not much of a backlog will need clearing just after the holiday. For the Transpacific though, rates may...
https://container-news.com/ocean-enters-lny-slump-but-tariffs-on-the-horizon/
The January 15th expiration of the interim ILA – USMX agreement set at the conclusion of the three-day October strike is rapidly approaching.
Talks resumed but quickly collapsed in November with the sides far apart on the role of automation and semi-automation at these ports. Negotiations are scheduled to restart today though carriers are preparing for a strike, with Maersk urging shippers to pick up or return containers as soon as possible at East Coast and Gulf ports, and multiple carriers...
https://container-news.com/pre-lunar-new-year-demand-pushing-transpacific-rates-up/
Ocean container spot rates have surged in recent weeks, marking a dramatic shift from the volatile pricing environment that characterized much of 2024. After a year of fluctuating rates and uncertainty, shippers are now grappling with rapidly rising costs, particularly on the crucial eastbound trans-Pacific trade lane.
The Drewry World Container Index posted on Thursday showed a 3% week-over-week increase to $3,905 per forty-foot equivalent unit, driven primarily by rate hikes on trans-Pacific...
https://www.freightwaves.com/news/why-ocean-container-spot-rates-are-spiking-now