not only at the ports
international shipping has been severely disrupted
The introduction of tariffs comes at a particularly tricky time for many US importers, which traditionally finalise annual long-term shipping contracts with carriers in March and April, to come into force on 1 May. Such contracts are particularly critical for those importing large quantities of goods who need reliable and affordable transport.
“The timing couldn’t be any worse,” said Sand. “Many are holding back if they can and relying more on the spot market, avoiding locking themselves into contracts for volumes on trade lanes that may not be profitable to them a week or a month from now.”
US companies that import from China will undoubtedly be looking at alternative places to source their goods. However, supply chain experts warn it can take years to set up a network of supply chains, and it is not simply a question of finding a different producer.
Businesses are “trying to understand the ramifications of how to manage their supply chain,” said Marco Forgione, the director general of the Chartered Institute of Export & International Trade. “The medium-term strategy to try and reduce exposure to the US market and grow other markets, and that trade diversion is going to happen massively.”
Trade diversion is a concern for other countries, notably the EU. Europe has been warned that if it does not act swiftly to tighten its own trade barriers, it could become the dumping ground for surplus Chinese production.
Indeed, the port of Antwerp-Bruges in Belgium has been battling for several months with huge volumes of arrivals of Chinese-made electric vehicles, even before the latest wave of tariffs.
“The UK, and others, will need to strengthen their guard against an increased focus from Chinese suppliers who have to dispose of product originally intended for the US market,” said Ian Worth, a customs director at the accountancy firm Crowe.
While product dumping could lower prices for consumers in the short-term, it could also “further knock the UK’s manufacturing industry and jeopardise any efforts to onshore manufacturing,” Worth added.
In addition, yet another challenge is steaming into view on the horizon, threatening to disrupt global trade flows further. The Office of the US Trade Representative (USTR) has proposed imposing costly port fees – of about $1m for each port call – on Chinese-built ships in an attempt to revive the US’s shipbuilding industry, at a time when Chinese-made ships constitute most of the fleets of the world’s 10 largest shipping carriers.
The proposals met with significant backlash, as shipping companies and trade groups warned the fees would hurt US farm exports, increase prices for American consumers and threaten the jobs of US dockworkers if vessels called at fewer ports in response. Ships from Asia call on average at four US ports.
[URL unfurl="true"]https://www.theguardian.com/us-news/2025/apr/13/trump-tariff-uncertainties-global-supply-chains-pressure[/URL]
comrade stalin
moscow
