Latest news with #Vietnam-to-US
Yahoo
22-05-2025
- Business
- Yahoo
Vietnam Completes Second Round of Trade Talks With U.S.
The United States and Vietnam have concluded a second round of trade negotiations according to Vietnam's trade ministry, which noted significant progress being made in talks scheduled from May 19-22 in Washington. In a statement on Thursday, the trade body said that both sides engaged in substantive discussions on all agenda items outlined ahead of the session. Vietnam faces one of the highest tariff impositions announced by president Trump's administration in April, at 46 percent. More from Sourcing Journal Trump Lashes Out at Walmart, Says Retailer Should 'Eat the Tariffs' Tariffs Tank China's US Exports, but Southeast Asia and India Cash In Vietnam-to-US Exports, Freight Rates Soar on Tariff Drama Nguyễn Hồng Diên, minister of industry and trade in Vietnam met with Ambassador and US Trade Representative Jamieson Greer to review the outcomes of the second round and identify key issues. According to a statement from the ministry on Thursday, discussions will continue at the end of June. The 90-day pause on the proposed 46-percent tariffs ends on July 8. Hồng Diên spoke about the intent to foster a balanced and sustainable economic and trade relationship with the U.S., for the benefit of both countries' peoples and businesses', while Ambassador Greer praised Vietnam's goodwill and efforts to address US concerns and expressed a desire to continue technical-level and ministerial-level exchanges to reach an agreement as soon as possible. According to the office of the U.S. Trade representative, the trade deficit of Vietnam with the U.S. was $123.5 billion in 2024, with the U.S. importing goods worth $136.6 billion in 2024, as against exporting goods worth $13.1 billion to Vietnam. Meanwhile, the industry in Vietnam has been gathering at several forums over the past few weeks to get a handle on what the 46 percent tariff levied against Vietnam could mean for the industry. Vietnam exported apparel worth $44 billion in 2024, with an approximate 38 percent of this to the U.S, an increase of 12.33 percent over the previous year according to the Vietnam Textile and Apparel Association (VITAS). At a forum organized by Cascale in Ho Chi Minh City on May 14-15, Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association (VITAS) mirrored the feeling that appeared to be reverberating through the 600 industry professionals present. 'None of us can go alone—collaboration is the only way. When brands, manufacturers, organizations and governments come together and share responsibility, any goal can be achieved,' he said in his keynote address. The point was amplified through the event. 'The Cascale Forum in Ho Chi Minh City reminds us that while policy can shift and stall, manufacturers have a great opportunity to lead. Our ongoing mandate is to ensure that this progress isn't slowed by uncertainty—but accelerated through collaboration,' Andrew Martin, executive vice president, Cascale, said in a session. Cascale, a global nonprofit alliance formerly known as the Sustainable Apparel Coalition, empowers collaboration to drive equitable and restorative business practices in the consumer goods industry, and owns and develops the Higg Index, which is available on Worldly, a comprehensive sustainability data and insights platform. Sharing their thoughts, and in urgent discussions that often skirted around the looming tariffs were manufacturers, leading brands, service providers, and supply chain partners. Other important issues including decarbonization, regulatory changes, facility improvements, responsible contracting and worker rights were also discussed. Vietnamese manufacturers attending the event told Sourcing Journal about their fears that global brands would pressure them to shoulder the costs of tariff impacts, while underlining the need to protect workers as the apparel industry in Vietnam employs more than three million people. Discussions about how this situation should be handled were also ongoing. As Lindsay Wright, director of communications and strategic partnerships, Better Buying, Cascale observed: 'Manufacturers are clear: Global brands should not use tariffs as an excuse to roll back on their responsible business commitments. If they do, the consumer goods industry will have to pick up the pieces later.' Massimiliano Tropeano, garment, trade and sustainability expert at GIZ-EuroCham Cambodia, noted that while tariffs focused on reshaping physical trade flows, the real story is much more complex. 'The complexity of a topic like tariff trade cannot be simplified, however, the base number on which the trade imbalance have been calculated are intrinsically wrong. Take the iPhone. Designed in California, yes—but manufactured in China. This shows up as China's export numbers, not America's. And it's not just hardware. Software giants like Microsoft, Meta, and Alphabet sell digital products and services globally—but often book the revenue through offshore entities in low-tax jurisdictions like Ireland or the kicker to all of this is that ironically the above is adding to the very trade imbalance that U.S. tariffs aimed to correct.' 'As we move forward in a world of digital globalization, maybe it's time to rethink how we measure economic power, national competitiveness, and fair trade,' he said. Important points to note for manufacturers included the focus on managing regulations as well as sustainability and environmental concerns. 'In the Asia-Pacific region, regulation is fast becoming strategy,' Cascale's Martin emphasized. 'We are increasingly seeing many countries stepping up with more progressive policies. To support this, Cascale advocates for clear, consistent guidance that manufacturers can actually use. We're actively engaging across all three regions to push for global and regional frameworks that are practical, aligned, and grounded in manufacturers' realities. 'Our shared mission is driving positive impact across the largest engaged supply chain network in the industry,' said Adele Stafford, chief growth officer at Worldly at the event. She spoke about the growing momentum on the platform: 'Over 20,000 Higg Facility Environmental Modules (FEMs) have already been completed in 2025, with each supplier sharing data with an average of four brands, improving efficiency.' While economists are calling for 'increased self reliance,' manufacturers are also looking at ways to speed past the possible deadline on July 8. The HCM City Association of Garments, Textiles, Embroidery and Knitting has called for ramping up production to increase shipments before the tariff increases kick in. 'There's only so much we can do to sidestep this huge tariff,' a manufacturer said, asking not to be named. 'Meanwhile, we're just counting on negotiations turning this new avalanche around.'
Yahoo
09-05-2025
- Business
- Yahoo
Maersk Expects No Cost Impact From Port Fees, Assures ‘Unchanged' Service
U.S. port docking fees may have spooked the container shipping industry and the retail industry alike, among many others, before they were finalized in mid-April. But Maersk is brushing the concerns aide, assuring its customers it won't see any direct impacts. 'At this time, we do not see a direct cost from this initiative impacting Maersk or our customers,' said the ocean carrier in a customer advisory Thursday. 'We do not anticipate changes to our U.S. port rotations due to the new fees. Your current service plans remain unchanged.' More from Sourcing Journal India-Pakistan Port Bans Trigger Delays, Rate Hikes and Capacity Crunch Maersk Cuts 2025 Container Outlook: China Capacity 'Not Available Elsewhere' Vietnam-to-US Exports, Freight Rates Soar on Tariff Drama Maersk, which moves product for retail giants including Walmart, Target, Nike and Gap, Inc., is seeking to quell concerns that range from higher container prices to fewer port calls and lengthier delivery times. Starting Oct. 14, fees on Chinese-owned and -operated ships will be based on net tonnage per U.S. voyage, and will be set at $50 per net ton. From there, an extra $30 per net ton will be tacked on each year through 2028. But Chinese-built ships owned by non-Chinese companies, which Maersk falls under, will be charged $18 per net ton, with annual fee increases of $5 over the same period. The penalties were levied by the U.S. Trade Representative (USTR) after it ruled that China had an 'unreasonable' state-subsidized dominance of the maritime, logistics and shipbuilding sectors, concluding a nine-month long investigation. Of the major non-Chinese ocean carriers, Maersk had the most U.S. calls using Chinese-built vessels. Out of a total of 214 Maersk ships sailing to U.S. ports, 38 were built in China, ahead of ZIM's 37, CMA CGM's 36 and MSC's 34, according to data from Alphaliner. But the container shipping firm's wider fleet of 737 ships, along with its vessel-sharing alliance with Hapag-Lloyd, will likely ensure that the company can more easily switch USTR-compliant ships in to call at U.S. ports once the fees go into effect. Across the industry, only 20 percent of the current fleet of container ships calling at U.S. ports would be affected. Those vessels are expected to be swapped with exempt ships over the next six months, according to an April 21 blog from container shipping analysis firm Linerlytica. 'All of the main carriers have sufficient exempt ships available to make the switch without severe operational disruptions,' said Linerlytica. As the Maersk-Hapag Lloyd Gemini Cooperation further phases in, schedule reliability has remained a top priority for both carriers as they call at fewer ports. In March, Gemini recorded a 90.3 percent schedule reliability across all alliance port calls, according to Sea-Intelligence. This marked the second month in a row the carriers have adhered to their 90-percent reliability goal the companies set when they entered the alliance last year. In a Thursday earnings call, CEO Vincent Clerc said the modularization of the Gemini network has enabled the companies to cater to the lower China-to-U.S. demand without resorting to blank sailings—a forward-looking indicator of its ability to shift Chinese-built ships out of rotation before docking at American ports. 'So you have an 8,000-20-foot equivalent unit (TEU) ship, and the demand drops by 40 percent—you swap the 8,000 with a 6,000-TEU ship that helps soften that,' Clerc said. 'Then you deploy your 8,000-TEU ship in another trade where the 6,000 was before and where there is better demand and where you can get better asset utilization going forward…But I want to be clear on the fact that we are managing capacity down to demand. We'll continue to do that, and we're doing it as aggressively as any other alliance.' The revised port fees will have the biggest impact on Chinese carriers like Cosco Shipping and its subsidiary Orient Overseas Container Line (OOCL), with the former calling the penalties 'discriminatory.' The two carriers made over 1,300 U.S. port calls in the 12 months through March, according to data from S&P Global Market Intelligence. This throws some wrenches into the plans of the Ocean Alliance, which is the shared network that also consists of CMA CGM and Evergreen. Those two carriers are likely to have a bigger presence on the trans-Pacific trade lane in place of Cosco and OOCL as the fees kick in. While a shift in which vessels use certain service loops will prevent the company from having to pay fines, it would still put the wider alliance in a more precarious position to ensure service levels are not negatively affected.
Yahoo
09-05-2025
- Business
- Yahoo
Maersk Expects No Cost Impact From Port Fees, Assures ‘Unchanged' Service
U.S. port docking fees may have spooked the container shipping industry and the retail industry alike, among many others, before they were finalized in mid-April. But Maersk is brushing the concerns aide, assuring its customers it won't see any direct impacts. 'At this time, we do not see a direct cost from this initiative impacting Maersk or our customers,' said the ocean carrier in a customer advisory Thursday. 'We do not anticipate changes to our U.S. port rotations due to the new fees. Your current service plans remain unchanged.' More from Sourcing Journal India-Pakistan Port Bans Trigger Delays, Rate Hikes and Capacity Crunch Maersk Cuts 2025 Container Outlook: China Capacity 'Not Available Elsewhere' Vietnam-to-US Exports, Freight Rates Soar on Tariff Drama Maersk, which moves product for retail giants including Walmart, Target, Nike and Gap, Inc., is seeking to quell concerns that range from higher container prices to fewer port calls and lengthier delivery times. Starting Oct. 14, fees on Chinese-owned and -operated ships will be based on net tonnage per U.S. voyage, and will be set at $50 per net ton. From there, an extra $30 per net ton will be tacked on each year through 2028. But Chinese-built ships owned by non-Chinese companies, which Maersk falls under, will be charged $18 per net ton, with annual fee increases of $5 over the same period. The penalties were levied by the U.S. Trade Representative (USTR) after it ruled that China had an 'unreasonable' state-subsidized dominance of the maritime, logistics and shipbuilding sectors, concluding a nine-month long investigation. Of the major non-Chinese ocean carriers, Maersk had the most U.S. calls using Chinese-built vessels. Out of a total of 214 Maersk ships sailing to U.S. ports, 38 were built in China, ahead of ZIM's 37, CMA CGM's 36 and MSC's 34, according to data from Alphaliner. But the container shipping firm's wider fleet of 737 ships, along with its vessel-sharing alliance with Hapag-Lloyd, will likely ensure that the company can more easily switch USTR-compliant ships in to call at U.S. ports once the fees go into effect. Across the industry, only 20 percent of the current fleet of container ships calling at U.S. ports would be affected. Those vessels are expected to be swapped with exempt ships over the next six months, according to an April 21 blog from container shipping analysis firm Linerlytica. 'All of the main carriers have sufficient exempt ships available to make the switch without severe operational disruptions,' said Linerlytica. As the Maersk-Hapag Lloyd Gemini Cooperation further phases in, schedule reliability has remained a top priority for both carriers as they call at fewer ports. In March, Gemini recorded a 90.3 percent schedule reliability across all alliance port calls, according to Sea-Intelligence. This marked the second month in a row the carriers have adhered to their 90-percent reliability goal the companies set when they entered the alliance last year. In a Thursday earnings call, CEO Vincent Clerc said the modularization of the Gemini network has enabled the companies to cater to the lower China-to-U.S. demand without resorting to blank sailings—a forward-looking indicator of its ability to shift Chinese-built ships out of rotation before docking at American ports. 'So you have an 8,000-20-foot equivalent unit (TEU) ship, and the demand drops by 40 percent—you swap the 8,000 with a 6,000-TEU ship that helps soften that,' Clerc said. 'Then you deploy your 8,000-TEU ship in another trade where the 6,000 was before and where there is better demand and where you can get better asset utilization going forward…But I want to be clear on the fact that we are managing capacity down to demand. We'll continue to do that, and we're doing it as aggressively as any other alliance.' The revised port fees will have the biggest impact on Chinese carriers like Cosco Shipping and its subsidiary Orient Overseas Container Line (OOCL), with the former calling the penalties 'discriminatory.' The two carriers made over 1,300 U.S. port calls in the 12 months through March, according to data from S&P Global Market Intelligence. This throws some wrenches into the plans of the Ocean Alliance, which is the shared network that also consists of CMA CGM and Evergreen. Those two carriers are likely to have a bigger presence on the trans-Pacific trade lane in place of Cosco and OOCL as the fees kick in. While a shift in which vessels use certain service loops will prevent the company from having to pay fines, it would still put the wider alliance in a more precarious position to ensure service levels are not negatively affected. 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
09-05-2025
- Business
- Yahoo
India-Pakistan Port Bans Trigger Delays, Rate Hikes and Capacity Crunch
Supply chain delays out of India and Pakistan are expected to hit ocean carriers as both countries closed off port access to each other. India's restrictions are more nuanced than Pakistan's, which are a blanket prohibition of the import and transit of Indian goods. A May 2 decree banned vessels which have cargo from Pakistan onboard, including empty containers, from calling at Indian ports. More from Sourcing Journal Vietnam-to-US Exports, Freight Rates Soar on Tariff Drama 'Game-Changing' India-U.K. Free Trade Agreement Finally a Done Deal India-Pakistan Trade Standoff Escalates Amid Kashmir Attack Fallout Vessels carrying Pakistan-originated cargo that departed before the restriction are not permitted to berth at Indian ports until such cargo is discharged elsewhere. The ban is expected to cause delays and could leave some cargo to be turned away from Indian ports like Mumbai, Mundra and Nhava Sheva. Complicating matters, the restrictions in place will make it 'nearly impossible' for carrier services to make direct vessel calls to Pakistan's Port of Karachi or Port Qasim after stopping at Indian ports, according to freight forwarder OEC Group. A report from India Shipping News indicated that a Hapag-Lloyd container ship, the Nagoya Express, called at Port Qasim on May 1 and was due at Nhava Sheva on May 3. But the vessel instead ended up diverting south to the port of Colombo, Sri Lanka, likely to transship the Pakistani cargo to the U.S. East Coast. That report also said that the CMA CGM Bianca vessel en route to Mundra turned back on May 1 to Pakistan to offload cargo it previously picked up in the country. Erik Rosica, account executive at OEC Group, said Thursday that ocean carriers will have to reroute vessels or create new sailings as the restrictions linger. 'It's going to create another space issue,' Rosica told Sourcing Journal. 'It's going to be difficult getting vessel space, because there's probably going to be such a demand and a shortfall of space now that they're splitting the surfaces essentially.' Rosica said that most importers will be affected in a similar capacity regardless of which country they are picking up cargo from, but he noted that customers who need their goods quicker like those in high fashion, will suffer due to the adjustment period involved. Along with the delays the capacity problems would cause, as well as potential port congestion in hubs like Singapore or Colombo, shippers would likely have to deal with rising freight rates out of the south Asian neighbors. 'We've already seen rates on the rise from India in the last month or so,' said Rosica. 'There have been a regular increase over the past six weeks, so this will only exacerbate that situation. Unfortunately, customers now they have the tariffs to worry about, plus now the ocean rate will start coming up from that region.' Rates are bound to jump another way. The conflict has now resulted in CMA CGM announcing an $800 per container emergency operational recovery surcharge for Pakistani containers headed to Europe, the Mediterranean, the U.S. and Africa. The same surcharge will be applied to cargo entering Pakistan from Asian countries. A separate $300 per container surcharge is levied on containers headed to Pakistan from Europe, the Mediterranean, the U.S. and Africa, as well as those leaving Pakistan for Asia. The extra charges are effective May 15 for most trade lanes and June 6 for U.S., Latin America and Australia cargo. CMA CGM says the measure has become 'necessary,' as the ongoing geopolitical developments in the region, which have significantly impacted the liner's operations. 'The surcharge is essential to maintaining the continuity, safety, and reliability of our services during this period,' the company said in a customer advisory. Other major container shipping companies haven't established surcharges yet, but that will likely 'Once one car gets the ball rolling, the others kind of follow suit. If it looks like it's going to stick,' said Rosica. 'It's the same way with general rate increases (GRIs). A lot of times, MSC, because they're the biggest ocean carrier, would be the first to set a precedent for what an increase might be. Then the others will usually fall in line. But I don't think they're going to be the only ones.' Hostility between the south Asian countries escalated in the wake of the April 22 massacre of 26 tourists by Pakistani militants in the historically disputed Kashmir region. The tensions have further reached a boiling point, with India and Pakistan trading missile strikes across Wednesday and Thursday.
