Global Shipping Navigates Trump Tariffs Uncertainty

AFP/APP

Paris: Shifting trade announcements have led to unprecedented volatility in the global shipping industry in recent weeks, with industry players having to constantly adapt to new US tariffs.

Cargo ships put to sea half empty, fluctuating freight rates and possible shipping route changes are some of the recent adjustments industry specialists have noted.

The global economy has been riding a rollercoaster since US President Donald Trump returned to the White House in January and kicked off a tariff offensive.

Trump’s recent walk-back, announcing a 90-day pause on some previously announced levies — with the exception of those targeting China — has once again upset the balance.

“In the three weeks leading up to the announcement, we saw a slowdown in trade and many ships were only 50 percent full on the transatlantic and transpacific trades to the United States,” said Alexandre Charpentier, transport specialist at consulting firm Roland Berger.

During that time, sea freight rates fell and many companies held on to their stocks as a precaution.

“As of last week, we’ve had the opposite effect,” Charpentier said. “People want to ship as much as possible to the United States, they’re destocking and there has been a rush for space.”

And prices have started to rise again.

Adding to the headwinds facing shipping are new US port fees for Chinese-built and -operated ships, unveiled by Washington on Thursday and due to kick in from mid-October.

Those come on top of the tariffs of up to 145 percent the Trump administration has introduced on a large number of Chinese imports, resulting in a top tax line as high as 245 percent on some products.

China builds nearly half of all ships launched, ahead of South Korea and Japan.