Latest news with #TheBoockReport
Yahoo
14-05-2025
- Business
- Yahoo
Tariffs devastated America's ports. Soon, they could face a surge from stockpiling
US ports are facing a dramatic slowdown in cargo – but they could see the exact opposite in a matter of weeks. Starting Wednesday, cargo leaving China bound for the US will carry a 30% tariff rate – a reduction from the higher 145% tariff that was in place for six weeks. The US 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 April 9, stockpiling imports in March. China is one of America's most important trading partners, where we get most of our clothes, footwear, toys, electronics and microchips. For many businesses, the higher tariffs make it too expensive to do business with China. 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. Peter Boockvar, an economist at The Boock Report, says that while it's still unclear how much a 30% 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 harbors, 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 3 to 4 weeks to arrive on the West Coast from China. 'By the end of this month, we'll be down 20% the number of ship calls and probably about 25% 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% 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 seventeen fewer ships than usual bound for the two ports through May 16, 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% to 15% compared to normal times. Vessels from China that are set to arrive this week are carrying 17% 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 4 to 6 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% tariff on Chinese imports, while significantly lower than 145%, 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
14-05-2025
- Business
- CNN
Tariffs devastated America's ports. Soon, they could face a surge from stockpiling
US ports are facing a dramatic slowdown in cargo – but they could see the exact opposite in a matter of weeks. Starting Wednesday, cargo leaving China bound for the US will carry a 30% tariff rate – a reduction from the higher 145% tariff that was in place for six weeks. The US 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 April 9, stockpiling imports in March. China is one of America's most important trading partners, where we get most of our clothes, footwear, toys, electronics and microchips. For many businesses, the higher tariffs make it too expensive to do business with China. 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. Peter Boockvar, an economist at The Boock Report, says that while it's still unclear how much a 30% 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 harbors, 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 3 to 4 weeks to arrive on the West Coast from China. 'By the end of this month, we'll be down 20% the number of ship calls and probably about 25% 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% 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 seventeen fewer ships than usual bound for the two ports through May 16, 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% to 15% compared to normal times. Vessels from China that are set to arrive this week are carrying 17% 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 4 to 6 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% tariff on Chinese imports, while significantly lower than 145%, 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.'
Yahoo
20-02-2025
- Business
- Yahoo
Asian Stocks Drop After Fed Minutes Show Caution: Markets Wrap
(Bloomberg) -- Shares in Asia fell Thursday following muted moves on Wall Street after Federal Reserve meeting minutes signaled that it's in no rush to cut interest rates. Trump to Halt NY Congestion Pricing by Terminating Approval Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups Child Migrant Watchdog Gutted in DOGE Cuts Airbnb Billionaire Plans Factory-Built Homes for LA Fire Victims Chicago Council Delays $830 Million Bond Vote Amid Scrutiny Stocks in Japan and Australia dropped while equity index futures for Hong Kong also drifted lower. Contracts for US stocks also slipped in early Asian trading after the S&P 500 climbed 0.2% on Wednesday to set a new high, with defensive sectors outperforming in a sign of investor caution. The yen extended its rally against the greenback on Thursday to trade around 151 per dollar. Fed minutes showed policymakers in January expressed a readiness to hold interest rates steady amid stubborn inflation and economic-policy uncertainty. Officials also revealed pausing or slowing the balance-sheet runoff — a process known as quantitative tightening, or QT, until the government's debt-ceiling drama is resolved. 'They will sit and wait before cutting again,' said Peter Boockvar, author of The Boock Report. 'I say 'cut' because it still seems like they have an easing bias. The Fed also commented on the balance sheet. This could also be a reason why yields dipped a bit.' Financial markets appeared unphased by comments from President Donald Trump late on Wednesday in the US, which touched on efforts to cut government spending and further work to be done on tariffs. He also touted the Nasdaq, Dow Jones and Bitcoin gains in the last few months. Bitcoin was a popular so-called Trump trade and soared to a record high in the months following November's US election but has since fallen around 10% from a peak in January. In Asia, data set for release Thursday includes export orders for Taiwan, inflation for Hong Kong and China one-year and five-year loan prime rates. Separate one-year medium-term lending facility data for China may be released anytime through February 25. The latest China data will come after the country recorded the weakest start for inbound investment in four years, with just over $13 billion in new spending by foreign firms in the country in January. Investors will also be focused on Alibaba Group Holding Ltd., which faces a key test in its earnings presentation Thursday after a DeepSeek-sparked rally added more than $110 billion to its market value. Elsewhere in the region, Rio Tinto Group posted a slide in annual profit, while Fortescue Ltd. reported a 53% drop in first-half profit, reflecting a decline in iron ore prices as Chinese demand has weakened. In US trading Wednesday, quantum-computing shares jumped on Microsoft Corp.'s new chip. Homebuilders got hit after results from Toll Brothers Inc. and key construction data indicated the residential real estate market may be in store for more turbulence. US economic data released Wednesday showed housing starts slowed in January as builders pulled back on single- and multifamily home construction amid growing worries over mortgage rates and unsold homes. Treasuries were steady in early Asian trading after gains in the prior session. The Bloomberg Dollar Spot Index was little changed after rising 0.2% Wednesday. Oil prices rose Wednesday against the backdrop of uncertainties about crude supplies from Russia, Kazakhstan and OPEC+. Meanwhile, gold held just below an all-time high as mounting geopolitical tension underscored the metal's haven appeal. Key events this week: China loan prime rates, Thursday Eurozone consumer confidence, Thursday US initial jobless claims, Philadelphia Fed manufacturing index, Thursday Fed's Austan Goolsbee and Alberto Musalem speak, Thursday Eurozone HCOB manufacturing & services PMI, Friday US S&P Global manufacturing & services PMI, existing home sales, consumer sentiment, Friday Some of the main moves in markets: Stocks S&P 500 futures were little changed as of 8:18 a.m. Tokyo time Hang Seng futures fell 0.8% Australia's S&P/ASX 200 fell 0.7% Currencies The Bloomberg Dollar Spot Index rose 0.2% The euro was little changed at $1.0425 The Japanese yen rose 0.1% to 151.26 per dollar The offshore yuan was little changed at 7.2822 per dollar The Australian dollar was unchanged at $0.6344 Cryptocurrencies Bitcoin rose 0.4% to $96,746.84 Ether rose 0.5% to $2,723.08 Bonds Australia's 10-year yield declined two basis points to 4.51% Commodities West Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation. Japan Perfected 7-Eleven. Why Can't the US Get It Right? How Med Spas Conquered America Before DeepSeek Blew Up, Chatbot Arena Announced Its Arrival The Startup That Stepped In When the Baby Formula Supply Chain Broke Elon Musk's DOGE Is a Force Americans Can't Afford to Ignore ©2025 Bloomberg L.P. Sign in to access your portfolio
