US President Donald Trump’s trade threats have added to the uncertainty in global ocean shipping, with companies facing hefty tariffs and port fees. The move has been described as “unprecedented” by experts, who warn it could reduce international trade and weaken container ship owners’ negotiating power.
The industry is bracing for the impact of new tariffs on goods from China, Mexico, Canada, and the European Union, which could lead to higher costs and reduced demand. Global shipping rates have already softened, but a pullback in imports due to tariff-related cost increases could put downward pressure on freight rates.
Additionally, Trump’s administration has proposed port fees for Chinese-built ships, which could benefit Taiwanese and South Korean liner operators but harm container carriers. Experts say the economic burden on US exporters and importers will be significant, and that the actions taken by the US administration are unprecedented in scope and scale.
The ripple effects of increased protectionism are being felt globally, with global supply chains managing higher costs from climate change-related severe weather events and routing ships away from the Suez Canal to avoid attacks. The Drewry World Container Index’s spot rate for a 40-foot container is currently at $2,629, down 75% from its pandemic peak in September 2021.
As companies prepare for contract renegotiation, they face an uncertain future with trade tensions escalating. The conference in Long Beach this week marks the start of container shipping contract negotiating season, and attendees are bracing for the challenges ahead.
Source: https://www.reuters.com/markets/commodities/trump-trade-threats-compound-global-ocean-shipping-uncertainty-2025-03-03