How will Trump's reciprocal tariffs affect Chinese shipping lines?
Chinese shipping lines and container manufacturers are facing further challenges and geopolitical uncertainties after US President Donald Trump rolled out a plan on Thursday to levy reciprocal tariffs on America's trade partners.
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.
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