Latest news with #EugeneSeroka
Mint
07-05-2025
- Business
- Mint
Global shipping is grinding to a standstill. It's a matter of time until Americans feel it.
There aren't shortages of goods in U.S. stores yet, but if the deterioration in global shipping is any indication, they are on the way. That could complicate the White House's pleas for Americans to be patient as trade officials rush to strike dozens of deals. Cargo has dropped, or is expected to, at major ports including those of Los Angeles; Long Beach, Calif.; and New York-New Jersey, primarily on shipments from China, which exports more than any other country to the U.S. U.S. import booking volumes have dropped 35% since late March, according to the shipping data company Vizion, including a 26% drop between the week ended April 21 and the following week. Shipments from China dropped nearly 43% in the last full week of April, the sharpest decline of the year. During April, several weeks saw China import bookings down by more than half, Vizion said. The potential impact on companies and consumers is broad. Imports of Chinese electronics, plastics, vehicles, steel, and textiles have all fallen by more than half. Perhaps just as concerning for some farmers and U.S. manufacturers is that export bookings to China have also collapsed. In the last full week of April, the number of 20-foot-equivalent containers booked to go to China fell 73% from a year earlier, the fourth consecutive week with at least a 60% drop, Vizion said. That is despite U.S. exports staying relatively strong overall. China's major imports from the U.S. include soybeans and other grains, oil and gas, and semiconductors, among other electronics components. The recent export decline is 'raising concerns for our agricultural and manufacturing partners as continued tariffs on exports begin to really take effect," said Eugene Seroka, executive director of the Port of Los Angeles, at a port board meeting at the end of April. Major trade routes have been upended by President Donald Trump's April 2 announcement of enormous tariffs on imports. Trump suspended most of the 'reciprocal" tariffs for 90 days a week later, but let tariffs against China go into effect, eventually raising them to 145% for most products. China retaliated with tariffs of its own. Now, trade officials are rushing to strike preliminary agreements with other nations before the pause is lifted in July. Americans' expectation of pain is causing political problems for Trump even though they haven't yet resulted in higher prices. About 43.5% of Americans approve of the job Trump is doing, compared to 51.8% who disapprove, according to a polling average by newsletter Strength in Numbers. That gap is about six percentage points wider than it was when Trump made the tariff announcement. White House officials have said that Americans need to 'Trust Trump" as he negotiates with trading partners. 'The administration is both delivering short-term economic relief from inflation while laying the groundwork for a long-term economic resurgence," a White House official told Barron's in an email on Tuesday, pointing to recent declines in inflation and a surge in imports in the first quarter as companies sought to avoid tariffs. Trump in the Oval Office on Tuesday told reporters that Chinese officials 'want to meet" with the U.S. to discuss trade. The problem for the White House is that shipping activity indicates that pain for consumers is on the way. In addition to reporting falling bookings, shippers have been cutting rates and capacity on major lines. Capacity between Asia and the U.S. East Coast is down 22% in April and 18% in May from what had previously been scheduled, while capacity between the Asia and the West Coast is down 20% and 12% in April and May respectively, according to the maritime research firm Drewry. 'The shipping lines are trying to balance collapsing Asia-to-U.S. demand with their capacity both by cancelling dozens of sailings and by ending entire weekly services," said Philip Damas, head of Drewry Supply Chain Advisors, in a company video on Monday. Container ships take about a month to arrive in the U.S. from Asia, and another 15 days to make it to the East Coast. Products can take another couple of weeks to make it from the port to trucks and, eventually, to store shelves. Companies have been able to see some of the trade threat coming for weeks, giving them the opportunity to stock up on inventory ahead of time to avoid the taxes. So it could be mid May before consumers start to see the full effects of Trump's April 2 announcement of heavy tariffs against China. The first effects of the tariffs are likely to show up in the consumer-price index report for May, which comes out on June 11, said analysts for TD Cowen in a research note on Monday. 'The bulk of the impact could come over the summer, as businesses and retailers start running out of low-cost inventories," the analysts said. Write to Joe Light at
Economic Times
01-05-2025
- Business
- Economic Times
As exports from China plunge, the U.S. faces an impending shortage of goods; here's what Americans should know
China exports to U.S. plunge as record-high tariffs take hold, leading to fears of product shortages across American stores. With U.S. import duties on Chinese goods now at 145%, major retailers like Walmart and Target warn shelves could soon empty. Container bookings from China have dropped as much as 60%, and shipping volumes at key ports like Los Angeles are falling fast. Small businesses say they may not survive these added costs. As trade tensions rise, the U.S. faces a critical supply chain crunch that could hit everyday items like clothing, furniture, and electronics. This is a story you can't miss. China exports to U.S. fall sharply as 145% tariffs hit. Retailers warn of product shortages and rising prices. Ports slow, bookings drop 60%, and small businesses feel the pressure. Get the full story behind this growing supply chain crisis. Tired of too many ads? Remove Ads How bad is the drop in China exports to the U.S.? What products could soon be missing from store shelves? Tired of too many ads? Remove Ads Are retailers and importers shifting away from China? What comes next for U.S. consumers and businesses? FAQs: Tired of too many ads? Remove Ads The story of China exports to the U.S. plunging due to high tariffs is now unfolding in real-time, and it's starting to shake up the shelves of American stores. As the U.S.-China trade war escalates, shipments of goods from China are dropping fast—raising alarms among U.S. retailers, logistics companies, and even economists. With tariffs now reaching record levels, supply chains are being squeezed, inventory is thinning out, and price hikes could be numbers paint a clear picture: shipments from China to the U.S. are plummeting. According to Flex port, a major supply chain company, container bookings from China have dropped by as much as 60%. The Port of Los Angeles, which handles a huge chunk of U.S. imports from Asia, reported a 10% year-over-year decline in shipments last week alone. Eugene Seroka, Executive Director of the Port of Los Angeles, said during an April 24 meeting that arrivals could drop by 35% in the next two such a steep decline? The answer lies in the sharp spike in tariffs. The U.S. now imposes up to 145% tariffs on Chinese goods, making many products more than twice as expensive as last year. China, in response, slapped 125% tariffs on U.S. exports. This tit-for-tat has made it nearly impossible for businesses to plan or afford cross-border had tried to get ahead of the situation by stockpiling goods last year, but that buffer is about to run out. Once summer hits, stores may struggle to restock shelves.U.S. ports are already seeing the early signs. At the Port of Los Angeles, five key product categories are at risk: furniture, auto parts, clothing, plastics, and footwear. These are among the most common imports from China, and they're also everyday essentials for American giants like Walmart and Target have directly warned the White House that continued tariffs could lead to inventory gaps and price hikes. 'There probably will be cases where prices will go up for consumers,' said Walmart CFO John David Rainey on CNBC. Similarly, Target CEO Brian Cornell warned that consumers should expect price increases within businesses are being hit hard too. Kristin Bear, who runs a U.S.-based lingerie brand Kilo Brava, said she might be forced to shut down. 'We'll just have to abandon the goods and close the company' if tariffs stay this high, she told CBS certainly trying. As China becomes more expensive to export from, other Asian countries like Vietnam and Thailand are seeing a boost. Flex port reports that bookings from these countries are up 5% to 10%, as manufacturers scramble to avoid the sky-high U.S. tariffs on Chinese shifting production isn't easy. It takes time, investment, and new supplier relationships. For now, many importers are simply pausing their shipments. A Freightos survey of 195 small businesses found that 33% have already paused imports to reassess their costs are also tumbling. Ocean container rates dropped from $8,100 in July 2024 to around $2,327 for a 40-foot container, according to Freightos. That's largely because ships are sailing half-empty, with fewer Chinese goods being loaded due to the this trend continues, we could see COVID-like shortages in stores, according to Torsten Slok, Chief Economist at Apollo Global Management. He warned that 'empty shelves in U.S. stores in a few weeks' are a real possibility. That includes not only finished goods but also intermediate goods used by U.S. now, it's a waiting game. Importers, manufacturers, and retailers are all holding their breath, hoping for a change in tariff policy. But unless something shifts soon, China exports to the U.S. may remain stuck in a downward spiral, dragging product availability—and maybe even some businesses—down with U.S. tariffs up to 145% have made Chinese goods too expensive for like clothing, furniture, auto parts, and electronics may face shortages.
Time of India
30-04-2025
- Business
- Time of India
As exports from China plunge, the U.S. faces an impending shortage of goods; here's what Americans should know
China exports to U.S. plunge as tariffs hit hard, raising fears of product shortages- The story of China exports to the U.S. plunging due to high tariffs is now unfolding in real-time, and it's starting to shake up the shelves of American stores. As the U.S.-China trade war escalates, shipments of goods from China are dropping fast—raising alarms among U.S. retailers, logistics companies, and even economists. With tariffs now reaching record levels, supply chains are being squeezed, inventory is thinning out, and price hikes could be next. #Pahalgam Terrorist Attack A Chinese shadow falls on Pahalgam terror attack case probe How India can use water to pressure Pakistan Buzzkill: How India can dissolve the Pakistan problem, not just swat it How bad is the drop in China exports to the U.S.? The numbers paint a clear picture: shipments from China to the U.S. are plummeting. According to Flex port, a major supply chain company, container bookings from China have dropped by as much as 60%. The Port of Los Angeles, which handles a huge chunk of U.S. imports from Asia, reported a 10% year-over-year decline in shipments last week alone. Eugene Seroka, Executive Director of the Port of Los Angeles, said during an April 24 meeting that arrivals could drop by 35% in the next two weeks. Why such a steep decline? The answer lies in the sharp spike in tariffs. The U.S. now imposes up to 145% tariffs on Chinese goods, making many products more than twice as expensive as last year. China, in response, slapped 125% tariffs on U.S. exports. This tit-for-tat has made it nearly impossible for businesses to plan or afford cross-border trade. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jawa Barat: AI guru Andrew Ng recommends: Read These 5 Books And Turn Your Life Aroun... Blinkist: Andrew Ng's Reading List Undo Retailers had tried to get ahead of the situation by stockpiling goods last year, but that buffer is about to run out. Once summer hits, stores may struggle to restock shelves. What products could soon be missing from store shelves? U.S. ports are already seeing the early signs. At the Port of Los Angeles, five key product categories are at risk: furniture, auto parts, clothing, plastics, and footwear. These are among the most common imports from China, and they're also everyday essentials for American households. Live Events Retail giants like Walmart and Target have directly warned the White House that continued tariffs could lead to inventory gaps and price hikes. 'There probably will be cases where prices will go up for consumers,' said Walmart CFO John David Rainey on CNBC. Similarly, Target CEO Brian Cornell warned that consumers should expect price increases within days. Small businesses are being hit hard too. Kristin Bear, who runs a U.S.-based lingerie brand Kilo Brava, said she might be forced to shut down. 'We'll just have to abandon the goods and close the company' if tariffs stay this high, she told CBS MoneyWatch. Are retailers and importers shifting away from China? They're certainly trying. As China becomes more expensive to export from, other Asian countries like Vietnam and Thailand are seeing a boost. Flex port reports that bookings from these countries are up 5% to 10%, as manufacturers scramble to avoid the sky-high U.S. tariffs on Chinese goods. But shifting production isn't easy. It takes time, investment, and new supplier relationships. For now, many importers are simply pausing their shipments. A Freightos survey of 195 small businesses found that 33% have already paused imports to reassess their strategy. Shipping costs are also tumbling. Ocean container rates dropped from $8,100 in July 2024 to around $2,327 for a 40-foot container, according to Freightos. That's largely because ships are sailing half-empty, with fewer Chinese goods being loaded due to the tariffs. What comes next for U.S. consumers and businesses? If this trend continues, we could see COVID-like shortages in stores, according to Torsten Slok, Chief Economist at Apollo Global Management. He warned that 'empty shelves in U.S. stores in a few weeks' are a real possibility. That includes not only finished goods but also intermediate goods used by U.S. manufacturers. For now, it's a waiting game. Importers, manufacturers, and retailers are all holding their breath, hoping for a change in tariff policy. But unless something shifts soon, China exports to the U.S. may remain stuck in a downward spiral, dragging product availability—and maybe even some businesses—down with them. FAQs: What is causing the drop in China exports to the U.S.? High U.S. tariffs up to 145% have made Chinese goods too expensive for importers. Which products are at risk due to falling China exports? Items like clothing, furniture, auto parts, and electronics may face shortages.
Bloomberg
03-04-2025
- Business
- Bloomberg
LA Port's Seroka On Tariffs Impact on Trade Volumes
Eugene Seroka, Executive Director at the Port of Los Angeles says importers have been bringing cargo into the U.S. early as a hedge against tariffs. He speaks with Haidi Stroud-Watts on "Insight with Haslinda Amin." (Source: Bloomberg)
