China-US trade soars as exporters race to hit tariff truce window
BEIJING - A temporary trade truce between the world's two largest economies has sparked a knee-jerk bounce across China's ports and factory floors.
In the week beginning May 12, when the United States and China agreed to sharply reduce tariffs for 90 days, bookings on freighters headed from China to US shores more than doubled from the prior week to about 228,000 TEUs, or twenty-foot equivalent units, data from container-tracking platform Vizion and data provider Dun & Bradstreet shows.
Prices for space on ships across the Pacific into the US also rose, with spot rates from Shanghai to Los Angeles jumping about 16 per cent – the biggest increase for the route this year – to US$3,136 per forty-foot equivalent unit for the week ending May 15, according to the Drewry World Container Index. The global composite index also rose the most this year.
And the demand wasn't just by sea: The number of international air cargo flights rose almost 18 per cent, according to data released by China's Ministry of Transport.
The surge is likely a wave of front-loading as the trade truce opens a window to avoid steep US tariffs, said Jayendu Krishna, a director at Drewry Maritime Services. It's also an important buying season for the holidays – it takes about a month for items to arrive stateside and retailers are rapidly running through inventory they've had on hand awaiting some trade certainty.
'The current surge in bookings is likely to lead to supply chain disruptions for the next two to three months, unless there is another tariff shock from Mr Trump,' Mr Krishna said.
Bookings on ships are due to be filled by factories like supply-chain manager Chen Lei's, which makes various types of home appliance products from coffee machines and toasters to irons and humidifiers. The Guangdong-based manufacturer where Chen works counts Royal Philips and Walmart among clients, and has received a flurry of requests from the US to resume production on orders that were put on hold in April.
'Machines in the factories are working non-stop now,' said Mr Chen, '90 days is too short. Production, shipping - we can't wait a single minute.'
A.P. Moller-Maersk, a major container liner that's also one of the largest on the trans-Pacific route, added capacity again after seeing an increase in bookings when the truce was announced, a spokesman said.
Even with the boost in activity from earlier weeks, the overall level of shipments remains in-line with this time in 2024. That shows many retailers are either not ordering to the same extent, waiting for more certainty, or maybe have already stocked up earlier this year.
Liners were also bringing unused capacity already on these routes back online, with the share of voided sailings down to 13 per cent as of May 26, compared to 25 per cent a week before, data from HSBC and Flexport show.
A flurry of trade figures from across Asia this week show the chaos that Mr Trump's policies have wrought this year.
In South Korea, the value of exports fell 2.4 per cent in the first 20 days of May from the prior year, with outbound shipments to the US down about 15 per cent. Japanese exports rose only 2 per cent in April – the weakest growth in seven months, data out on May 21 showed. BLOOMBERG
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
a minute ago
- Straits Times
Nasa acting chief Duffy issues directive to speed up moon reactor plans
Sign up now: Get ST's newsletters delivered to your inbox Nasa's acting administrator Sean Duffy has plans to accelerate the construction of a nuclear reactor that could be used on the moon. WASHINGTON – Nasa's acting administrator Sean Duffy plans to accelerate the construction of a nuclear reactor that could be used on the moon and alter the way the United States' space agency will partner with industry to replace the aging International Space Station. The plans, outlined in directives distributed inside Nasa and seen by Bloomberg on Aug 4, mark the first major policy changes by Mr Duffy after US President Donald Trump appointed him to the role as acting head of the space agency . One of the directives, first reported by US-based political news organisation Politico, would aim to speed up the development of a nuclear fission reactor that could be used to generate power on the moon one day and inform future designs for a powerplant that could be used on Mars. Nasa previously awarded contracts to commercial companies to come up with designs for small nuclear fission reactors, but Mr Duffy's directive instructs the space agency to put a call out to industry to create a more powerful reactor, with the goal of having technology ready for launch as early as 2030. The second directive targets Nasa's efforts to tap the commercial space industry to develop new space stations that could take over for the International Space Station when it is retired by the end of 2030. The directive changes the way the space agency will contract with the companies selected to create space station replacements, a step designed to provide more flexibility if Nasa's funding levels fluctuate in the years ahead. The moves come days after Mr Duffy met with the head of Russia's space agency, Mr Dmitry Bakanov, marking the first conclave between leaders of the two countries' space agencies since 2018. Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Singapore A look at the five committees reviewing Singapore's economic strategy Opinion Keeping it alive: How Chinese opera in Singapore is adapting to the age of TikTok Life Glamping in Mandai: Is a luxury stay at Colugo Camp worth the $550 price tag? Sport World Aquatics C'ships in S'pore deemed a success by athletes, fans and officials Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman World Trump says he will 'substantially' raise tariffs on India over Russian oil purchases During the meeting, Mr Duffy and Mr Bakanov discussed the future of the International Space Station, the orbiting laboratory which is used by both nations, and joint exploration of the moon, according to a Roscosmos statement. BLOOMBERG
Business Times
2 hours ago
- Business Times
Palantir reports revenue up 48%, cites ‘astonishing' AI impact
[SAN FRANCISCO] Palantir Technologies reported a 48 per cent increase in revenue for the second quarter to more than US$1 billion, citing the 'astonishing impact' of artificial intelligence (AI) technology on its business. The data software company also raised its revenue outlook for the full year to US$4.14 billion to US$4.15 billion, exceeding analysts' prior expectation of US$3.91 billion. The shares gained about 4 per cent in extended trading after closing at US$160.66 in New York. Denver-based Palantir has seen its stock price surge more than 500 per cent over the past year, buoyed by high expectations from investors, growth in demand for AI tools and a deep reach into both the private and public sectors. The company's US$1 billion revenue in the period ended Jun 30 exceeded analysts' average estimate of US$939 million. It said growth was particularly strong in the US, where sales jumped 68 per cent to US$733 million. Palantir said adjusted earnings per share for the quarter were 16 US cents, exceeding analyst expectations of 14 US cents. In a letter to shareholders, chief executive officer Alex Karp lingered on the company's at-times tenuous relationship with Wall Street. 'The sceptics are admittedly fewer now, having been defanged and bent into a kind of submission,' he wrote. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He also said that AI breakthroughs had helped fuel Palantir's growth, pointing to the development of large language models and the chips required to power them. Going forward, Karp said that Palantir planned to be the 'dominant software company of the future', and added, 'the market is now waking up to this reality'. Palantir has long played a role as a key US government contractor, working with both the US military, those of allied countries such as Ukraine, and partnering with new defence tech startups. The company's US government revenue climbed 53 per cent in the quarter to hit US$426 million. Meanwhile, its revenue from commercial contracts in the US climbed even quicker, rising 93 per cent for the year to hit US$306 million. In his letter to shareholders, Karp emphasised Palantir's commitment to defence tech, writing that the US is 'the most consequential country in the West', and adding, 'it must be protected'. BLOOMBERG
Straits Times
3 hours ago
- Straits Times
US ETF becomes substantial shareholder of SGX-listed small-cap; has stakes in 30 S'pore stocks
Sign up now: Get ST's newsletters delivered to your inbox AVDV ETF increased its stake in oil company Rex International to 5.3 per cent – or slightly over 69 million shares – on July 17 at $0.178 apiece. SINGAPORE - A US-based exchange-traded fund (ETF) has recently become a substantial shareholder of a Singapore-listed small-cap company. Avantis International Small Cap Value ETF (AVDV) increased its stake in oil company Rex International to 5.3 per cent – or slightly over 69 million shares – on July 17 at 17.8 cents apiece, according to a statement by the Singapore Exchange (SGX) on July 29. This transaction crossed the threshold of 5 per cent that qualifies it as a substantial shareholder under Singapore law. The fund is owned by American Century Investments, based in Kansas City, and focuses on a broad range of small-cap stocks listed in non-US developed markets, targeting those with low valuations and strong profitability. Industrials, materials, financials and energy sector stocks make up the bulk of its portfolio. Japan is the fund's largest market, while most of its other investments are in Europe and Australia. The ETF's year-to-date return as at July 31 is 25.26 per cent, and it closed at US$80.31 on Aug 1. Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Singapore A look at the five committees reviewing Singapore's economic strategy World Trump says he will 'substantially' raise tariffs on India over Russian oil purchases Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman Singapore All recruits at BMTC will be trained to fly drones and counter them: Chan Chun Sing Sport Singaporean swimmer Gan Ching Hwee at 'crossroads' after World Aquatics C'ships display Singapore Ong Beng Seng to be sentenced on Aug 15, prosecution does not object to fine due to his poor health Singapore Pritam Singh had hoped WP would 'tip one or two more constituencies' at GE2025 It was established in 2019 and has been investing in SGX-listed stocks since then. American Century's investment in Rex International makes up 0.09 per cent of AVDV's assets under management, which are valued at close to US$11 billion (S$14.1 billion). This is also the first time an ETF has become a substantial shareholder of an SGX-listed small-cap company, said Mr Geoff Howie, market strategist at SGX. Small-cap stocks are valued at under $1 billion, while large-cap stocks are over $5 billion and mid-cap stocks are valued in between. 'Outside of large-cap stocks, we had not seen an ETF provider emerge as a substantial shareholder,' said Mr Howie. He added that no ETF has made similar investments to become a substantial shareholder in small-cap companies listed on other regional exchanges. Therefore, American Century's investment could spell a new positive trend for small-cap companies in Singapore, he noted. He said: 'Small-cap stocks could emerge as a new sector for investments, especially with more companies looking to capitalise on Singapore's reputation as a good place for doing business. 'There is a lot of potential for liquidity to come into the small and mid-cap sectors.' This would also bode well for the Monetary Authority of Singapore's Equity Market Development Programme (EQDP), aimed at boosting SGX-listed stocks and revitalising Singapore's stock market. Mr Vasu Menon, managing director of investment strategy at OCBC Bank, said American Century's investment in SGX-listed small-cap stocks is testament to the confidence that global institutional investors have in the EQDP. 'It is also a recognition that undiscovered gems can be found among small and mid-cap stocks here which have underperformed against large-cap stocks.' He added that AVDV's move would help to raise the profile of small-cap stocks and generate interest from other US and global institutional funds, which should augur well for such companies listed here. Mr Matthias Chan, head of equities research at SAC Capital, said: 'If more foreign-based ETFs are drawn to Singapore equities, it will more than likely target the small to mid-cap space, and for good reason. 'Although the FTSE ST Small Cap Index may have recovered over the past year in line with the market, it is still down 11 per cent over the past three years and 7 per cent over the past five years, suggesting further meaningful upside.' AVDV is currently invested in 30 stocks listed on SGX, which delivered a 42 per cent total return on average, according to SGX. Twenty-two of these stocks delivered a higher average daily turnover of $52.9 million to date in 2025 , compared with $29.3 million for the whole of 2024. The portfolio comprises a mix of Singapore and foreign companies, many of which are in the energy and industrials sectors. Mr Howie said that AVDV's investment in foreign companies listed on SGX is testament to Singapore's advantage as a financial centre in the region with a strong currency. 'If these companies were listed in emerging Asian markets instead, they would not be part of this ETF.' Chinese investment holding firm Yangzijiang Financial Holding – the financial arm of a Chinese shipbuilding company – which has a market cap of $3.27 billion, is the ETF's largest exposure to SGX stocks. It holds 89.6 million shares, or a 2.6 per cent interest, in the company, comprising 0.61 per cent of its stock weight. This investment is also the fund's ninth largest in its entire portfolio. Other SGX-listed stocks in the ETF's portfolio include Indonesian palm oil producer First Resources, with a 1 per cent stake or 15.5 million shares; Indonesian shipping company Samudera Shipping Line, with a 2.5 per cent stake or 13.5 million shares; and Hong Kong port operator Hutchison Port Holdings Trust, with a 0.6 per cent stake or 52 million shares. The portfolio also includes a number of Singapore companies, including construction company Wee Hur Holdings, with a 2.3 per cent stake or 21.4 million shares; industrial systems company CSE Global, with a 0.8 per cent stake or 5.7 million shares; and Keppel Infrastructure Trust, with a 0.1 per cent stake or 6.9 million shares. Other Singapore companies include The Hour Glass, Raffles Medical Group and Food Empire Holdings.
