Latest news with #China-Made
Yahoo
28-05-2025
- Business
- Yahoo
CMA CGM's $600M Vietnam Port Project Reflects ‘Sharp' Container Demand
CMA CGM is strengthening its presence in Vietnam as the southeast Asian country stands to gain a more pivotal role in the global supply chain. The container shipping giant is investing $600 million to build a deep-water terminal complex at Hai Phong Port, which would be CMA CGM's first docking facility in one of Vietnam's northern ports. More from Sourcing Journal BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports Vietnam Completes Second Round of Trade Talks With U.S. US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in CMA CGM has partnered with Saigon Newport Corporation to develop the project, which will have a capacity of 1.9 million 20-foot equivalent units (TEUs) and is scheduled to open in 2028. The agreement covers the design, construction and operation of two terminals in Hai Phong's Lach Huyen area. Vietnam has had more of a spotlight on its role in the apparel supply chain, both as the country seeks to negotiate its way out of a possible 46-percent tariff imposed by President Donald Trump, as well as handling an influx of goods from China. With imports from China escalating 22.5 percent in April and exports to the U.S. growing 34 percent, Vietnam's position is likely to carry more intrigue for logistics and shipping companies seeking to expand into new markets. 'The project is designed to meet the sharp increase in container volumes in northern Vietnam—one of Southeast Asia's fastest-growing economic zones,' CMA CGM said in a statement. 'This partnership will enable CMA CGM to secure long-term capacity in a region that has become central to Asian supply chains due to its rapid industrial and logistics development.' The facility will complement the two other terminals owned by CMA CGM: the Gemalink terminal in Cai Mep and the Vietnam International Container Terminal in Ho Chi Minh City. The ocean carrier operates 29 weekly services across seven ports in the country, as well as the company's intermodal network powered by subsidiary Ceva Logistics. Vietnam is also the backdrop of a zero-emission project CMA CGM is engaging in with partner Nike. By 2026, CMA CGM will launch a 100-percent electric barge, or 'e barge,' that will transport Nike goods along southern Vietnam's Dong Nai River between the Cai Mep and Binh Duong ports. On Tuesday, Vietnam's Deputy Prime Minister Tran Hong Ha held a meeting with CMA CGM CEO Rodolphe Saadé, according to a report from state-run Vietnam News Agency (VNA), in which the representative encouraged the French shipping tycoon to lead the way in green maritime transformation. Recently, CMA CGM has shown little hesitation to throw around capital to expand its influence internationally. In March, Saadé said the company was committing $20 billion to investing in logistics, shipbuilding and supply chain upgrades in the U.S. Under that commitment, the carrier will triple its number of U.S.-flagged ships, as the Trump administration and bipartisan lawmakers have pushed for a reinvigoration of American shipbuilding. Last month, Ceva Logistics acquired Turkish contract logistics and trucking firm Borusan Tedarik for roughly $440 million. That deal, which still needs approval from regulators, includes Borusan Tedarik's subsidiaries in Germany, Bulgaria, Hong Kong and China. Borusan Tedarik operates the largest port in Turkey's manufacturing hub of Gemlik, with an annual capacity to handle 1,500 ships and around 400,000 TEUs. The planned acquisitions would nearly double Ceva's warehousing and distribution footprint in Turkey, adding around 6.1 million square feet to its existing 6.7 million square feet of space. In addition, the combined ground transport activities would make nearly 1 million domestic transports per year, while Ceva's ocean freight capacity in the country set to increase by 25 percent. Last month, CMA CGM also completed the acquisition of cargo airline Air Belgium, including four freighter planes, as the company further builds out its air cargo ambitions. The Air Belgium brand will be preserved as part of the CMA CGM air cargo division launched in 2021, alongside 124 direct jobs out of roughly 400, including 72 pilot roles. Currently, the division operates regular services out of Paris with two Boeing 777F aircraft to Hong Kong and Shanghai and one Airbus A330F to Zhengzhou. CMA CGM also established another air freight hub in Chicago that hosts two Boeing 777F aircraft operated by Atlas Air on routes to Shanghai, Hong Kong and Seoul. CMA CGM operates an air cargo fleet of nine aircraft, including the Air Belgium jets: four Boeing 777Fs, three Airbus A330Fs and two Boeing 747Fs. The fleet will soon be reinforced by an additional Boeing 777F and further expanded from 2027 onward with the arrival of eight Airbus A350Fs. 'It immediately strengthens our air capacity while addressing current logistical challenges,' Damien Mazaudier, executive vice president of the air division at CMA CGM Group, in a statement. 'By preserving skilled jobs and accelerating the development of our network, this operation demonstrates our commitment to our customers and our ability to anticipate market evolutions.' Air Belgium's passenger operations will dissolve upon the sale. 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Yahoo
23-05-2025
- Business
- Yahoo
BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on India to allow for a three-month reprieve on its abrupt ban on the entry of Bangladeshi garment exports via its land ports. The association is urging Bangladesh's interim government to send a formal letter to the Indian government on their behalf, which would request for a three-month 'notification period' that would give ample time to clear the pending backlog of garments that are already set to be exported to India. More from Sourcing Journal Bangladesh, US Engage in Free Trade Agreement Talks US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in India Ends Land Port Entry for Bangladeshi Garment Imports Many India-bound shipments have been waiting to be unloaded at the land ports since Saturday, when the restrictions were put in place. In an interview with Bangladesh publication The Daily Star, Asif Ashraf, a former vice president of the BGMEA, said exporters were not prepared for such a sudden ban, and are now concerned about financial impacts to their business on the shipping delays. On Tuesday, Bangladesh's commerce ministry held an inter-ministerial meeting in Dhaka with stakeholders and government officials to discuss a response to India's restrictions. 'We will not take any retaliatory steps. They've taken this step, and we will engage with them,' Commerce Secretary Mahbubur Rahman told reporters after the meeting. Rahman mentioned that a meeting at the secretary level between the two countries is being considered to resolve the issue. 'We will point out that not only Bangladeshi businesses are being affected, Indian businesses will also suffer. So, let's sit together and find a solution,' said Rahman. 'We have an established secretariat-level forum with India. Last week, we sent a letter requesting a meeting. Once we receive a response, we'll know when it can be held.' According to the BGMEA, readymade garment (RMG) exports to India reached $563 million in the first 10 months of the current fiscal year. The association says 93 percent of the garments shipped from Bangladesh to India goes through land ports. The move to block entry to RMGs, as well as limit other exports like processed foods, plastic goods and wooden furniture, will impact 42 percent of India's total inbound trade from Bangladesh, according to a report from New Delhi-based Global Trade Research Initiative. The land port ban was an apparent escalation of a series of supply chain restrictions the countries have placed on each other in recent months. In February, India implemented a 20 percent import tariff on nine varieties of knitted fabrics from Bangladesh. Two months later, the country revoked Bangladesh's access to its transshipment services, which prevents Bangladeshi exporters from shipping cargo via Indian land borders and customs stations. That service, first established in 2020, allowed Bangladeshi businesses to use Indian airports and seaports to send goods to third countries. Bangladesh has since opened a new air cargo hub at one of its major airports to pick up the slack. Bangladesh also put up some of its own supply chain barriers, clamping down on foreign imports of yarns via its land ports. Yarns can still be imported via seaports and airports, but textile mills had claimed the land ports didn't have the required infrastructure to properly vet raw materials. According to the Bangladesh Textile Mills Association, 95 percent of yarn imports come from India. In April, other imports from India including rice were restricted through the land ports, while goods like paper, tobacco and powdered milk got banned outright. Bangladesh's tit-for-tat with India comes as the south Asian country still is trying to maneuver through trade negotiations with the U.S. after the Trump administration's imposition of country-specific tariffs on April 2. Both countries agreed in principle to start Free Trade Agreement (FTA) talks this week, Rahman said. Currently, Bangladesh has a 10-percent tariff placed on all goods it exports to the U.S., but that total could hike to 37 percent—or nearly 53 percent on apparel—if a new deal isn't reached by July 9. As part of a potential deal, Bangladesh's government is considering removing import tariffs on about 100 products it brings in from the U.S. In accordance with World Trade Organization rules, the removal would apply to all countries Bangladesh imports from. These products reportedly range from raw materials for readymade garments, as well as man-made fibers and wool. They would also include items like machinery, effluent treatment plants, dialysis filters, fire extinguishers and certain arms, according to a report from Bangladesh publication The Business Standard. Officials from the National Board of Revenue (NBR) told the publication that the plans were discussed during a meeting with Chief Adviser Muhammad Yunus ahead of the upcoming fiscal year budget. In 2024, Bangladesh imported goods worth $2.2 billion from the U.S., while exporting $8.4 billion, making the U.S. Bangladesh's largest export market.
Yahoo
22-05-2025
- Business
- Yahoo
Target and TJX Take Diverging Paths Through Tariff Turbulence—Speed vs. Flexibility
Although Target's 2025 outlook to a hit due to uncertainty surrounding tariffs and consumer spending, the mass merchant is keeping its foot on the gas when it comes to delivery. The retail giant's average click-to-deliver speed was nearly 20 percent faster than the year prior, according to Michael Fiddelke, chief operating officer. More from Sourcing Journal LA Port Director Predicts 'Muted' Peak Season Despite Expected Cargo Surge Target Challenged by Tariffs, Weak Q1 Sales and Profit Miss US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in That number doubles the 11 percent faster delivery speeds experienced throughout 2024, in yet another example of national retailers cutting down delivery times on e-commerce orders. Walmart's U.S. operation nearly doubled the number of deliveries it made within a three-hour window from the year prior, the company revealed this month. Fiddelke said in a Wednesday earnings call that faster delivery was one of many factors that contributed to the company's comparable digital sales growth of 4.7 percent. The company touted its same-day delivery capabilities, with the option seeing 36 percent year-over-year growth in the company's first quarter. The growth is an acceleration from the 25 percent annual growth Target's same-day alternative experienced in the prior quarter. Target also saw 'healthy growth' in the Drive Up curbside pickup option, which now accounts for nearly half the retailer's total digital sales. 'We fulfilled more than 70 percent of all Q1 digital orders within a day,' Fiddelke said, also noting that Shipt's driver network fulfilled 24 percent more packages year over year. The talk of same-day services came two days after the company's announcement that it would remove same-day delivery price markups from more than 100 retailers and grocers through the Target Circle 360 paid membership program. Previously, Circle 360 customers would have to pay more for same-day deliveries ordered from Target's network of retailers selling on the Shipt Marketplace, including CVS, PetSmart and Lowe's. The successful delivery growth at Target couldn't save the company from posting largely disappointing first-quarter financial numbers. Net sales dipped 2.8 percent to $23.8 billion in the quarter, reflecting a merchandise sales decrease of 3.1 percent. Total transactions declined 2.4 percent, with same-store sales dropping 3.8 percent. Net income increased 10 percent to $1 billion. But the downward adjustment of its full-year guidance tells a bigger story. Target now expects a low-single-digit decline in sales this fiscal year, compared with a previous forecast of net sales growth of about 1 percent. The retailer said it expects adjusted earnings per share, excluding gains from litigation settlements, to be about $7 to $9, compared with the prior anticipated range of $8.80 to $9.80. CEO Brian Cornell wasn't as overt about tariffs resulting in higher prices as his counterpart at Walmart, Doug McMillon, but he acknowledged it was an option on the table, calling price 'the very last resort.' Cornell said 'adjusting order timing—and where necessary—prices' would be levers to pull to minimize tariff headwinds, alongside negotiating with vendor partners, reevaluating assortment decisions and changing country of production. China is the single largest source of merchandise Target imports, and it accounts for 30 percent of the goods the retailer sells within its private brands. TJX, the off-price retailer operating the TJ Maxx and Marshall's brands, is more confident in navigating the tariff-heavy environment. The company maintained its full-year sales and earnings outlook, with CEO Ernie Hermann saying that TJX expects to offset tariff pressures on both direct and indirect imports. 'We believe we can do this primarily through our buying process and our ability to adjust our ticket while maintaining our value gap and our ability to diversify our sourcing,' said Hermann in an earnings call Wednesday. Hermann said the retailer could potentially see less inventory availability in some categories if vendor wholesalers or traditional retailers cut back on shipments, but the buying team would flow to adjacent value-focused categories in such a scenario. The CEO also indicated that price changes were on the table, but that TJX would ensure it maintains its gap between its prices and those from traditional retailers. 'We believe there's opportunity for us to buy better. If retails do move out there, we will adjust our retails to preserve that gap. That could mean [prices] go up on certain items. If somebody actually adjusts—this is always the case—if they adjusted a retail down, we would do that as well.' China, which had initially been slapped with the highest tariff rate of all countries at 145 percent, has a smaller footprint in TJX's supply chains than many retailers. Hermann said that less than 10 percent of the merchandise that retailer purchases for its U.S. businesses is directly imported from China. Hermann calls that a 'very brand-driven' decision to have 'eclectic, well-balanced' mixes and assortments, rather than any intentional avoidance of the Chinese market. 'We don't swing the pendulum on those places,' Hermann said. 'So that is not something you'd see us play with a lot because obviously, we can move sourcing countries on our direct imports around and we could have China be less of a percentage. But we tend to hover around that 10-percent number.' With that in mind, despite the recent acceleration in freight rates, in which containers from Shanghai to U.S. West Coast ports soared as much as 32 percent in the week ahead of May 16, TJX hasn't felt much of the effect given its small concentration of ocean freight. 'Our ocean freight rates are approximately 20 percent to 25 percent of our overall freight, so we're not as impacted on the ocean freight side,' said TJX chief financial officer John Klinger. 'We have not seen, to the point, costs go up. But again, it's early. The tariffs were just lowered.' As far as China's impact on TJX businesses overseas like U.K. banner T.K. Maxx, Klinger said he has 'nothing significant' regarding shipments out of the country being redirected to Europe instead of the U.S.
Yahoo
21-05-2025
- Business
- Yahoo
NRF VP: Retailers ‘Need Clarity' on New China Tariff Deadline
Although the Trump administration's 90-day rollback of tariffs on Chinese imports has given retailers some breathing room to bring more product into the U.S., retailers remain largely in the dark over how to react once the Aug. 14 deadline looms. Due to the tariff truce, duties on most goods from China are now at 30 percent, well below the 145 percent total the tariffs escalated to ahead of the détente. More from Sourcing Journal US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in Walmart Says It Will Increase Prices on Some Goods Because of Tariffs Hapag-Lloyd: China-to-US Volumes Surge 50% Since Tariff Rollback 'We still need clarity from the administration on what happens post-Aug. 14,' said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation (NRF). 'I don't think they've figured it out yet, to be honest.' In a webinar hosted by freight booking platform Freightos Monday morning, Gold noted that the question remains whether the tariffs will increase again to 145 percent if a deal is not made—which he believes is not likely. But he didn't rule out the possibility of an 80 percent or 100 percent tariff based on President Donald Trump's prior communications on Truth Social, as well as numbers initially touted during his election campaign. The China deadline isn't the only one on U.S. retailers' minds, with the original 90-day pause of country-specific reciprocal tariffs ending on July 9. 'Right now, you're going to see more front-loading as folks are trying to rush between those two different expiration dates. The front-loading we've seen to date does not include the holiday merchandise for later in the year, because the order is typically placed now or last month, and that doesn't start coming in until late summer,' Gold said. Gold predicts a 'ramp up' in the next few months by retailers looking to get holiday merchandise into the U.S., further pulling forward the traditional August-to-October peak shipping season. 'A lot of retailers are going to try and beat that Aug. 14 date from China not knowing what's going to happen,' Gold said. 'Retailers don't want to get caught with product, and then the tariff goes back up to 80 or 100 percent, or higher.' During the webinar, Gold observed the similarities within the current environment on the trans-Pacific trade lane as that of during the Covid-19 pandemic. The decline in capacity due to blank sailings and vessel swaps from when carriers adapted lower demand had already begun to reverse once the 90-day rollback was initiated. 'You're already starting to see the peak season surcharges starting to come into effect and see increases in freight rates,' said Gold. 'It's great that we got the tariff rate down, but now you're seeing an increase in shipping costs. Again, retailers are going to pay one way or the other, and those costs are going to get passed along, unfortunately.' Judah Levine, head of research at Freightos, noted his company has seen demand already 'pick up sharply,' which could make it more difficult for businesses to secure ocean freight space in the short term. Exacerbating that concern, fewer empty containers than usual are headed to China from the U.S. due to the previous falloff in trans-Pacific volumes. 'Those volumes are rebounding alongside vessels and equipment that are now out of place and are being shifted back into place, but will take some time,' said Levine. 'The quick restart could also mean a big bump in the number of vessels and container volumes that are going to arrive at U.S. ports in a few weeks. So taken together, shippers could face some difficulty securing space and some congestion and delays the next few weeks, mostly with origins in East Asia and the U.S.' Congestion and equipment shortages would likely subside as vessels and equipment moved back into place, making them less of a long-term concern than the future of the tariffs. While one of the major purported long-term goals of the tariffs was to incentivize reshoring or nearshoring, much of that has yet to take hold, Gold said there hasn't any clear trend that new U.S. manufacturing activity has been spurred on. 'You've seen a lot of announcements from a number of companies about making investments here in the United States, but that's going to take time before those investments actually take effect,' Gold said. 'It's limited, and all the uncertainty over the tariffs makes it very difficult for folks to make those decisions when tariffs can change at a moment's notice.' Gold noted that a manufacturing renaissance would still rely on imported inputs and components, which themselves are subject to tariffs. Sign in to access your portfolio
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.
