TRUMP’S TARIFF’S PROMPT EARLY SHIFTS IN SUPPLY CHAINS
Trade data shows that China reacted to the threat of tariffs even before 2 April with supply chains experiencing change in Q1 this year ahead of ‘Liberation Day’. Container trades are undergoing a major overhaul as Washington’s tariff regime reshapes the trading landscape and that in turn is seeing major supply chain upheavals. Freight rate trends being experienced now have their roots in the last November’s election in which Donald Trump emerged as president of the US, pledging to manage America’s major trade deficits with its trading partners.MDS Transmodal and Seatrade Maritime News aim to monitor and track the evolution of supply chains as tariffs transform trade, trading patterns and partnerships. This involves the monitoring of a number of key export countries, including China, Japan the EU and Vietnam and some key commodities from those regions. Furniture and furniture parts exported to the US had already
fallen by 9.6% in Q1, year-on-year, a decline of more than 152,000 tonnes to the American market. Exports to European markets, meanwhile, increased by more than 20% in the UK, Netherlands, Germany and Poland and by 19% to France.
TRADE BY-PASSING US SAYS DHL GLOBAL FORWARDING
As the US contemplates the end of Washington’s China tariff pause on 9 August the rest of the world has continued to grow its trading relationships according to the latest DHL Ocean Freight Market Update.US imports have shown significant declines over the last two months with Blue Alpha Capital consultant John McCown expecting the slowdown in trade to be extended unlike previous times when demand has eased, which were short-lived.“Trade is finding more receptive paths and increasingly bypassing the US market. China’s exports to the US declined by 9.7% this year, while shipments to the UK, ASEAN, and Africa grew by 7.4%, 12.2%, and 18.9%, respectively. Asia-Europe rates have also overtaken Transpacific prices for the first time in 2025,” said the DHL Global Forwarding report. Since the 2018 tariffs were introduced, China has re-routed trade, hedged against the dollar-based financial system and accelerated technological developments and has hit back with greater export controls. Last month Beijing announced that it will extend tariff free trading to 53 of 54 African nations; it excluded Eswatini which recognized Taiwan.
MAERSK LAUNCHES NEW CARIBBEAN – NORTH EUROPE SERVICE
Maersk is launching of a new service connecting the Caribbean with Northern Europe – CAX- to strengthen its maritime network in Latin America. The service CAX will replace the current CRX and COEX routes and is designed to offer greater reliability, efficient transit times and expanded connectivity in key markets, said Maersk. CAX will have a port rotation that includes stops in Antwerp – Southampton – Hamburg – Bremerhaven – Newark – Manzanillo (Panama) – Puerto Antioquia – Puerto Moín – Manzanillo (Panama).The port terminal in Antioquia, Colombia, will be served by a feeder service connecting to Manzanillo (Panama) until the new facility is fully operational, which is scheduled for 1 November. CAX will begin operating on 26 September, heading north with the departure of the Monte Linzor from Puerto Moín. From 29 September, it will begin operating southbound with the departure of the Maersk Monte Alto from the Antwerp maritime terminal. Other changes will be implemented in September when Maersk’s CLX service will add Santa Marta-Magdalena (Colombia) as the last port in Latin America and Southampton as the first port in Europe. In addition, the rotation between Rotterdam and Antwerp will be exchanged.
China could block sale of port terminals: Report
The sale of global port facilities to U.S.-based investor BlackRock and Mediterranean Shipping Company by Hong Kong’s CK Hutchison could be blocked by China, unless shipping company Cosco is included, according to a Wall Street Journal report citing anonymous sources. Hutchison said in March it planned to sell its 80% share of port terminals through subsidiary Hutchison Port Holdings at 43 ports in 23 countries for $22.8 billion. The company is controlled by billionaire Li Ka-shing. The prospective sale would include terminals near the Panama Canal, the waterway President Donald Trump said is a strategic priority for the United States. Based in Geneva, MSC is the world’s largest container shipping line, with more than 800 ships and capacity of 5.6 million twenty foot equivalent units (TEUs). The newspaper reported that BlackRock, MSC and Hutchison are amenable to a Cosco stake. Hutchison, BlackRock, and MSC did not immediately respond to requests for comment. Messages left for the White House and Chinese media office were not immediately returned. The report added an agreement is not expected before a July 27 deadline for exclusive talks among BlackRock, MSC and Hutchison, the report added.