How will Trump's reciprocal tariffs affect Chinese shipping lines?
The Shanghai Containerised Freight Index, a key benchmark for global shipping rates compiled by the Shanghai Shipping Exchange, fell 7.27 per cent last week to 1,758.82, marking its fifth consecutive weekly decline. The index peaked at 3,733.80 in July, as global shipping was affected by the Red Sea crisis . Houthi militants in Yemen launched attacks on shipping in the Red Sea, which leads to the Suez Canal, after the Israel-Gaza war began in October 2023.
Stephen Gordon, managing director at shipping data provider Clarksons Research, attributed the drop in the index to seasonal factors, saying freight volumes had eased during China's Lunar New Year holiday.
Container shipping rates rose in the fourth quarter of last year as businesses rushed to ship goods before the holiday and before new tariffs could be imposed by the United States.
According to a report released by Clarksons on Monday, additional 10 per cent tariffs on imports from China imposed by Trump earlier this month could have an impact on up to 90 million tonnes of seaborne trade, accounting for 0.7 per cent of global maritime shipments.
Gordon said container shipping was among the sectors most exposed to new US tariffs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
Trump announces 90-day negotiating period with Mexico as 25% tariff rates stay
US President Donald Trump said on Thursday that there would be a 90-day negotiating period with Mexico after a call with that country's leader, Claudia Sheinbaum, as the 25 per cent tariff rates stay in place. Trump, posting on Truth Social, said his phone conversation with Sheinbaum was 'very successful in that, more and more, we are getting to know and understand each other'. Trump said that goods from Mexico imported into the US would continue to face a 25 per cent tariff that the US president has ostensibly linked to fentanyl trafficking. The Republican said that autos would face a 25 per cent tariffs, while copper, aluminium and steel would be taxed at 50 per cent. Trump said that Mexico would end its 'Non Tariff Trade Barriers', but he did not provide specifics. 03:01 US appeals court allows Donald Trump's tariffs to stay in effect US appeals court allows Donald Trump's tariffs to stay in effect Some goods continue to be protected from the tariffs by the 2020 US Mexico Canada Agreement, or USMCA, which Trump negotiated during his first term.
South China Morning Post
5 hours ago
- South China Morning Post
Trump's cooper-tariff tumult sees prices fall as scope of impact defies expectations
US President Donald Trump signed an executive order imposing a 50 per cent tariff on certain copper imports – notably excluding refined copper – on Wednesday, sending US copper prices tumbling by around 20 per cent to US$4.44 a pound as of Thursday afternoon. Advertisement The move clarified the scope of Trump's initial announcement in early July, which had led US futures prices to rally to a record high of nearly US$6 and prompted traders to accelerate shipments in anticipation of widespread duties. In this explainer, the Post examines the differences between the finalised tariffs and Trump's previous threat, while looking at what the move could mean for global markets. How do the new tariffs compare with Trump's earlier threat? Trump's initial threat of a 50 per cent copper levy on July 8 was vague on specifics, but the market had broadly expected it to encompass all forms of the metal, from raw materials to finished products. The newly announced tariffs, however, are far more limited in scope. According to the White House, the tariffs – which take effect on Friday – apply only to imports of semi-finished copper products, such as copper pipes and wires, and certain copper-intensive goods, such as cables and electrical components. Advertisement Input materials for smelters and manufacturers, such as ores, concentrates and, crucially, cathodes, are exempted from the steep duties. Cathodes, also known as refined copper, represent the US' chief copper imports – the country operates only two primary copper smelters and lacks the domestic processing capacity to meet its own needs for refined copper.
South China Morning Post
6 hours ago
- South China Morning Post
Did Philippines get low Trump tariffs, ‘exemptions', from quiet talks?
The Philippines has quietly secured tariff exemptions that sharply reduce the impact of US President Donald Trump 's 19 per cent import levy – cutting the effective rate on its exports to just over 6 per cent, according to a former senior lawmaker. Advertisement The exemptions follow President Ferdinand Marcos Jnr 's state visit to Washington last week, where Trump announced that the Philippines would face a 19 per cent tariff rate . This is down from the 20 per cent he had previously threatened, but still higher than the 17 per cent he originally included under an executive order in April. Trump hailed the deal as a win and praised Marcos as a 'very good and tough negotiator', while Philippine officials noted that further discussions were ongoing to clarify and potentially revise the terms. According to Joey Salceda, former chair of the Philippine House of Representatives' ways and means committee, Marcos' trip helped secure and expand key exemptions embedded in Annex II of Trump's executive order – particularly for electronics and semiconductors Salceda said the resulting 'effective rate' now stood at around 6.33 per cent – the second lowest in Asia, behind only Malaysia , which was exempted on oil. Advertisement Speaking at a news forum on Saturday, Salceda stated that Philippine negotiators had been quietly engaging with their American counterparts even before the executive order was issued, with discussions continuing in the lead-up to, during, and after the Marcos visit.
