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RNZ News
15-05-2025
- Business
- RNZ News
Tariffs devastated America's ports. Soon, they could face a surge from stockpiling
By Vanessa Yurkevich , CNN Containers at the Port of Long Beach in Long Beach, California on 12 May. Photo: Tim Rue/Bloomberg/Getty Images via CNN Newsource US ports are facing a dramatic slowdown in cargo - but they could see the exact opposite in a matter of weeks. Starting Wednesday (local time), cargo leaving China bound for the United States will carry a 30 percent tariff rate - a reduction from the higher 145 percent tariff that was in place for six weeks. The United States and China announced a dramatic de-escalation in tariffs on Monday, lowering cripplingly high rates for 90 days. Experts say retailers will likely frontload more cargo during the pause, working against the clock to bring in inventory before things change again. "You're right kind of smack dab in the middle of when all that holiday merchandise is supposed to be coming in. So, there might be some retailers who decide to bring more product in early to get ahead of that potential expiration if they're able to," said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation That's exactly what retailers did before the first wave of tariffs took effect on 9 April, stockpiling imports in March. China is one of America's most important trading partners, where it gets most of its clothes, footwear, toys, electronics and microchips. For many businesses, the higher tariffs make it too expensive to do business with China. The Port of Seattle's commission vice president Ryan Calkins told CNN Wednesday "we anticipate that by mid-summer we are going to see a surge, and we will staff up significantly… to make sure we can operate at full capacity to manage all that". Flexport, a logistics and freight forwarding broker, said Monday it was too early to predict the exact scale of the surge following the US-China announcement, but that they were anticipating a "boom" in bookings. Charles van der Steene, North American president of shipping giant Maersk, told CNN Wednesday that shipment volumes from China into the United States had fallen by as much as 40 percent, because of significant uncertainty around tariffs. Most shippers simply pressed the pause button on trade, he said. "Because of the uncertainty, unsure what would be happening, they literally stopped their supply chain," van der Steene told CNN's Jon Berman. "So now that we look ahead and there's a reprieve against lower tariffs for 90 days and clarity about what we have in front of us, the expectation is the pent-up supply will now make it back into the supply chain." Peter Boockvar, an economist at The Boock Report, says that while it's still unclear how much a 30 percent tariff rate on China will make a difference, some retailers will take advantage of the lower rate. "You are going to see a rush of ordering over the next 90 days the likes we've never seen before. You are going to see the cost of transportation skyrocket too in the coming weeks/months," Boockvar wrote. Despite experts predicting goods will soon surge into American harbours, West Coast ports are still projecting the number of ships, and the volume of cargo, to fall significantly this month. That because it takes ships three to four weeks to arrive on the West Coast from China. "By the end of this month, we'll be down 20 percent the number of ship calls and probably about 25 percent in the volume of cargo," Gene Seroka, the executive director of the Port of Los Angeles, told CNN's Erin Burnett on Monday. The Port of Long Beach also saw a 35-40 percent reduction in cargo last week and noted that for a 12-hour period on Friday, no ships left China bound for the San Pedro Bay Complex, which encompasses both Long Beach and the Port of Long Angeles. It was an occurrence officials hadn't seen since the pandemic. Currently, there are 17 fewer ships than usual bound for the two ports through 16 May, according to the Marine Exchange of Southern California & Vessel Traffic Service Los Angeles Long Beach. The Port of Seattle also reported empty docks last week, another anomaly that hasn't happened since the pandemic. The Northwest Seaport Alliance, which represents the ports of Seattle and Tacoma, expects volume to drop anywhere from 8 percent to 15 percent compared to normal times. Vessels from China that are set to arrive this week are carrying 17 percent less cargo than usual, the alliance said. "These (tariff) reductions don't undo the consequences of their implementation. The uncertainty, market disruption, cargo fluctuation, and lost business caused by the initial and remaining tariffs is still a significant concern. Both reductions in cargo and surges have consequences that impact the supply chain. Consistency is a requirement of a fluid supply chain and the jobs that depend on it," the Northwest Seaport Alliance said in a statement. It's not just the West Coast - it also takes four to six weeks for ships to reach East Coast ports from Asia, which would push back any cargo surge till next month. "If they (retailers) start placing orders now, mid to late June is when that cargo might start to arrive. So you'll probably see a slowdown for the next few weeks and then an uptick up until July," said Gold. But a 30 percent tariff on Chinese imports, while significantly lower than 145 percent, is still unworkable for many businesses, especially smaller ones. The US Chamber of Commerce said Monday that "tariffs are much higher overall than they were at the beginning of the year," and reaffirmed their request for the Trump administration to exempt small businesses from tariffs. "The larger retailers are in a better position than some of the smaller retailers to be able mitigate" the costs of tariffs, Gold said. "I think there are a lot of ongoing discussions right now about how this is all going to work out." - CNN
Yahoo
08-05-2025
- Business
- Yahoo
Port Of Seattle Commissioner Sounds Alarm On 'Real Implications' Of Trump Tariffs
The commissioner of the Port of Seattle on Wednesday offered a frightening snapshot of how President Donald Trump's widespread tariffs could result in a massive economic blow in the weeks ahead. Ryan Calkins — who predicted a 40% drop in container imports at the ports of Seattle and nearby Tacoma over the next few weeks — told CNN's Kaitlan Collins that, as of about 6 p.m., there were 'no container ships' berthed in the Port of Seattle. 'And that happens every once in a while in normal times but it's pretty rare,' he said. 'And so to see it tonight is, I think, a stark reminder that the impacts of the tariffs have real implications.' ADVERTISEMENT Calkins added that there weren't longshore workers on the dock unloading merchandise nor were there trains taking goods to inland ports or other cities such as Chicago, Illinois and Des Moines, Iowa. 'That's hundreds of jobs right here in our region and across the country,' Calkins continued. He went on to describe ports as the 'canary in the coal mine' for the country. 'The canary's struggling right now,' he said. Economists have claimed that should America face a recession, the possibility of which Trump has downplayed, it will begin on U.S. docks as the president rallies behind 145% tariffs on imported goods from China. The fears in Seattle come as the Port of Los Angeles — the busiest in the Western Hemisphere— expects to see container volume drop by more than one-third this week compared to the same time as last year, Axios noted. ADVERTISEMENT On Tuesday, CNN reported that the first ships carrying Chinese goods hit by Trump's tariffs have arrived in Los Angeles — meaning Americans could be just weeks away from seeing increased prices along with product shortages. U.S. exports have also plunged when comparing data from a five-week period before Trump's tariffs announcement to the five weeks afterward, according to an analysis by container-tracking company Vizion that was reported by CNBC. 'We haven't seen anything like this since the disruptions of summer 2020,' Vizion CEO Kyle Henderson told CNBC. Commissioner of the port of Seattle: I'm looking out at the port of Seattle right now, and we currently have no container ships at berth. And that happens every once in a while in normal times. But it is pretty rare. And so to see it tonight is, I think, a stark reminder that the… — Acyn (@Acyn) May 8, 2025 Related...
Yahoo
08-05-2025
- Business
- Yahoo
Port Of Seattle Commissioner Sounds Alarm On 'Real Implications' Of Trump Tariffs
The commissioner of the Port of Seattle on Wednesday offered a frightening snapshot of how President Donald Trump's widespread tariffs could result in a massive economic blow in the weeks ahead. Ryan Calkins — who predicted a 40% drop in container imports at the ports of Seattle and nearby Tacoma over the next few weeks — told CNN's Kaitlan Collins that, as of about 6 p.m., there were 'no container ships' berthed in the Port of Seattle. 'And that happens every once in a while in normal times but it's pretty rare,' he said. 'And so to see it tonight is, I think, a stark reminder that the impacts of the tariffs have real implications.' Calkins added that there weren't longshore workers on the dock unloading merchandise nor were there trains taking goods to inland ports or other cities such as Chicago, Illinois and Des Moines, Iowa. 'That's hundreds of jobs right here in our region and across the country,' Calkins continued. He went on to describe ports as the 'canary in the coal mine' for the country. 'The canary's struggling right now,' he said. Economists have claimed that should America face a recession, the possibility of which Trump has downplayed, it will begin on U.S. docks as the president rallies behind 145% tariffs on imported goods from China. The fears in Seattle come as the Port of Los Angeles — the busiest in the Western Hemisphere— expects to see container volume drop by more than one-third this week compared to the same time as last year, Axios noted. On Tuesday, CNN reported that the first ships carrying Chinese goods hit by Trump's tariffs have arrived in Los Angeles — meaning Americans could be just weeks away from seeing increased prices along with product shortages. U.S. exports have also plunged when comparing data from a five-week period before Trump's tariffs announcement to the five weeks afterward, according to an analysis by container-tracking company Vizion that was reported by CNBC. 'We haven't seen anything like this since the disruptions of summer 2020,' Vizion CEO Kyle Henderson told CNBC. Related...
