Did You Know That…

…February slump raises red flag for container demand.

·Global container volumes in February fell significantly more than expected, with a 13.6% drop from January

·Container volumes up just over 2% in the first two months of 2025, marking a slowdown from 2024’s 6% growth

·US shippers may look to accelerate imports before July 9 deadline to dodge potential tariff hikes, increasing the likelihood of an early peak season 

·Trade war escalation could prompt global supply-demand balance to shift towards overcapacity.

Global container demand saw a significant downturn in February, exceeding the usual decline expected during the Chinese New Year period. Although overall year-to-date volumes remain slightly ahead of last year, the slowdown in growth is concerning. The Asia-Europe and transpacific trades showed resilience, but much of the latter’s growth is attributed to front-loading ahead of US import tariffs

…Pity American firms in China. Xi Jinping is hitting back. From Apple and Boeing to Nike and Starbucks, there is a lot of money at stake. Donald Trump’s heavy use of tariffs is rendering their supply chains untenable. Retaliation by the Chinese government threatens to unwind years of commercial success. On April 15th China’s aviation regulator told airlines to stop taking deliveries of aircraft from Boeing, according to Bloomberg, a news agency. The symbolism of the move will not be lost on American bosses in Shanghai or Beijing. American firms in China are still attempting to get a grip on what the future will look like. Tariffs on Chinese imports stand at 145%. On April 11th the White House announced exemptions on consumer electronics, to the great relief of companies such as Apple. Since then, however, the president has said these are temporary, valid until the results of a probe into semiconductors, electronics and pharmaceuticals.

…America is turning away China’s goods. Where will they go instead?

South-East Asia is exposed to both Chinese import competition and American ire. Once turned away, where will China’s exports to America go instead? As supply chains adjust, firms will expand abroad to qualify for lower tariffs, as many did in Mr Trump’s first trade war. Less scrupulous types may try to dupe American customs officials. But rerouting, legal or otherwise, is unlikely to offset a steep drop in demand from the world’s biggest goods importer. The rest of the world will make up much of the difference, whether it wants to or not.

…Rotterdam implements track and trace standard. Integration into port community system will assist with container tracking. Full-scale adoption of container tracking standard seeks to make port processes more efficient and transparent.

…Port fees to take stage in Trump’s US-China trade war opera.

·The US is set to announce port fees targeting Chinese-linked shipping, escalating trade tensions with China

·To maximise revenue, the Trump administration might lower the port fee rate but expand the scope of what is taxed

·Chinese yards have buckled up amid cancellations and pricing pressure as well as concerns of long-term market shifts toward rivals, such as India

·If pushed to the brink, Beijing may consider reciprocal port charges, which may add further strain to global trade and shipping.

As the US moves to impose targeted port fees on China-linked shipping, the industry has already felt the disruption. And if tensions escalate, the policy could provoke countermeasures that risk further fragmenting global trade.

…New USTR port fees threaten shipping and global supply chains, says Cosco. With the US Trade Representative (USTR) set to impose port fees on Chinese shipping lines and on Chinese-built vessels, Cosco could feel compelled to replace its box ships on transpacific routes by taking slots on vessels operated by fellow Ocean Alliance partners CMA CGM and Evergreen. The USTR 301 action announced on Thursday means that, from October, Chinese-built ships calling at US ports will be charged $18 per net vessel tonnage, or $120 per container discharged, whichever is higher.

…White House Considers Slashing China Tariffs to De-Escalate Trade War. Levies could be cut by more than half in some cases although Trump hasn’t yet made a final decision.

The Trump administration is considering slashing its steep tariffs on Chinese imports—in some cases by more than half—in a bid to de-escalate tensions with Beijing that have roiled global trade and investment, according to people familiar with the matter.

…In attached document you can find the conclusions of the workshop hosted by our fresh executive-board member mrs. Cecila Lee during the recent AGM in The Philippines. The theme of this interactive sessions was “'The Next Decade of Forwarding Industry”. The generic conclusions of the workshop related to the subject can be defined as follows:

• Embrace technology

• Embrace talent development

• Focus on personal contact, niches and innovation

• Strengthen the network dynamics and development

Feel free to share this information with relevant colleagues in your organization.

…A silk road in the Mexican skies. The Uzbek cargo carrier My Freighter and Aeromexico have launched a strategic interline partnership to boost cargo connectivity between Mexico and Central Asia.  

…Chinese officials are encouraging office workers not to work so hard. More free time means more consumption, they hope. For much of the Western world, the two-day weekend is sacrosanct. In China, the right to rest for two days each week is not a given. Many students say goodbye to the concept when they start high school. Overtime is sometimes compulsory for white-collar workers, especially in the go-go world of tech. In 2019 Jack Ma, founder of Alibaba, an internet giant, famously defended the “996” work culture—9am to 9pm, six days a week—as “a huge blessing”. But in recent months a new phenomenon has emerged, as big firms across China have begun to make employees leave the office earlier. Midea, an appliance giant, has launched a campaign against unnecessary overtime, sending workers home by 6:20pm each day. Its boss said: “More than 95% of overtime is performative.” Managers at dji, a drone maker, known for long hours, have started clearing the office at 9pm (the deadline drew criticism online for still being too late).

…Can the euro go global? With the dollar faltering, European policymakers have an opportunity.

…Response to tariffs by Chinese importers may see extra costs for US shippers. US exporters could face demurrage, detention, destruction of cargo, or return costs, after reports suggest some Chinese importers have stopped accepting cargo.  

… Magnitude 6.2 earthquake jolts Turkiye’s Istanbul. One person is reportedly injured from jumping off a balcony during the 6.2 magnitude quake. A strong earthquake has hit Turkiye, causing buildings in the city of Istanbul to shake.The quake, taking place earlier today in the Marmara Sea off the coast of Istanbul’s Silvri area, registered a preliminary 6.2 magnitude, reports Turkiye’s Disaster and Emergency Authority (AFAD).

…Bangladesh readies new air cargo facilities after ban by India. After India cancelled the use of its transhipment facilities for Bangladesh cargo, the government decided to launch an air cargo shipment facility from Sylhet Airport in north east Bangladesh. The first flight is expected on 27 April, when a freighter from lessor Voyager Aviation will leave Osmani International Airport carrying 56 tonnes of garment products for Spain.

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.

Have a good rest of the week !