Latest news with #HabbenJansen
Economic Times
26-05-2025
- Business
- Economic Times
Shipping bottlenecks in Europe send a warning signal to US, Asia
iStock Compounding the constraints is US President Donald Trump's temporary rollback on 145% tariffs on Chinese imports, which has pulled forward shipping demand between the world's largest economies. Port congestion is worsening at key gateways in northern Europe and other hubs, according to a new report which suggests trade wars could spread maritime disruptions to Asia and the US and push up shipping times for berth space jumped 77% in Bremerhaven, Germany, between late March and mid-May, according to the report Friday from Drewry, a maritime consultancy in London. The delays rose 37% in Antwerp and 49% in Hamburg over the same stretch, with Rotterdam and the UK's Felixstowe also showing longer waits. Labor shortages and low water levels on the Rhine River are the main culprits, hindering barge traffic to and from inland locations. Compounding the constraints is US President Donald Trump's temporary rollback on 145% tariffs on Chinese imports, which has pulled forward shipping demand between the world's largest economies.'Port delays are stretching transit times, disrupting inventory planning and pushing shippers to carry extra stock,' Drewry said. 'Adding to the pressure, the transpacific eastbound trade is showing signs of an early peak season, fueled by a 90-day pause in US–China tariffs, set to expire on Aug. 14.'Similar patterns are emerging in Shenzhen, China, as well as Los Angeles and New York, 'where the number of container ships awaiting berth has been increasing since' late-April, it Habben Jansen, chief executive officer of Hamburg-based Hapag-Lloyd AG, said on a webinar last week that, although he's seen recent signs of improvement at European ports, he expects it will take 'another six to eight weeks before we have that under control.' Still, Torsten Slok, Apollo Management's chief economist, pointed out in a note on Sunday that the US-China tariff truce reached almost two weeks ago hasn't yet unleashed a surge in ships across the Pacific.'This raises the question: Are 30% tariffs on China still too high? Or are US companies simply waiting to see if tariffs will drop further before ramping up shipments?' Slok wrote. US tariffs – combined with sudden threats and truces – make it difficult for importers and exporters to calibrate their orders, causing unseasonal swings in demand. For shipping lines, those translate into delays and higher costs requiring freight rate hikes. The latest blow to visibility came Friday, when Trump threatened to hit the European Union with a 50% tariff on June 1, a move that could roil transatlantic trade.'The additional policy uncertainty will be a deadweight cost to global activity by adding risks to decisions on expenditures,' Oxford Economics said in a research note on Saturday. Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable given their ratios of US exports to GDP, it Economics said in a research note Friday that 'additional tariffs of 50% would likely reduce EU exports to the US for all products facing reciprocal duties to near zero — cutting total EU exports to the US by more than half.'Mounting uncertainty about whether Trump would follow through on such a big trade threat or postpone it like he did with China is adding to shipping including MSC Mediterranean Shipping Co., the world's largest container line, had already announced general rate increases and peak season surcharges, starting in June, for cargo from the weeks ahead, those are likely to boost spot rates for seaborne freight, the cost of which is still underpinned by geopolitical ships are still largely avoiding the Red Sea, where Yemen-based Houthis started attacking vessels in late 2023, and sailing around southern Africa to ferry goods on routes that connect Asia, Europe and the the webinar, Habben Jansen said it's still not safe to traverse the Red Sea and indicated that any eventual restoration of regular journeys through the Suez Canal would have to be gradual, perhaps taking several months, to avoid flooding ports with vessel traffic.'If we would from one day to another shift those ships back through Suez, we would create massive congestion in many of the ports,' Habben Jansen said. 'So our approach would be that if we can do it, that we do it over a longer period of time so that the ports do not collapse, because that's in nobody's interest.'
Time of India
26-05-2025
- Business
- Time of India
Shipping bottlenecks in Europe send a warning signal to US, Asia
Bloomberg Live Events EU-US Dispute Avoiding 'Massive Congestion' Port congestion is worsening at key gateways in northern Europe and other hubs, according to a new report which suggests trade wars could spread maritime disruptions to Asia and the US and push up shipping times for berth space jumped 77% in Bremerhaven, Germany, between late March and mid-May, according to the report Friday from Drewry, a maritime consultancy in London. The delays rose 37% in Antwerp and 49% in Hamburg over the same stretch, with Rotterdam and the UK's Felixstowe also showing longer shortages and low water levels on the Rhine River are the main culprits, hindering barge traffic to and from inland locations. Compounding the constraints is US President Donald Trump's temporary rollback on 145% tariffs on Chinese imports, which has pulled forward shipping demand between the world's largest economies.'Port delays are stretching transit times, disrupting inventory planning and pushing shippers to carry extra stock,' Drewry said. 'Adding to the pressure, the transpacific eastbound trade is showing signs of an early peak season, fueled by a 90-day pause in US–China tariffs, set to expire on Aug. 14.'Similar patterns are emerging in Shenzhen, China, as well as Los Angeles and New York, 'where the number of container ships awaiting berth has been increasing since' late-April, it Habben Jansen, chief executive officer of Hamburg-based Hapag-Lloyd AG, said on a webinar last week that, although he's seen recent signs of improvement at European ports, he expects it will take 'another six to eight weeks before we have that under control.'Still, Torsten Slok, Apollo Management's chief economist, pointed out in a note on Sunday that the US-China tariff truce reached almost two weeks ago hasn't yet unleashed a surge in ships across the Pacific.'This raises the question: Are 30% tariffs on China still too high? Or are US companies simply waiting to see if tariffs will drop further before ramping up shipments?' Slok tariffs – combined with sudden threats and truces – make it difficult for importers and exporters to calibrate their orders, causing unseasonal swings in demand. For shipping lines, those translate into delays and higher costs requiring freight rate latest blow to visibility came Friday, when Trump threatened to hit the European Union with a 50% tariff on June 1, a move that could roil transatlantic trade.'The additional policy uncertainty will be a deadweight cost to global activity by adding risks to decisions on expenditures,' Oxford Economics said in a research note on Saturday. Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable given their ratios of US exports to GDP, it Economics said in a research note Friday that 'additional tariffs of 50% would likely reduce EU exports to the US for all products facing reciprocal duties to near zero — cutting total EU exports to the US by more than half.'Mounting uncertainty about whether Trump would follow through on such a big trade threat or postpone it like he did with China is adding to shipping including MSC Mediterranean Shipping Co., the world's largest container line, had already announced general rate increases and peak season surcharges, starting in June, for cargo from the weeks ahead, those are likely to boost spot rates for seaborne freight, the cost of which is still underpinned by geopolitical ships are still largely avoiding the Red Sea, where Yemen-based Houthis started attacking vessels in late 2023, and sailing around southern Africa to ferry goods on routes that connect Asia, Europe and the the webinar, Habben Jansen said it's still not safe to traverse the Red Sea and indicated that any eventual restoration of regular journeys through the Suez Canal would have to be gradual, perhaps taking several months, to avoid flooding ports with vessel traffic.'If we would from one day to another shift those ships back through Suez, we would create massive congestion in many of the ports,' Habben Jansen said. 'So our approach would be that if we can do it, that we do it over a longer period of time so that the ports do not collapse, because that's in nobody's interest.'
Yahoo
15-05-2025
- Business
- Yahoo
Bookings for cargo shipping spiked this week — but it may not last, a shipping CEO said
American importers are rushing to ship Chinese goods after the US's 90-day tariff truce with China. Bookings for China-to-US cargo surged after the tariff rollback agreement, said Hapag-Lloyd's CEO. However, the surge may be short-lived and would depend on future trade talks, said the CEO. American importers have rushed to load up on Chinese goods this week after the US and China agreed to a temporary truce on tariffs, but a top shipping executive warned that the rebound may not last. Bookings for cargo capacity from China to the US have shot up this week after the two economic giants agreed to roll back tariffs, said Rolf Habben Jansen, the CEO of Hapag-Lloyd. The company is the world's fifth-largest shipping firm by capacity. "We have seen over the last couple of days that bookings have indeed been up more than 50% compared to what we saw the last four weeks," the CEO said during the company's first-quarter earnings call on Wednesday. Habben Jansen said the rebound came after China-to-US container ship bookings crashed 20-30% in the last few weeks as Trump's 145% tariff on Chinese goods took hold. This week's rapid turnaround followed the US slashing the combined tariff rate on Chinese goods to 30% for 90 days following the US and China's trade talks in Switzerland over the weekend. The new tariff rate took effect on Wednesday. San Francisco-based container-tracking software provider Vizion said on Wednesday that US-China container bookings surged 277% in the week from May 5. "We are definitely starting to see the bookings return now that this temporary pause is in effect," wrote Ben Tracy, Vizion's vice-president of strategic business development, in a LinkedIn post. Hapag-Lloyd's Habben Jansen said it was unclear if the current booking euphoria could hold. "Right now, we see a surge that could be very short-lived, but it could also last for 60 or 90 days, very much dependent on what comes out of those trade talks between China and the US," Habben Jansen said. Last week, shipping giant Maersk said customers reacted "very, very fast on canceling orders or stopping orders" following Trump's tariff announcement on "Liberation Day." Container volumes between the US and China plunged 30% to 40% in April, said Maersk's CEO, Vincent Clerc. Earlier this month, logistics experts and shipping specialists told Business Insider that the US could face price hikes and empty shelves within weeks as Trump's tariffs hit supply chains. Read the original article on Business Insider
Business Insider
15-05-2025
- Business
- Business Insider
Bookings for cargo shipping spiked this week — but it may not last, a shipping CEO said
American importers have rushed to load up on Chinese goods this week after the US and China agreed to a temporary truce on tariffs, but a top shipping executive warned that the rebound may not last. Bookings for cargo capacity from China to the US have shot up this week after the two economic giants agreed to roll back tariffs, said Rolf Habben Jansen, the CEO of Hapag-Lloyd. The company is the world's fifth-largest shipping firm by capacity. "We have seen over the last couple of days that bookings have indeed been up more than 50% compared to what we saw the last four weeks," the CEO said during the company's first-quarter earnings call on Wednesday. Habben Jansen said the rebound came after China-to-US container ship bookings crashed 20-30% in the last few weeks as Trump's 145% tariff on Chinese goods took hold. This week's rapid turnaround followed the US slashing the combined tariff rate on Chinese goods to 30% for 90 days following the US and China's trade talks in Switzerland over the weekend. The new tariff rate took effect on Wednesday. San Francisco-based container-tracking software provider Vizion said on Wednesday that US-China container bookings surged 277% in the week from May 5. "We are definitely starting to see the bookings return now that this temporary pause is in effect," wrote Ben Tracy, Vizion's vice-president of strategic business development, in a LinkedIn post. Hapag-Lloyd's Habben Jansen said it was unclear if the current booking euphoria could hold. "Right now, we see a surge that could be very short-lived, but it could also last for 60 or 90 days, very much dependent on what comes out of those trade talks between China and the US," Habben Jansen said. Last week, shipping giant Maersk said customers reacted "very, very fast on canceling orders or stopping orders" following Trump's tariff announcement on "Liberation Day." Container volumes between the US and China plunged 30% to 40% in April, said Maersk's CEO, Vincent Clerc. Earlier this month, logistics experts and shipping specialists told Business Insider that the US could face price hikes and empty shelves within weeks as Trump's tariffs hit supply chains.
Yahoo
14-05-2025
- Business
- Yahoo
Hapag-Lloyd: China-to-US Volumes Surge 50% Since Tariff Rollback
Hapag-Lloyd is seeing a surge in container volumes on the China-to-U.S. trade lane after the countries agreed to lower their respective tariffs for 90 days. Bookings from China to the U.S. shot up 50 percent compared to the week prior, according to Rolf Habben Jansen, CEO of Hapag-Lloyd, in an earnings call Wednesday morning. More from Sourcing Journal Temu Re-Ups Direct-from-China Shipments Amidst Tariff Pause Suez Canal Offers 15% Rebates to Attract Shipping Back to the Red Sea Ocean Carriers Levy Surcharges, Cut Pakistan Port Calls Amid India Trade Embargo Additionally, import bookings are up 'in double-digit percentages' compared to the pre-tariff period, he said. While Hapag-Lloyd doesn't expect the 50 percent increase to hold up, Habben Jansen said he expects to see 'a little bit of a surge' in volume over the next 60 to 90 days. Beyond that period, it would be difficult for the ocean carrier to predict volumes, which will be dependent on trade agreements the U.S. makes with China and other countries. The volume increases represent a clear reversal from before the tariff rollback, when Hapag-Lloyd saw 'bookings being down on average around 20 percent, with peaks up to 30 percent,' in recent weeks. Some of that dip was compensated elsewhere by additional volume from Southeast Asia, Habben Jansen said. With the swift return of cargo to the trans-Pacific trade lane, Hapag-Lloyd's Gemini Cooperation with Maersk is going back on its original vessel swapping plans to further align with the capacity on the route. 'We deployed some smaller ships on the trans-Pacific instead of doing blanks in order to continue to offer those weekly sailings. Now we will reverse that, and that means that we will, as of next week or the week after next, go and deploy bigger ships again in the positions where we have put smaller ones in over the last couple of weeks,' Habben Jansen said. 'I expect that people that have put blanks into their schedules, as the quarter progresses, will continue to put ships and services back in.' Blank sailings had been the calling card for many carriers in the wake of the 145-percent tariffs on imported Chinese goods, but Hapag-Lloyd and Maersk opted not to take that approach. In the wake of the change in volume, Habben Jansen said he doesn't expect congestion to overwhelm the ports, but remained wary about them accepting too many extra ships in the coming weeks. Like other industry experts, the CEO expects at least a brief increase in ocean spot freight rates on the elevated U.S. imports. 'More than half of the cargo we have is contracted cargo, so we will continue to move that as per contract. But of course, there are also spots that have not yet been booked because they move on short term rates,' Habben Jansen said. If, as we see right now, demand is significantly stronger than or more than supply, then it would not be illogical if short-term rates go up.' Amid the about-face in the trans-Pacific, the container shipping giant affirmed its full-year guidance, with company stock increasing 12 percent Wednesday. The outlook calls for total earnings before interest and taxes (EBIT) to be in the range of $0 to $1.5 billion. The tariffs and the Red Sea crisis are two of the main factors that continue to subject the earnings range to such a high level of uncertainty, according to the company. Habben Jansen said the ocean carrier reassesses the Red Sea situation on a weekly basis, with the company judging whether the situation is safe for its workers—and whether it will remain that way for the foreseeable future—before making a return. 'We don't want to go in and out of the Red Sea all the time,' Habben Jansen said. 'We think there's going to be a transition phase of hopefully 60 to 90 days to gradually bring the ships back to their original routing. And that will generate some additional capacity.' If the Suez Canal does end up opening, Habben Jansen estimates that there would be a mid-single-digit increase in capacity that would open up for the company's ships. This total could expand up to the high-single digits, he said, but higher levels of congestion in Northern Europe and the U.S. and fuel-conserving slow steaming is likely to take up added capacity. Total revenue for the first quarter came in at $5.3 billion, up 15 percent year over year from $4.6 billion last year. Net profit at Hapag-Lloyd increased 45 percent to $469 million. The company's liner shipping segment saw 9 percent volume growth to 3.3 million 20-foot equivalent units (TEUs), the highest quarterly year-over-year increase Hapag-Lloyd has had in several years.
