Container freight from China to the United States increased sharply last year due to uncertainties in trade tensions between China and the United States. That’s because Chinese exporters were eager to ship goods to U.S. ports before the new tariffs were introduced, but the data suggest that this trend may soon lose momentum.Container freight
Last year, two of the world’s largest economies, China and the United States, were in a tit-for-tat tariff struggle, levying hundreds of billions of dollars worth of tariffs on each other’s imports over the past few months. Increasing fears of a full-scale trade war have prompted exporters to push forward shipment dates.
In fact, the latest weekly container report released by Freightos, the online freight market, shows that, compared with the same period last year, container freight between China and the United States has increased by more than 100% since the beginning of December, and the peak shipping season on both sides of the Pacific has been a huge asset, still doubling the freight price last year. China’s freight rates to the West Coast of the United States soared 128 percent, while those to the East Coast of the United States soared 123 percent, compared with an 11 percent increase in China’s freight rates to Nordic Europe due to shipments on Christmas Eve.
According to CNBC and Reuters, the US tariff on $200 billion imported goods from China was scheduled to rise sharply on January 1, but at the Sichuan Fair earlier this month, the two sides agreed to cease fire for 90 days and will not impose tariffs for the time being. However, both analysts and markets are sceptical of a lasting truce between the two major economic powers, China and the United States. For several months, supply chain management departments in various industries have been in a tense state for several months. Exporters and logistics executives have confirmed that trade routes have changed as factories rush to fulfill orders before tax increases.
Despite a surprising rise for most of this year, China’s data show that the Chinese economy is now under some pressure.
In November, China’s manufacturing growth stagnated for the first time in more than two years as new export orders fell, according to an official survey of large enterprises. A private survey confirms that export orders of SMEs are also shrinking.