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
25 minutes ago
- South China Morning Post
How China's new Information Support Force gears military up for PLA modernisation
China's new Information Support Force (ISF) has stepped up joint training with other military branches, showcasing an integrated combat system and increased mobile and decentralised deployment capabilities, according to the official paper of the People's Liberation Army (PLA). Advertisement This includes a new training approach featuring the 'embedding' of small ISF teams into the PLA's air, naval and ground forces to offer real-time information support. Established in April 2024 as part of the PLA's modernisation push, the force is tasked with coordinating the application of network information systems within the Chinese military. While official information has been limited, recent PLA Daily reports have offered a rare glimpse into the operations of the force – which also plays a pivotal role in incorporating advanced technologies such as artificial intelligence (AI) into the military's decision-making and combat systems. 02:09 China stages drone and counter-drone warfare demonstration China stages drone and counter-drone warfare demonstration In the 15 months since the force's establishment, restructuring measures such as setting up a new ISF base had been implemented down to the frontline levels, the PLA Daily said.
RTHK
an hour ago
- RTHK
Hang Seng Index closes down 1.09pc
Hang Seng Index closes down 1.09pc The Hang Seng Index closed at 25,388 points. File photo: RTHK Stock markets fell on Friday as their latest rally ran out of steam, with sentiment weighed by strong US jobs data that saw investors row back expectations for interest rate cuts. Mainland stocks closed lower with the Shanghai Composite Index down 0.33 percent to 3,593 points, and the Shenzhen Component Index down 0.22 percent, closing at 11,168 points. In Hong Kong, the Hang Seng Index fell 1.09 percent, closing at 25,388 points. The markets eagerly await to see if US Fed Chairman Jerome Powell will cut interest rates. US President Donald Trump had pressed for a rate cut again during a visit to the Federal Reserve headquarters on Thursday. (AFP/Xinhua)
South China Morning Post
an hour ago
- South China Morning Post
China to amend key law as push to stamp out vicious price wars intensifies
China plans to amend a decades-old pricing law as part of an ongoing campaign to curb the vicious price wars plaguing several industries – a deep-rooted issue that threatens to wipe out corporate profits and fuel deflationary pressure. The amendment, which covers 10 clauses in the law, updates the definition of unfair pricing practices to include 'involution-style' competition, according to a draft released by China's National Development and Reform Commission (NDRC) and the State Administration for Market Regulation on Thursday. The term 'involution' has become a buzzword in China that refers to the excessive, cutthroat style of competition that has emerged in several industries, as companies facing weak domestic demand and oversupply problems slash prices in a bid to attract customers. The trend has become a serious concern for Beijing in recent months, with Chinese officials repeatedly vowing to stamp out the price wars and criticising companies that engage in 'disorderly' styles of competition that risk undermining economic growth. As China's economic landscape had undergone profound changes, the pricing law that originally came into effect in 1998 needed to be updated, government agencies said in a statement. 'With new economic forms and business models continuing to emerge, some industries have seen prominent cases of disorderly low-price competition, creating new demand for price regulation and oversight,' the statement said. The amendment, which is open for public comment until August 23, adds a new clause stating that businesses shall not force other operators to dump products at below-cost prices. Previously, the law only banned firms from selling goods below cost to eliminate competitors or monopolise the market.
