Major container shipping companies have suspended scheduled weekly routes between China and the United States as President Trump’s tariffs has impacted trade.
The ships on these routes have the combined capacity to deliver 25,682 40-foot containers each week, carrying goods that U.S. manufacturers rely on, Reuters reports.
The service cuts, along with cancellations of individual voyages, come as large container ship operators adjust to mitigate the impact of President Trump’s unpredictable trade policies. These changes have sparked growing interest from policymakers, economists, and business owners, who see ocean trade, which is responsible for 80% of global commerce, as a barometer for the health of the global economy.
“This is not the precursor, it is the proof of a drop in economic activity,” Simon Sundboell, CEO, eeSea, said regarding the container vessel capacity reductions now underway.
The route suspensions include scheduled weekly services operated by MSC, Zim and the Ocean Alliance that includes Cosco, Evergreen, CMA-CGM and Orient Overseas Container Line (OOCL). Four of the service cuts affect West Coast ports, one impacts the East Coast and one hits the Gulf Coast, Sundboell commented.
However, according to Reuters, container shipping companies making these cuts have either declined to comment or did not respond immediately.
Maersk and Hapag-Lloyd’s Gemini Alliance have not suspended services, even though both have experienced serious tariff-related China to U.S. booking cuts in April and have swapped out some ships for smaller vessels.
