Latest news with #LisaBaertlein
Yahoo
09-06-2025
- Business
- Yahoo
USTR eases proposed penalties, fees for non-US LNG tankers, vehicle carriers
By Lisa Baertlein LOS ANGELES (Reuters) -The U.S. Trade Representative softened fee proposals for non-U.S.-built LNG tankers and car carriers amid its ongoing effort to counter China's dominance on the high seas and revive domestic shipbuilding. The revised proposal, unveiled by USTR on Friday, would remove LNG-related penalties for failing to export a percentage of fuel on U.S.-owned ships. It also would reduce fees when foreign-built car carriers visit domestic ports and exempt those vessels when they are serving the U.S. military. USTR previously exempted ships carrying U.S. exports as well as operators of smaller ships from port fees originally aimed at China-linked vessels. The agency also exempted vessels that service the Great Lakes, Caribbean and U.S. territories. "This is a step in the right direction, and we look forward to working with USTR on a solution that ensures U.S. LNG remains competitive on the global stage," Rob Jennings, vice president of natural gas markets for the American Petroleum Institute, said on Monday. USTR caught the liquified natural gas industry off guard in April with new rules for outbound shipments of that fuel, sparking an outcry. It also surprised the vehicle carrier industry with a plan to impose port fees on all non-U.S.-built vessels in that segment - including U.S.-flagged and U.S.-crewed ships admitted to the U.S. Maritime Security Program (MSP) that supports Washington's military readiness. USTR on Friday removed language saying it could suspend LNG export licenses until its rules for moving a percentage of outgoing shipments on U.S.-built and operated vessels were met. On April 17, USTR said LNG producers would have to transport 1% of their exports on U.S.-built ships starting in April 2029. That percentage would escalate to 15% in April 2047 and beyond. The World Shipping Council, whose members vehicle carriers such as Norway's Wallenius Wilhelmsen, did not immediately comment on the revisions. The vehicle carrier fee effective October 14 was to be $150 per car capacity of a non-U.S.-built ship known as roll-on/roll-offs, or RoRos. Typical RoRos have capacity to carry nearly 5,000 vehicles. In the revision, USTR lowered that fee to $14 per net ton. It also exempted vessels in the MSP, as well as U.S. government cargo - matching previous exemptions made for other vessel segments. Companies with ships in the MSP include Florida-based American Roll-On, Roll-Off Carrier Group, a U.S.-flag operator of vehicle carriers that is part of Wallenius Wilhelmsen Group, which did not immediately comment. The RoRo fees come on top of steep, 25% fees on auto imports imposed by Trump. These affect mainly European vehicles. U.S. exporters also use RoRos to export U.S.-made BMW SUVs, John Deere tractors and other goods. Shipping industry groups and attorneys have said USTR overreached by levying fees on RoRos made in countries that were not part of the Biden administration's fast-track investigation into China. The USTR's revisions continued to reference "non-U.S. built" vehicle carriers. Interested parties, which were not previously given the opportunity to comment on rules for RoRos or LNG tankers, have until July 7 to submit feedback on the revisions. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
US ocean container imports tumble in May as China tariffs take hold
By Lisa Baertlein LOS ANGELES (Reuters) -U.S. seaborne imports of goods from China dropped 28.5% year-over-year in May, the sharpest decline since the pandemic, as President Donald Trump's 145% tariffs took hold, supply chain technology provider Descartes said on Monday. China is the top U.S. supplier of goods that enter through seaports, including the nation's busiest in Los Angeles/Long Beach. Domestic businesses ranging from retailer Walmart to automaker Ford depend on those goods to operate. Ports on the U.S. West Coast handle the greatest share of trade with China and experienced significant volume declines in May with Los Angeles, Long Beach and Tacoma, Washington, down 18.4%, 22.4% and 25.6%, respectively, Descartes data showed. Overall U.S. seaborne imports in May tumbled 7.2% from the year earlier to 2.18 million 20-foot equivalent units - snapping a streak of near-record increases fueled by companies frontloading goods to avoid higher duties. The United States and China agreed to a 90-day pause on punitive tit-for-tat tariffs last month. U.S. and Chinese officials met in London on Monday to defuse the high-stakes trade dispute between the world's largest economies. Port executives and shipping consultants expect volume from China to rebound during the tariff truce, albeit at a more moderate level. Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
US ocean container imports tumble in May as China tariffs take hold
By Lisa Baertlein LOS ANGELES (Reuters) -U.S. seaborne imports of goods from China dropped 28.5% year-over-year in May, the sharpest decline since the pandemic, as President Donald Trump's 145% tariffs took hold, supply chain technology provider Descartes said on Monday. China is the top U.S. supplier of goods that enter through seaports, including the nation's busiest in Los Angeles/Long Beach. Domestic businesses ranging from retailer Walmart to automaker Ford depend on those goods to operate. Ports on the U.S. West Coast handle the greatest share of trade with China and experienced significant volume declines in May with Los Angeles, Long Beach and Tacoma, Washington, down 18.4%, 22.4% and 25.6%, respectively, Descartes data showed. Overall U.S. seaborne imports in May tumbled 7.2% from the year earlier to 2.18 million 20-foot equivalent units - snapping a streak of near-record increases fueled by companies frontloading goods to avoid higher duties. The United States and China agreed to a 90-day pause on punitive tit-for-tat tariffs last month. U.S. and Chinese officials met in London on Monday to defuse the high-stakes trade dispute between the world's largest economies. Port executives and shipping consultants expect volume from China to rebound during the tariff truce, albeit at a more moderate level. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Container ship owners swamped as US-China trade detente revives demand
By Lisa Baertlein, Farah Master and Casey Hall LOS ANGELES/HONG KONG (Reuters) -Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear. U.S. importers of sneakers and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the COVID-19 pandemic. The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the United States, has ship owners scrambling to coordinate berths and adjust vessel schedules. "The demand is so high that we can only serve customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd told Reuters. "We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on Wednesday soared 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5. Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to U.S. stores, including Walmart. Lalo, for example, which sells its baby furniture online and through retailers like Target and is among the companies that gave factories the green light to move their finished orders. "We had hundreds of thousands of units waiting to ship," said Lalo co-founder Michael Weider. "These products can now get on the water." "Everybody is very busy from my company, at my friend's companies," said Richard Lee, CEO of NCL Logistics, in China's southern metropolis of Shenzhen. "They are preparing a lot of cargo, a lot of products, to be shipped immediately from China to the U.S." SECOND TSUNAMI? The shipping surge will translate into a rush of arrivals at U.S. West Coast ports in the coming weeks. Still, industry experts, including the executive director of the Port of Los Angeles - the busiest U.S. seaport and No. 1 for ocean shipments from China, do not foresee a COVID-level tsunami of cargo. Rather, they project a large, but manageable wave. On Thursday, the off-contract spot rate from Shanghai to Los Angeles shot up 16% from the prior week to $3,136 per 40-foot container, according to data from maritime consultancy Drewry. That is less than half than in April 2024, but could jump sharply on June 1 to about $6,000 per container if ship owners push through rate increases. In the early days of the pandemic, as now, cargo demand spikes overwhelmed factories and container ships, kinking supply chains. Shipping and retail experts said 90 days is not enough time for most factories to fill new orders. Fewer slots are available on cargo ships because vessel owners had been culling China-to-U.S. voyages and schedules. Now, ocean carriers are "cancelling cancellations" of sailings, Drewry said. Demand, however, is markedly different this time. Trump's second-term tariffs have weakened U.S. retail sales, homebuilding and manufacturing - key drivers of container shipments. Moreover, many U.S. companies are sitting on inventory accumulated before Trump imposed tariffs on China and other countries. And nobody knows what import duties will be when the 90-day deadline expires in August. The Trump administration confirmed to Reuters that the U.S. rate would reset to 54%, assuming no agreement is reached by the deadline. HIGH ANXIETY Many retailers are prioritizing which products to order and ship, said Jessica Dankert, vice president of supply chain for the Retail Industry Leaders Association trade group, whose members include Home Depot, Gap and Dollar General. "It's still 30% at the end of the day," said Jamie Salter, CEO of Authentic Brands Group, referring to tariffs on China. Authentic Brands owns and licenses clothing brands including Reebok, Champion, and Forever 21. Some large suppliers to Detroit's Big Three automakers told Reuters that on customers' requests, they are flying in parts from China and stockpiling them. Others declined to add to inventories, saying they lacked the space and funds to do so. A Halloween goods exporter from the city of Yiwu in China, who gave her English name, Cecilia, said tariff increases have cut total orders in half this year and warned that prospective buyers are running out of time. "If you order now, you will have an anxious wait to see if it will be too late," she said. Jimmy Zollo, CEO at Joe and Bella, sells Chinese-made clothing for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair. He placed a new order with his supplier even though the 90-day window could close before he can take delivery. "We're hopeful that a new trade agreement is implemented, and the lowered tariffs do not expire," Zollo said.
Yahoo
16-05-2025
- Business
- Yahoo
Container ship owners swamped as US-China trade detente revives demand
By Lisa Baertlein, Farah Master and Casey Hall LOS ANGELES/HONG KONG (Reuters) -Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear. U.S. importers of sneakers and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the COVID-19 pandemic. The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the United States, has ship owners scrambling to coordinate berths and adjust vessel schedules. "The demand is so high that we can only serve customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd told Reuters. "We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on Wednesday soared 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5. Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to U.S. stores, including Walmart. Lalo, for example, which sells its baby furniture online and through retailers like Target and is among the companies that gave factories the green light to move their finished orders. "We had hundreds of thousands of units waiting to ship," said Lalo co-founder Michael Weider. "These products can now get on the water." "Everybody is very busy from my company, at my friend's companies," said Richard Lee, CEO of NCL Logistics, in China's southern metropolis of Shenzhen. "They are preparing a lot of cargo, a lot of products, to be shipped immediately from China to the U.S." SECOND TSUNAMI? The shipping surge will translate into a rush of arrivals at U.S. West Coast ports in the coming weeks. Still, industry experts, including the executive director of the Port of Los Angeles - the busiest U.S. seaport and No. 1 for ocean shipments from China, do not foresee a COVID-level tsunami of cargo. Rather, they project a large, but manageable wave. On Thursday, the off-contract spot rate from Shanghai to Los Angeles shot up 16% from the prior week to $3,136 per 40-foot container, according to data from maritime consultancy Drewry. That is less than half than in April 2024, but could jump sharply on June 1 to about $6,000 per container if ship owners push through rate increases. In the early days of the pandemic, as now, cargo demand spikes overwhelmed factories and container ships, kinking supply chains. Shipping and retail experts said 90 days is not enough time for most factories to fill new orders. Fewer slots are available on cargo ships because vessel owners had been culling China-to-U.S. voyages and schedules. Now, ocean carriers are "cancelling cancellations" of sailings, Drewry said. Demand, however, is markedly different this time. Trump's second-term tariffs have weakened U.S. retail sales, homebuilding and manufacturing - key drivers of container shipments. Moreover, many U.S. companies are sitting on inventory accumulated before Trump imposed tariffs on China and other countries. And nobody knows what import duties will be when the 90-day deadline expires in August. The Trump administration confirmed to Reuters that the U.S. rate would reset to 54%, assuming no agreement is reached by the deadline. HIGH ANXIETY Many retailers are prioritizing which products to order and ship, said Jessica Dankert, vice president of supply chain for the Retail Industry Leaders Association trade group, whose members include Home Depot, Gap and Dollar General. "It's still 30% at the end of the day," said Jamie Salter, CEO of Authentic Brands Group, referring to tariffs on China. Authentic Brands owns and licenses clothing brands including Reebok, Champion, and Forever 21. Some large suppliers to Detroit's Big Three automakers told Reuters that on customers' requests, they are flying in parts from China and stockpiling them. Others declined to add to inventories, saying they lacked the space and funds to do so. A Halloween goods exporter from the city of Yiwu in China, who gave her English name, Cecilia, said tariff increases have cut total orders in half this year and warned that prospective buyers are running out of time. "If you order now, you will have an anxious wait to see if it will be too late," she said. Jimmy Zollo, CEO at Joe and Bella, sells Chinese-made clothing for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair. He placed a new order with his supplier even though the 90-day window could close before he can take delivery. "We're hopeful that a new trade agreement is implemented, and the lowered tariffs do not expire," Zollo said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
