RATES for shipping containers from China to the us have dropped by more than half since earlier this month, as imports rebounded less than expected after the slump that followed President Donald Trump slapping 145 per cent tariffs on China, Reuters reports.
Trump quickly reversed course by lowering the rate to 30 per cent. That cost increase on goods from the nation's No 1 ocean trading partner remains significant, especially at a time when US economic data is signaling weakness.
Rates on the closely watched Shanghai-to-US west coast route appear to have found a near-term floor at around US$2,500 per FEU, after peaking early this month at around $6,000, Jefferies shipping analyst Omar Nokta said.
Shipping rates had surged to their recent peaks after Trump cut tariffs on China to 30 per cent from 145 per cent. That led US importers to rush in new orders on goods they had halted because of the astronomical levy.
The retreat in shipping rates 'is a sign that the recent surge in imports to the US ... will fail to have the lasting impact we had initially expected,' maritime consultancy Drewry said.
Drewry's World Container Index fell nine per cent for the second consecutive week following five weeks of gains.
US consumers have yet to feel the full effects of tariffs because many importers stockpiled goods ahead of the new duties - delaying price hikes.
Walmart, the world's largest retailer and top ocean importer, warned it would start raising prices in late May and June.
Federal Reserve chairman Jerome Powell said he expects tariffs to start stoking inflation this summer.
Tariffs have already risen on some goods, but there is a coming July 9 deadline for higher levies on a broad set of countries. No one is certain whether Trump will back down to a 10 per cent baseline tariff that analysts are using as a minimum, or whether he will impose something more aggressive.
SeaNews Turkey
Trump quickly reversed course by lowering the rate to 30 per cent. That cost increase on goods from the nation's No 1 ocean trading partner remains significant, especially at a time when US economic data is signaling weakness.
Rates on the closely watched Shanghai-to-US west coast route appear to have found a near-term floor at around US$2,500 per FEU, after peaking early this month at around $6,000, Jefferies shipping analyst Omar Nokta said.
Shipping rates had surged to their recent peaks after Trump cut tariffs on China to 30 per cent from 145 per cent. That led US importers to rush in new orders on goods they had halted because of the astronomical levy.
The retreat in shipping rates 'is a sign that the recent surge in imports to the US ... will fail to have the lasting impact we had initially expected,' maritime consultancy Drewry said.
Drewry's World Container Index fell nine per cent for the second consecutive week following five weeks of gains.
US consumers have yet to feel the full effects of tariffs because many importers stockpiled goods ahead of the new duties - delaying price hikes.
Walmart, the world's largest retailer and top ocean importer, warned it would start raising prices in late May and June.
Federal Reserve chairman Jerome Powell said he expects tariffs to start stoking inflation this summer.
Tariffs have already risen on some goods, but there is a coming July 9 deadline for higher levies on a broad set of countries. No one is certain whether Trump will back down to a 10 per cent baseline tariff that analysts are using as a minimum, or whether he will impose something more aggressive.
SeaNews Turkey
