Link Securities | According to Reuters, shipping agencies based in China have resumed purchasing container space for goods bound for the US after a series of cancellations imposed by US tariffs, as both governments prepare to begin trade negotiations. In this regard, the agency notes that trade between the world’s two largest economies has plummeted since US President Donald Trump imposed tariffs of 145% on Chinese-made products on 10 April, a move that led China to impose tariffs of 125% on US-made products.
In addition, Reuters continues, US tariffs, which affect approximately 80% of goods shipped from China to the US, caused a 60% drop in travel from China to the US in April, according to Flexport, a logistics and freight forwarding company. Customers of logistics operator Hapag-Lloyd (HLAG-DE) cancelled 30% of shipments from China last month. However, since the end of April, operators have stepped up their acquisition of shipping capacity, booking space from mid-May onwards, according to two shipping company executives.
