DONALD Trump's proposed import tariffs would see the cost of shipping goods by ocean increase in a repeat of the market spike seen during his first term as US President, reports Greece's Container News.
Mr Trump defended his trade policy during the recent Presidential Debate, which includes blanket tariffs of up to 20 per cent on all imports and additional tariffs of 60 per cent to 100 per cent on goods from China.
However, data released by Xeneta - the ocean freight rate intelligence platform - shows the last time Mr Trump ramped up tariffs on China imports during the trade war in 2018, the ocean container shipping markets spiked more than 70 per cent.
Peter Sand, Xeneta chief analyst, said: 'Raising barriers to trade is almost always a negative move. We saw the cost of shipping goods by ocean spike dramatically when Trump introduced tariffs back in 2018 and his latest proposals will simply be a case of history repeating.'
Mr Trump stated during the debate with Kamala Harris that his proposed import tariffs would not result in increased prices for consumers, however Mr Sand disagrees.
He said: 'When ocean container shipping rates increase, that cost gets passed down the line and ultimately it is the end-consumer who pays the price. It could be through increased cost of goods on the shelves or a limited choice in the products available.'
Mr Trump's tariff proposals come at a time when global ocean supply chains are already under immense strain due to conflict in the Red Sea.
This has caused spot rates on the trade from the Far East to US East Coast to increase 303 per cent between December 1, 2023, and July 1, 2024. Spot rates from the Far East to US West increased 389 per cent in the same period.
Mr Sand said: 'Shippers react to supply chain threats by rushing to import as many goods as possible as quickly as they can. Frontloading of imports has contributed to the massive increases in freight rates following the outbreak of conflict in the Red Sea and we will see the same behaviour from shippers ahead of any new tariffs coming into force.
'Whether it is trade wars or conflict in the Red Sea, geo-political disruptions are toxic for ocean supply chains, and they are happening with a higher frequency than ever before.
SeaNews Turkey
Mr Trump defended his trade policy during the recent Presidential Debate, which includes blanket tariffs of up to 20 per cent on all imports and additional tariffs of 60 per cent to 100 per cent on goods from China.
However, data released by Xeneta - the ocean freight rate intelligence platform - shows the last time Mr Trump ramped up tariffs on China imports during the trade war in 2018, the ocean container shipping markets spiked more than 70 per cent.
Peter Sand, Xeneta chief analyst, said: 'Raising barriers to trade is almost always a negative move. We saw the cost of shipping goods by ocean spike dramatically when Trump introduced tariffs back in 2018 and his latest proposals will simply be a case of history repeating.'
Mr Trump stated during the debate with Kamala Harris that his proposed import tariffs would not result in increased prices for consumers, however Mr Sand disagrees.
He said: 'When ocean container shipping rates increase, that cost gets passed down the line and ultimately it is the end-consumer who pays the price. It could be through increased cost of goods on the shelves or a limited choice in the products available.'
Mr Trump's tariff proposals come at a time when global ocean supply chains are already under immense strain due to conflict in the Red Sea.
This has caused spot rates on the trade from the Far East to US East Coast to increase 303 per cent between December 1, 2023, and July 1, 2024. Spot rates from the Far East to US West increased 389 per cent in the same period.
Mr Sand said: 'Shippers react to supply chain threats by rushing to import as many goods as possible as quickly as they can. Frontloading of imports has contributed to the massive increases in freight rates following the outbreak of conflict in the Red Sea and we will see the same behaviour from shippers ahead of any new tariffs coming into force.
'Whether it is trade wars or conflict in the Red Sea, geo-political disruptions are toxic for ocean supply chains, and they are happening with a higher frequency than ever before.
SeaNews Turkey
