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Port of Shanghai Surpasses 5 Million-TEU Monthly Throughput Ahead of Trump Tariffs
Port of Shanghai Surpasses 5 Million-TEU Monthly Throughput Ahead of Trump Tariffs

Yahoo

time07-02-2025

  • Business
  • Yahoo

Port of Shanghai Surpasses 5 Million-TEU Monthly Throughput Ahead of Trump Tariffs

After China closed out 2024 with record export levels as U.S. shippers scrambled to secure cargo ahead of President Donald Trump's inauguration, the country's largest port rang in the new year keeping in line with the trend. The Port of Shanghai reached its own one-month record in January, handling 5.1 million 20-foot equivalent units (TEUs) for the first time in its history. The port isn't just the largest gateway in China—it's the most trafficked worldwide, already handling a record 51.5 million TEUs in 2024. More from Sourcing Journal Trump's America First Trade Policy: Tariff Risks Are Rising Trump's Trade Policies Could Spur Modest Stagflation in US Economy Pre-Lunar New Year Rush Escalates Congestion Across Chinese Ports 'Ports are the barometer of foreign trade,' said the port's operator, Shanghai International Port Group, in a statement. 'The performance of Shanghai Port in the first month of the new year reflects the active foreign trade and strong resilience of our country's economy.' In the statement, the group said it would continue to make efforts in digitization and emissions-friendly initiatives, all while improving port operation efficiency and service quality and continuing its position as a leading international hub. The excessive throughput can be attributed to two major reasons: one being the aforementioned return of President Trump to the White House and the 10 percent additional tariffs that he officially hit Chinese goods with on Feb. 4. Secondly, Lunar New Year began on Jan. 29, marking the annual rush of product out of China before the nation's factories shut down. Combine both of those factors and you get a nearly 300,000-TEU increase over the second highest throughput ever at 4.8 million TEUs in July 2024. 'With factories ramping up production, there is a noticeable spike in export volumes, particularly in sectors like electronics, textiles and automotive parts,' said China-based Gerudo Logistics in a Wednesday update. 'This surge is leading to tight capacity, especially on popular trade lanes to Europe and North America.' Gerudo also warned of congestion at major ports, including Shanghai, as well as China's other top maritime hubs including Ningbo and Shenzhen, as backlogs from the holiday period are cleared. As of Monday, 9 percent of the global container shipping fleet is still docked or waiting at berth at a port, totaling 2.83 million TEUs, according to data from container shipping analysis firm Linerlytica. On a global scale, the number was an improvement from the week prior, when 10.5 percent of vessel capacity—or 3.3 million TEUs—awaited port anchorages worldwide. Congestion has been a problem at both the Chinese ports, as well as adjacent southeast Asian ports like Singapore throughout 2024 amid global shipping slowdowns due to the Red Sea crisis that lasted throughout the year. Of 88 analyzed ports by supply chain visibility provider Beacon, 60 (68 percent) recorded longer average vessel anchor times in 2024 compared to 2023. It's possible that the ports like Shanghai could clog even further as the tariffs go into effect, especially since the same legislation that levied those duties also put an end to the Section 321 de minimis provision for low-value goods entering the U.S. Since e-commerce companies with China-based supply chains like Shein and Temu are now unable to send tax-free individual packages directly to the consumer via air freight, a move to ocean freight isn't out of the question if they want a cheaper shipping option than flying in bulk. As the Port of Shanghai continues to see a flood of containers growth, U.S. ports are showing some concern over President Trump's executive order to freeze all funding provided in the Bipartisan Infrastructure Law signed into legislation by President Joe Biden in November 2021. That law authorized $1.2 trillion for transportation and infrastructure spending, and provided $2.25 billion for the Port Infrastructure Development Program through 2026, with $450 million initially made available for fiscal year 2025. 'Our entire industry is very alarmed and concerned about the pause on grant funding,' Paul Anderson, president and CEO of Port Tampa Bay, told lawmakers at a House Transportation and Infrastructure maritime subcommittee hearing on Wednesday. Anderson, who was once the chairman of the American Association of Port Authorities and a former Federal Maritime Commissioner, said representatives from ports nationwide called an emergency meeting due to their concerns. 'There's a lot of uncertainty, and [the pause] will be very difficult and burdensome for ports that have had strategic planning involving the use of federal grants,' Anderson said. But he also acknowledged that 'we're very early on' in the new administration. 'I think once this is reevaluated and looked at, pragmatism will win the day.

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