Latest news with #China-to-U.S.
Yahoo
30-06-2025
- Business
- Yahoo
Asia-to-North America Air Cargo Demand Plunges 10.7% After De Minimis Suspension
Air cargo demand from Asia to North America declined 10.7 percent annually in May in the month following the U.S. closure of the de minimis trade exemption for goods imported from China. Despite the double-digit collapse on the all-important trade lane, which carries the largest market share in the industry at 24.4 percent of cargo-tonne kilometers (CTKs), overall air cargo demand worldwide increased 2.2 percent during the month. More from Sourcing Journal China Dominates Textile Machinery Investment as Global Shipments Show Divergence in 2024 China Trade Deal Solidified As Talks With Canada Devolve EU Cracks Down on $700M Customs Fraud Ring Tied to Chinese Imports Willie Walsh, director general of the International Air Transport Association (IATA), which released the data on Monday, called the global demand growth 'encouraging news.' 'A 10.7 percent drop in traffic on the Asia-to-North America trade lane illustrated the dampening effect of shifting U.S. trade policies,' said Walsh in a statement. 'Even as these policies evolve, already we can see the air cargo sector's well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries.' Although seasonally adjusted month-over-month data saw global air cargo demand contract by 1 percent, IATA called May's weakening numbers 'less dramatic than feared by many.' Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 2 percent from the year-ago month, with Asia-Pacific based airlines seeing a capacity increase of 5.7 percent. According to the industry body, belly-hold cargo capacity gained 5.8 percent year-over-year and 5.5 percent month-over-month in May 2025, marking the highest jump since 2019. IATA already lowered its 2025 air cargo demand forecast at the start of June amid the projected impacts of the de minimis suspension, as well as the tariffs the Trump administration placed on U.S. trade partners. Total demand is projected to increase only 0.7 percent this year to 275.7 billion CTKs, down from the initially estimated 6 percent CTK growth in December. A monthly freight report from international freight forwarder Dimerco Express Group released Sunday indicated that air freight demand from China to the U.S. and E.U. remains weak, with 'no signs of recovery' in e-commerce volumes. As a result, scheduled freighter flights continue to be cancelled. China-U.S. cargo volumes have declined by as much as 60 percent, the report said, with e-commerce bookings down approximately 50 percent in May and June since de minimis was halted. FedEx recently backed this data, saying that China-to-U.S. volumes 'deteriorated sharply' in early May, resulting in flat international export revenue for the fourth quarter. Rates out of China have still been falling as the demand declines persist, with weekly China-to-North America weekly prices falling 2 percent to $5.18 per kilogram, according to a July 24 update from Freightos. While the IATA indicated the practice of front-loading cargo into the U.S. via air had likely run its course ahead of the July 9 tariff deadline for most country-specific tariffs, the Dimerco report said that demand out of Southeast Asia—particularly from Thailand and Vietnam—is starting to pick up due to the upcoming deadline. Unlike all regions of China and Hong Kong, in which U.S.-bound cargo demand is categorized as 'soft,' the Southeast Asian markets are expected to see an upturn in demand, or already have tight space. Air freight capacity and rates remain stable out of Vietnam, according to Dimerco, but freight rates may rise in early July as the tariff deadline approaches. For Thailand, the freight forwarder recommends importers to book cargo to the U.S. and Canada one week ahead, as current rates are high. India's air freight rates are expected to increase as well as disruptions to global shipping routes are posing challenges for the country's export sector. According to the Dimerco report, tensions in the Middle East may affect capacity and rates for shipments between the E.U., the U.S. and the Indian subcontinent. As June marks the end of the quarter, air freight backlogs out of Singapore are expected to build in July, driven by increased manufacturing activity in electronics and garments. Although rates could see an increase out of southeast Asia in July, it will come after a global cooling down period in part because of the de minimis suspension. According to IATA, cargo freight rates across all trade lanes declined for the first time in 2025 in May, by 2.9 percent year over year and 3.7 percent month over month. More recent data indicates that rates are still down from 2024 levels worldwide. According to WorldACD, which analyzes more than 500,000 transactions per week, rates were $2.43 per kilogram for the week of June 16-22, down 1.2 percent from the year-ago period, but up 1.7 percent from the $2.39 per kilogram the week prior. Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
Hapag-Lloyd Bookings Double on China-US Route in Weeks After Tariff Truce
After the temporary tariff relief on Chinese imports into the U.S. resulted in a 50-percent one-week surge in bookings for Hapag-Lloyd on the trade route between countries, container flow accelerated even further in the weeks after. Bookings out of China more than doubled in the three weeks after the 90-day trade truce was put into effect, according to CEO Rolf Habben Jansen. More from Sourcing Journal Guess Limits Tariff Impact to Less Than $10M, Adjusts Sourcing and Buying Strategies Panama Canal Sees Post-Drought Spike in Container Shipping Transits US Trade Deficit Contracted in April Amid Tariff-Driven Import Paralysis 'We now need to see over the upcoming couple of weeks what is going to happen, and how much of that cargo rush is going to remain,' said Habben Jansen in a recent online panel discussion hosted by the ocean carrier. Despite various projections calling for a contraction in global container volumes for the year, Hapag-Lloyd revised its outlook upward from its previous flat growth forecast on the back of the recent uptick, projecting global container demand to increase 4 percent. 'I would still expect us to see decent growth in the second quarter,' said Habben Jansen. While China-to-U.S. volumes account for roughly 5 percent of Hapag-Lloyd's total business, the U.S. overall represents 27 percent of its volumes, Habben Jansen said. Approximately 22 percent of global container flows at the company go through American ports. With the U.S. remaining a sizable chunk of the liner's business, the concerns of volatility stemming from the stop-and-start nature of President Donald Trump's tariff decisions makes it challenging to plan for. Case in point, in the company's earnings call in mid-May, the CEO said Hapag-Lloyd saw bookings decrease 20 percent on average in the period after the Liberation Day tariffs were applied and ahead of the tariff rollback. But the China-to-U.S. demand picked up so quickly that Hapag-Lloyd and Gemini Cooperation partner Maersk introduced a new direct trans-Pacific service with a rotation of Xiamen, China; Busan, South Korea; and Long Beach, Calif.. The first sailing will take place out of Xiamen on June 24. The 'WC6' service will connect Busan and Long Beach with a transit time of 14 days, and a competitive direct Xiamen service into Long Beach in 18 days. Hapag-Lloyd's move reflects the industry at large, which has sought to add more capacity on the trans-Pacific trade lane to capitalize on shippers' rush to get cargo space ahead of tariff deadlines in July and August. As the Gemini alliance partners prep to start their new service offering, the carriers still lead the pack when it comes to schedule reliability, keeping their 90 percent schedule reliability goal intact across March and April. The alliance expects to be fully 'phased in' by July, meaning that all shared vessels will sail on Gemini schedules. 'Only then will it be possible to truly evaluate their performance,' said Alan Murphy, CEO of Sea-Intelligence, in the monthly update. Gemini Cooperation officially came in with 90.7 percent reliability, with MSC following suit far behind at 69.8 percent. The Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming recorded 53 percent reliability in the two-month stretch. Habben Jansen said he was encouraged by the alliance's ability to ensure Hapag-Lloyd's first-quarter volumes surpassed the wider market with 9 percent growth, ahead of the 4.2 percent global growth experienced by the wider container shipping sector. 'That was the intention when we started [the partnership]. We knew that we needed to attract more volumes to fill those ships, also because we lose fewer sailings as we don't do blank sailings, as we used to do,' Habben Jansen said. 'And we sail on time, which basically means that we can use the ships more often. It's very nice to see that also reflected in the numbers, and hopefully we'll see more of that as we move into Q2.' Although competitor CMA CGM has introduced another service line back on the Suez Canal route, Hapag-Lloyd does not have intentions of following suit—the attitude still taken by most major container shipping firms. According to Habben Jansen, the story remains the same. There must be a clear indication that vessels and crew will be safe from potential Houthi attacks. 'If we go back then we will have to do that step by step, as we would like to avoid chaos in the Mediterranean and in Europe in particular, and to a lesser extent, on the East Coast of the U.S.,' said Habben Jansen. 'Right now, we do not see any signs that it is going to be and remain safe in the near future.' Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Hapag-Lloyd Bookings Double on China-US Route in Weeks After Tariff Truce
After the temporary tariff relief on Chinese imports into the U.S. resulted in a 50-percent one-week surge in bookings for Hapag-Lloyd on the trade route between countries, container flow accelerated even further in the weeks after. Bookings out of China more than doubled in the three weeks after the 90-day trade truce was put into effect, according to CEO Rolf Habben Jansen. More from Sourcing Journal Guess Limits Tariff Impact to Less Than $10M, Adjusts Sourcing and Buying Strategies Panama Canal Sees Post-Drought Spike in Container Shipping Transits US Trade Deficit Contracted in April Amid Tariff-Driven Import Paralysis 'We now need to see over the upcoming couple of weeks what is going to happen, and how much of that cargo rush is going to remain,' said Habben Jansen in a recent online panel discussion hosted by the ocean carrier. Despite various projections calling for a contraction in global container volumes for the year, Hapag-Lloyd revised its outlook upward from its previous flat growth forecast on the back of the recent uptick, projecting global container demand to increase 4 percent. 'I would still expect us to see decent growth in the second quarter,' said Habben Jansen. While China-to-U.S. volumes account for roughly 5 percent of Hapag-Lloyd's total business, the U.S. overall represents 27 percent of its volumes, Habben Jansen said. Approximately 22 percent of global container flows at the company go through American ports. With the U.S. remaining a sizable chunk of the liner's business, the concerns of volatility stemming from the stop-and-start nature of President Donald Trump's tariff decisions makes it challenging to plan for. Case in point, in the company's earnings call in mid-May, the CEO said Hapag-Lloyd saw bookings decrease 20 percent on average in the period after the Liberation Day tariffs were applied and ahead of the tariff rollback. But the China-to-U.S. demand picked up so quickly that Hapag-Lloyd and Gemini Cooperation partner Maersk introduced a new direct trans-Pacific service with a rotation of Xiamen, China; Busan, South Korea; and Long Beach, Calif.. The first sailing will take place out of Xiamen on June 24. The 'WC6' service will connect Busan and Long Beach with a transit time of 14 days, and a competitive direct Xiamen service into Long Beach in 18 days. Hapag-Lloyd's move reflects the industry at large, which has sought to add more capacity on the trans-Pacific trade lane to capitalize on shippers' rush to get cargo space ahead of tariff deadlines in July and August. As the Gemini alliance partners prep to start their new service offering, the carriers still lead the pack when it comes to schedule reliability, keeping their 90 percent schedule reliability goal intact across March and April. The alliance expects to be fully 'phased in' by July, meaning that all shared vessels will sail on Gemini schedules. 'Only then will it be possible to truly evaluate their performance,' said Alan Murphy, CEO of Sea-Intelligence, in the monthly update. Gemini Cooperation officially came in with 90.7 percent reliability, with MSC following suit far behind at 69.8 percent. The Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming recorded 53 percent reliability in the two-month stretch. Habben Jansen said he was encouraged by the alliance's ability to ensure Hapag-Lloyd's first-quarter volumes surpassed the wider market with 9 percent growth, ahead of the 4.2 percent global growth experienced by the wider container shipping sector. 'That was the intention when we started [the partnership]. We knew that we needed to attract more volumes to fill those ships, also because we lose fewer sailings as we don't do blank sailings, as we used to do,' Habben Jansen said. 'And we sail on time, which basically means that we can use the ships more often. It's very nice to see that also reflected in the numbers, and hopefully we'll see more of that as we move into Q2.' Although competitor CMA CGM has introduced another service line back on the Suez Canal route, Hapag-Lloyd does not have intentions of following suit—the attitude still taken by most major container shipping firms. According to Habben Jansen, the story remains the same. There must be a clear indication that vessels and crew will be safe from potential Houthi attacks. 'If we go back then we will have to do that step by step, as we would like to avoid chaos in the Mediterranean and in Europe in particular, and to a lesser extent, on the East Coast of the U.S.,' said Habben Jansen. 'Right now, we do not see any signs that it is going to be and remain safe in the near future.'
Yahoo
21-05-2025
- Business
- Yahoo
LA Port Director Expects ‘Muted' Peak Season Despite Expected Cargo Surge
Although temporary relief was granted to China-to-U.S. supply chains when the countries agreed to substantially roll back tariffs for 90-days, West Coast ports are starting to feel the initial impacts of tariffs after a busy April. The Port of Los Angeles experienced a more than 30 percent decline in inbound cargo volume in the first week of May, with the remainder of the month 'likely to be substantial,' according to executive director Gene Seroka. More from Sourcing Journal US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in NRF VP: Retailers 'Need Clarity' on New China Tariff Deadline Trans-Pacific Freight Rates Soar as China Cargo Bookings Rebound Its twin gateway, the Port of Long Beach, is now expecting a more than 10-percent drop-off in imports, according to CEO Mario Cordero. During the first 15 days of this month, 74 container ships arrived at the San Pedro Bay ports, 11 fewer than usual, according to data from Marine Exchange of Southern California. The Port of Los Angeles processed 842,806 20-foot equivalent units (TEUs) in April, 9.4 percent more than last year. the Port of Long Beach, moved 867,493 TEUs in April, up 15.6 percent from the same month last year and surpassing the previous record set in April 2022 by 5.7 percent. So far this month, 17 out of 80 sailings have been canceled and another 10 cancellations next month are expected, Seroka said during his monthly news briefing held Monday. The industry has largely seen a surge in China-to-U.S. cargo bookings in the wake of the rollback, with container movement on the trade lane skyrocketing 157.6 percent week-over-week for the week of May 12, according to data from container-tracking platform Vizion. This is the strongest weekly volume this year by landslide, the company says. But Seroka has held a more subdued viewpoint about the impacts of the incoming imports on the L.A. port in recent interviews. His recent briefing was no different. 'You won't see a deluge of freight here at the Port of Los Angeles,' said Seroka. 'That likely means that there'll be lower inventory across a variety of retail sectors. That'll leave us with fewer selections of products and likely higher prices. But for now, uncertainty remains in every business meeting that I have.' Based on the lower inventory and higher prices, Seroka expects import levels during the peak season 'may be a little bit more muted compared to years past.' While Seroka acknowledged that the L.A. port was going to see an uptick in bookings from China, he said any potential surge would not overtly impact the gateway's ground operations. Seroka highlighted the port's ability to learn from Covid in moving 25 percent more empty containers back to Asia in April, using it as an example for how it better responds to 'the peaks and valleys of import demand.' 'Right now, we have less than 30 percent of the number of containers that we had during the peak during Covid,' Seroka said. Like Seroka, ZIM CEO Eli Glickman did not want to jump the gun on import projections either, and remained cautious on the expectations for trans-Pacific trade for the remainder of 2025 even after the anticipated surge. According to Glickman, it is 'too early' to determine whether the coming rush will represent a return to normalized U.S.-China volumes. 'I think the more important element that will allow us to have a more definitive view as to how volume can look like for the second half of 2025 will be very much where we'll land from a tariff discussion perspective once the [first] 90-day pause has elapsed, which is now coming up soon July 9,' said Glickman. Nevertheless, ZIM is one of multiple carriers realigning its network to account for a possible trans-Pacific normalization, with the ocean carrier reversing its prior decision to suspend its Central China Xpress (ZX2) service line. This reinstates a trade lane that travels eastbound directly from the Port of Ningbo to Los Angeles, before traveling west back to the Port of Shanghai. Ocean Network Express (ONE), HMM and Yang Ming will bring forward their Premier Alliance Pacific South 5 (PS5) service launch to June 5 in anticipation of increased market demand. The six-week service will host six vessels, and will call at the ports of Qingdao and Ningbo before sailing the Pacific to the Long Beach and Oakland ports. It will then turn back to Kobe, Japan, before returning to Qingdao. One carrier, South Korea's KMTC, is returning to the trans-Pacific trade lane for the first time in 40 years, joining SeaLead Shipping's Asia-to-U.S. West Coast service. That line will start sailing on June 17, with KMTC providing one vessel to the grouping.
Yahoo
20-05-2025
- Business
- Yahoo
China tariff reduction drives uptick in Asia-to-US bookings
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. The Port of Los Angeles expects to see bookings from Asia pick up following the 90-day tariff reduction on China-based goods, Executive Director Gene Seroka said during a May 19 press briefing. A push to import cargo prior to duties increasing to 145% again will likely contribute to the uptick, Seroka said. However, prices are still very much elevated, which will continue impacting shipping activity. 'We'll probably see that uptick in origin bookings, especially from China, but I don't see a surge that would really overtly impact the Port of Los Angeles,' Seroka said. 'On the ground right now, we have less than 30% the number of containers that we had during the peak of the peak during COVID.' Shippers and supply chain stakeholders have battled trade instability as negotiations play out between the U.S. and China. After months of tariff-driven frontloading — a common strategy to navigate logistics hurdles — some shippers began pausing ocean shipments from China to avoid paying the high tariff rates. In April, China-to-U.S. freight demand plummeted 30% to 50%, per Freightos. Trading partners outside of China have been subject to a 10% baseline tariff since President Donald Trump issued a 90-day pause on most country-specific duties in April. However, the 90-day pause is 'not a long time in our business,' Seroka said. 'May is traditionally the month where a lot of purchase orders go in for the year-end and Christmas holidays,' he said. 'It typically takes about three months to send an order to a factory, have those goods made and get them ready to ship from Asia to the United States.' The port director added that there may also be a stronger flow of goods, like hospital supplies and some manufactured parts and components, as inventory dwindles Last month the Port of Los Angeles processed 842,806 twenty-foot equivalent units, up 9.4% year over year — its third-best April on record, the port reported. Since the start of 2025, the port has handled over 3.3 million TEUs, up 6.2% YoY. Loaded imports landed at 439,230 TEUs in April, up 5% YoY primarily due to importers pushing to move cargo before tariffs take effect. Exports, meanwhile, were down 3% YoY to 128,394 units, marking the fifth consecutive month in declining exports. Empties were up 25% YoY to 275,183 container units. Seroka also reported a 30% drop in imports in the first week of May, adding that the total monthly decrease is 'likely to be substantial." Looking ahead, cargo flows for June and July remain uncertain, said Seroka. In May, 17 of 80 sailings have been canceled so far — 11 of those cancellations being China port calls. As of the press briefing, 10 cancellations are slated for June. Seroka noted that a third-party logistics company reported that bookings three weeks down the line are 80% of what is typically expected for this time of year. 'So, I don't know that we're going to see — with the information I have today — that we're going to see just such an amount of cargo that it's going to put us at a stoppage and have ships at anchor, like we witnessed before,' he said. 'I think it's a more deliberate flow, and I'm looking at real data from trusted contacts in Asia that are working both private sector and at ports, looking at how these bookings are starting to pick up.' Recommended Reading Brands temporarily halt ocean shipments from China Sign in to access your portfolio
