Latest news with #importdemand
Yahoo
17-07-2025
- Business
- Yahoo
Amid uncertainty, sliding Asia-US container rates are a sure thing
Weakening import demand and the global tariff war stoked by President Donald Trump continue to push down on container rates on critical Asia-U.S. trade lanes. Tariffs have resurfaced as a significant influence on consumer prices and freight costs, said analyst Freightos in an update, with inflation in the U.S. ticking up by 2.7% in June as the effects of import tariffs are beginning to manifest more who previously managed to mitigate these impacts through strategic frontloading in response to various global disruptions, including the pandemic and trade conflicts, are now facing the expiration of such buffers. Concurrently, the European Union is preparing to impose retaliatory tariffs on $84 billion worth of U.S. goods as Washington threatens 30% tariffs as of August 1. But Brussels has said it will delay those levies in hopes of striking a deal with the Trump administration. On the cost front, the freight rates are experiencing a distinctive trend. Despite disruptions like those in the Suez Canal, the reduced demand has kept ocean rates under pressure. The typical peak season has not spared the industry, as evidenced by a 24% reduction in Asia–U.S. West Coast rates to $2,369 per forty foot equivalent unit, while Asia–U.S. East Coast prices slipped by 5% to $4,888 per FEU. Moreover, Asia–Mediterranean freight prices fell by 4% to $3,802 per FEU. Asia–Northern Europe routes have defied this decreasing trend, with rates climbing by 4% to $3,509 per FEU as Asian manufacturers likely find new business outside the American market. The shipping industry has been quick to adapt, with carriers aggressively cutting trans-Pacific capacity by almost a quarter. This measure aims to align the supply with the diminished demand and stabilize the business, which has been reeling under the dual pressures of logistical barriers and price volatility. In regions beyond the immediate economic tussle, strategic investments and partnerships are forecasted to revitalize trade infrastructures. For instance, signs of economic reconstruction are visible in Syria, which has embarked on an $800 million partnership with UAE-based port terminal operator DP World to enhance its Tartous facilities. This development mirrors global logistics players seeking to capitalize on eased sanctions and potential new trade routes to establish footholds in burgeoning markets. Find more articles by Stuart Chirls White House maritime chief leaving Ports back bill to limit Customs charging for inspection services FMC investigating Port Houston pacts with container carriers June box record for Port of Los Angeles The post Amid uncertainty, sliding Asia-US container rates are a sure thing appeared first on FreightWaves.
Yahoo
15-07-2025
- Business
- Yahoo
Merchandise trade volume growth stronger than expected in Q1 2025, says WTO report
GENEVA (Reuters) -The volume of world merchandise trade grew more than forecast in the first quarter of 2025 from the previous three months, but growth is expected to slow, a new World Trade Organization report said on Tuesday. The volume of world merchandise trade rose by 3.6% in the first quarter of 2025 from the previous quarter and 5.3% year-on-year, due to a surge of imports in North America ahead of expected higher tariffs in the United States, the WTO report showed. "Merchandise trade volume growth in the first quarter was stronger than the WTO's most recent forecast, but WTO economists expect the pace of expansion to slow later in the year as fully stocked inventories and higher tariffs weigh on import demand," the report said. 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
Reuters
06-06-2025
- Business
- Reuters
China and India lead modest revival in Asia thermal coal imports: Russell
LAUNCESTON, Australia, June 6 (Reuters) - There are some tentative early signs that weak thermal coal prices are starting to boost import demand among Asia's heavyweight buyers China and India. Asia's seaborne imports of the fuel used mainly to generate electricity rose to a five-month high of 74.12 million metric tons in May, according to data compiled by commodity analysts Kpler. This was up from 68.56 million tons in April, although it was still below the 78.30 million tons from May 2024. For the first five months of the year Asia's imports of seaborne thermal coal were 346.96 million tons, down 7.0% from the same period in 2024. The decline was largely been driven by weaker demand from China and India, the world's two biggest importers of coal. China's seaborne imports of thermal coal were 116.62 million tons in the January-May period, down 13.6% from the same period in 2024, while India's were 71.07 million, a decline of 4.7%. China's appetite for seaborne coal has waned so far in 2025 after reaching a record in 2024, as strong domestic output and higher hydropower and renewable energy curbed coal-fired generation. The latest available data showed China produced 389.31 million tons in April, up 3.8% from the year-earlier month, while output for the first four months of the year was 1.58 billion tons, up 6.6%. India's domestic coal production has also been trending higher, with official data showing output of 86.24 million tons in May, up from 83.96 million in the same month last year. Asia's seaborne coal prices have been sliding in response to the higher domestic output in China and India, with grades from both top exporters Indonesia and Australia hitting four-year lows. Indonesian coal with an energy content of 4,200 kilocalories per kilogram (kcal/kg), as assessed by commodity price reporting agency Argus, dropped to $46.20 a ton in the week to May 30, down from $47.46 the prior week and the lowest since April 2021. The grade , which is favoured by both Chinese and Indian buyers, has been trending lower since October 2023, and is now down 25% over that time period. Australian coal with an energy content of 5,500 kcal/kg dropped to $66.84 a ton in the week to May 30, the lowest since late May 2021 and a drop of 37% from October 2023, when it started its current downtrend. This grade is largely favoured by Chinese buyers, as utilities in Japan and South Korea prefer higher quality coal. Certainly China's imports of Australian thermal coal have ticked up in recent months, with Kpler data showing arrivals of 6.39 million tons in May and 7.01 million in April, up from the 4.17 million In March and February's 3.63 million. It's possible that China's import demand is responding to the lower seaborne prices, and there is also the seasonal pattern of higher imports as the summer peak for electricity consumption comes closer. India's imports of thermal coal rose to 17.84 million tons in May, up from 15.31 million in April and the strongest month since October 2023. The gain in May arrivals was largely due to increased imports from Indonesia, which supplied 10.24 million tons, the most since May last year. It's also worth noting that India's imports of Russian thermal coal reached a two-year high of 1.39 million tons in May, according to Kpler, rising from 1.14 million in April. They had not been above the 1 million tons per month level since June 2023, and the recent increase has largely been shipped from Russia's Pacific ports, rather than from those in Europe. This suggests that Russian coal in the Pacific is once again becoming price-competitive against Australian grades, and McCloskey World Coal's assessment of 6,700 kcal/kg fuel at Vostochny port does support this view. Russian coal was assessed at $73.26 a ton in the fortnight to June 2, up from the 54-month low of $68.13 the prior two-week period. Once adjusted for energy content differences and freight, it's likely that Russian and Australian cargoes are very closely matched for Indian buyers. The overall picture for seaborne thermal coal in Asia is that the declining prices may finally be leading to some uptick in demand, but it's also likely that low prices will have to persist to keep importers interested. The views expressed here are those of the author, a columnist for Reuters.
