According to Xeneta, Donald Trump’s victory in the US Presidential Election sparks fear in international trade as importers fear another spike in ocean container shipping freight rates.
Xeneta states that Trump has vowed blanket tariffs of up to 20% on all imports into the US and additional tariffs of 60% to 100% on goods from China.
Data from Xeneta, shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.
The knee-jerk reaction from US shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.
…said Peter Sand, Chief Analyst, Xeneta.
Peter Sand continued by stating that the negative impact of tariffs during Trump’s first term in office in 2018 was seen when ocean container shipping rates spiked 70%. Shippers will be fearing more of the same this time around.
Concluding, Peter Sand highlighted the fact that 2024 has been a brutal year for US shippers who have already endured massive disruption due to the Red Sea crisis and spiralling freight rates.
There is also the looming threat of further strike action at ports on the US East Coast and Gulf Coast in January next year.
