Latest news with #VespucciMaritime
Yahoo
16-07-2025
- Business
- Yahoo
Port of LA Sets June Record on ‘Tariff Whipsaw'—But Signs Point to Fast Fade
The Port of Los Angeles had the busiest June in its history as the rush of cargo stemming from the aftermath of the U.S.-China tariff truce finally reached the West Coast. Loaded imports came in at 470,450 20-foot equivalent units (TEUs), 10 percent more than last year. Alongside the easing of China tensions, importers had sought to get their product into the U.S. ahead of the previous 'reciprocal' tariff deadline of July 9, which President Donald Trump pushed back to Aug. 1. More from Sourcing Journal EU Leaders 'Prepare for War' Against Trump's Tariffs US Warehouse Vacancies Hit Decade High as Tariff Fears Stall New Leasing These Retailers Are Raising Prices Because of Trump's Tariffs June's import total was a 32 percent improvement over the port's May numbers, which had plummeted due to mass blank sailings and cancelled bookings in the wake of Trump's tariffs. Approximately 45 percent of the cargo ending at the Port of Los Angeles typically originates in China, thus causing such significant swings. 'When the pause on U.S.-China tariffs was announced on May 12, this led to an immediate surge of cargo from China to the U.S., mainly of cargo which had been held back,' said Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, in a LinkedIn post. It takes time to book, load and eventually ship this cargo—and carriers only managed to increase capacity in a meaningful way from early June.' According to Jensen, this coincided with the spike in quoted spot rates seen in the second half of May and early June. 'However, the spike in bookings (and spot rates) ended abruptly around mid-June as U.S. importers no longer saw front-loading as a useful way to mitigate the tariff risk they are facing,' he said. Across the board, the port handled 8 percent more containers, or 892,340 TEUs, in June. Loaded exports landed at 126,144 TEUs, a 3 percent improvement from 2024. Port of Los Angeles executive director Gene Seroka referred to the recent volume jump as the 'tariff whipsaw effect,' noting that the combined cargo volume for May and June is 'about the same as last year,' and also matches its five-year average. Five extra vessels not normally scheduled to arrive at the port helped boost volume, according to the port director, with the gateway bumping that number to seven loaders throughout July. Seroka said in a Monday briefing that he is 'seeing a peak season push right now to bring in goods ahead of potentially higher tariffs later this summer,' noting that the port is estimating a throughput of 950,000 TEUs in July. That would be a July record for the Port of Los Angeles, surpassing TEUs by 1 percent. There are multiple negotiation deadlines before for the implementation of global tariffs: Aug. 1 for goods imported from U.S. trade partners that aren't China, and Aug. 12 for imported cargo from China. 'We're going to probably get one last push on imports coming to the U.S. and doing as much as they can to sneak in under that new Aug. 1 deadline,' Seroka said, noting that he expects volumes to ease in August. Citing July's Global Port Tracker report, Seroka pointed out the National Retail Federation's projections that U.S. ports will see a double-digit drop in inbound cargo volume from August to November. 'One thing is certain, the year-end holiday cargo orders should already be in. What's going to be on its way is what we're going to get for that all-important holiday season,' Seroka said. 'It's too late to try to negotiate orders at this point in time for that year-end product.' Dr. Zac Rogers, an associate professor of operations and supply chain management at Colorado State University, said data from the L.A. port's Signal Port Optimizer indicates that inbound peak season is already over. While 70 percent of active loaded import containers entered the terminal in the previous four days, as of Tuesday morning, 'suggesting a lot of current activity,' Rogers noted in a LinkedIn post that active empty containers suggest a 'dearth of future activity' at the port. According to the Port Optimizer, 54 percent of empty containers have been idle for 13 or more days. In total, there are 59,339 empties. 'If supply chains were expecting that another wave of inventories was incoming, we would expect to see the empties shipped back to other countries to be filled again. For reference, there were only 42,631 empties this time a year ago,' Rogers said. 'Empty containers outnumber loaded containers by 15,000 at the busiest port in the Western Hemisphere. That's not something that is supposed to happen in mid-July. Maybe there will be another rush of international inventories to stimulate peak season, but at this point is it looking increasingly unlikely.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
US trade representative holds second hearing on Chinese ship fees
United States Trade Representative Jamieson Greer will hold a second round of hearings Monday in Washington on port fees for China-built,- owned and -operated ships docking at American ports. The punitive fees are meant to blunt China's maritime dominance and help kick-start U.S. shipbuilding. Public comments ahead of the USTR's first hearing in April led to dramatic changes, notably from a scheme of blanket charges on all ships to fees based on net tonnage and number of containers carried. Expectations are that any changes by USTR this time will be less substantial in regard to container shipping. 'We might expect fewer revisions this time around – simply because the first proposal would be highly destructive to the maritime supply chain servicing the U.S., whereas the second proposal is more manageable from a container shipping perspective – although it still contains problematic elements … for example in relation to car carriers,' said Lars Jensen of consultant Vespucci Maritime in a LinkedIn post. American exporters of bulk commodities such as grain and soybeans say the fees will make their products less competitive in the global market. 'Individuals don't pay [directly] to build aircraft carriers; farmers don't want to pay to build ships,' said Peter Friedmann, executive director of the Agricultural Transportation Coalition. 'If we are not competitive on price, buyers will find other markets.' Jensen said shippers should expect that ocean carriers will attempt to pass on resultant costs in the form of new surcharges. He added that U.S. companies still face higher costs due to the Trump administration's proposed new tariffs on containers, cranes, chassis and chassis parts. Any new changes could go into effect either in mid-October or in 180 days depending on whether USTR revises the implementation date. Find more articles by Stuart Chirls Beach sees record TEUs on trade war effect Hapag-Lloyd expects swift China ramp-up after bookings jump 50% Tariff two-step: After pause, China-US container traffic increases Maersk looks to fill up corridors in a flash (sale) The post US trade representative holds second hearing on Chinese ship fees appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
13-05-2025
- Business
- South China Morning Post
Shipping demand set to explode as firms rush to exploit US-China tariff pause
Transpacific shipping routes are set to witness a dramatic uptick in container traffic over the coming weeks, as businesses rush to front-load shipments to take advantage of a temporary reduction in US and Chinese tariffs, analysts said. The 90-day truce announced by China and the United States on Monday is expected to trigger an immediate surge in demand for container shipping, with some analysts warning the increase in shipments could be so large that it creates bottlenecks at American ports. The de-escalation of the trade war came earlier than many expected, container shipping intelligence firm Linerlytica said in a note on Monday, which is 'setting the stage for a surge in transpacific cargo volumes in the next three months'. The wave of demand will be even more intense due to the fact that many companies already have significant backlogs of goods ready to ship, with US importers adopting a 'wait-and-see' strategy in recent weeks as they watched for any potential move to roll back tariffs, said Lars Jensen, the founder of Vespucci Maritime, in an online post. Following trade talks in Switzerland over the weekend, the US has agreed to reduce its recently imposed tariffs on Chinese imports from 145 per cent to 30 per cent, with 91 percentage points of those tariffs scrapped and 24 percentage points suspended for a period of 90 days. China, in turn, has agreed to cut its retaliatory tariffs on US imports from 125 per cent to 10 per cent. The deal will come into effect on Wednesday.
Yahoo
12-05-2025
- Business
- Yahoo
Temporary Tariff Truce to Trigger Import Surge of Chinese Goods
With the U.S. and China agreeing to scale back their tariffs imposed on each other for 90 days, expect cargo on the trans-Pacific trade lane to kick back up imminently—facilitating an earlier peak shipping season. While import volumes into the U.S. cratered more than 35 percent at the San Pedro Bay port complex in early May after tariffs on Chinese goods escalated to 145 percent, with retailers cancelling bookings and carriers blanking sailings, the new agreement breathes new life into trade between both countries. More from Sourcing Journal Not Just Dolls: Holiday Shipments Down 56 Percent, Interos Data Shows India-Pakistan Port Bans Trigger Delays, Rate Hikes and Capacity Crunch Tariff Ticker: China-US Trade Talk On the Books, But Trump Holds Fast on Triple-Digit Duties Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, expects an immediate surge in containers exiting China, which saw exports to the U.S. decline 21 percent in April due to the tariffs. 'The 90-day pause expires in the middle of the usual peak season for holiday-related goods going to the U.S,' said Jensen in a LinkedIn post Monday morning after the announcement was made. 'We should therefore expect a possible pull-forward of cargo creating a shorter, sharper, peak season from basically right now.' Jensen noted that there is 'already a large amount of cargo ready to go' due to the 'wait-and-see' strategy U.S. importers have adopted over the past month. With that in mind, Chinese exporters and manufacturers have had high levels of finished goods already ready to ship. 'With the expected surge in cargo, we should also expect that the U.S. ports, which are right now facing a massive drop in cargo volume, will in three to six weeks switch to face a surge of cargo with a substantial risk of bottleneck issues and delays as a consequence,' Jensen said. The outlook for U.S. ports through the early fall looked bleak, according to data from the monthly Global Port Tracker released Friday by the National Retail Federation (NRF) and Hackett Associates. In May, forecasts for inbound cargo volume were down 12.9 percent year over year to end 19 consecutive months of year-over-year growth, at 1.81 million 20-foot equivalent units (TEUs). But the TEU numbers were expected to tank even further once summer fully kicked in. June had a 20.2 percent year-over-year drop projected, while July cargo was anticipated to tank 23.4 percent. In August, inbound cargo volume forecasts were down 21.5 percent, while September's container declines were estimated at 21.2 percent. According to Jensen, carriers will reinstate many of the blank sailings announced in recent weeks. Across April and May, blank sailings accounted for 19 percent of the total Asia-to-North America West Coast planned capacity, as well as 17 percent of Asia-to-North America East Coast capacity, said maritime advisory firm Sea-Intelligence. 'The question is how quickly this can be done. That depends in part on where the vessels are physically,' said Jensen. 'How quickly this can happen will also determine to which degree there might be a short-term capacity shortage on the Pacific resulting in escalating spot rates.' Peter Sand, chief analyst at Xeneta, agreed that the 90-day window would pressure shippers to move as many goods as possible in the interim, 'putting upward pressure on freight rates.' Since late March, ocean freight rates have largely remained level to both U.S. coasts, largely due to the blank sailings cancelling out the collapse in imports. 'It takes time to shift capacity back again, so a revival in volumes from China to U.S. may mean shippers have to pay a little over the odds in the short term,' said Sand in a blog post. According to Freightos' head of research Judah Levine, rates will rise, but aren't expected to reach 2025 peak season levels experienced on both coasts due to new carrier alliances and fleet growth. China-to-U.S. West Coast spot freight rates reached as high as $8,121.75 per 40-foot container in early July 2024 and are now $2,395.25 as of Friday, according to the Freightos Baltic Index. 'We might not see last year's $8,000/FEU highs due to a more competitive, well-supplied carrier landscape already keeping rates lower year on year,' Levine said. Even if the freight rate escalation is more manageable, the American Apparel & Footwear Association (AAFA) still shared concerns of the temporarily cut tariffs' impacts on consumers. 'If freight rates spike due to the tariff-induced shipping disruptions—which will take months to unwind—we could see costs and prices creep up even further,' said Steve Lamar, AAFA CEO and president, in a statement. Sand also shared Jensen's assessment that a peak shipping season, which typically lasts from August to October, would arrive earlier. But he said a resurgence in demand may be slower for some low-margin goods amid the remain tariff. 'It must not be ignored there is still a 30-percent tariff on imports from China to the U.S. and this will be prohibitive for some businesses with lower-margin goods, so there will still be an adverse impact on ocean container shipping demand,' Sand said. 'It may also take shippers a little time to ramp up sourcing and manufacturing in China again if they took the foot off the gas following the 145-percent tariffs announced on April 9.' Sign in to access your portfolio
South China Morning Post
25-03-2025
- Business
- South China Morning Post
US plan to tax Chinese ships hits choppy waters as backlash intensifies
The US government is facing growing opposition over its plans to introduce steep fees targeting Chinese-linked ships entering American ports, with global shipping bodies and industry experts slamming the proposals as 'disruptive' and counterproductive. Advertisement The comments come as the Office of the United States Trade Representative (USTR) holds two days of public hearings in Washington over the policy, which would impose charges of up to US$1.5 million per port call for any shipping operator with Chinese-made vessels in their fleets or newbuilding orders with Chinese shipyards. USTR has claimed the port fees, which it first proposed last month , are necessary to protect America's national security and combat the dominance of China's shipbuilding industry, which the USTR judges to be built on unfair government subsidies. But the idea has sparked intense criticism from within the shipping industry, with insiders arguing the fees will harm the competitiveness of America's own maritime sector while failing to curtail China's lead 'If implemented as proposed, it will be an extremely large disruptive event for shipments to and from the US, and with ripple effects which will subsequently be felt also in non-US trades,' said Lars Jensen, CEO of industry consultancy Vespucci Maritime, in a social media post on Tuesday. Advertisement During the first day of the hearings on Monday, representatives from several maritime groups – including two Chinese industry associations – urged policymakers to rethink the proposal and pursue a more effective approach to reviving America's shipping industry, according to testimonies and comments posted on the USTR website.
