Did You Know That…

…A new survey from the news outlet Tech.co reveals that 66 % of US logistics firms have already been impacted by recent tariff changes. The measures include a 145% duty on China-US imports and the end of the de minimis exemption on packages below USD 800. As a result, 58% of respondents say they are expecting a rise in vehicle and equipment prices.

…Chinese exporters turn to 'origin washing' to dodge steep Trump tariffs. Chinese exporters are using repackaging, mislabeling, and rerouting tactics to avoid steep Trump-era tariffs, raising alarm across Asian trade hubs and customs agencies. As US President Donald Trump intensifies trade restrictions on China, Chinese exporters are resorting to increasingly sophisticated — and often illicit — methods to bypass them. After Washington imposed tariffs of up to 145 per cent on imports from China, reports of origin washing, rerouting, and product mislabeling have surged. Social media ads offer 'origin washing' services. According to a report by the Financial Times, Chinese social media platforms are now filled with ads offering ‘place-of-origin washing’ services. These include repackaging goods, relabeling items, and producing fake certificates of origin to help products enter the US market while evading tariffs.  One exporter from a southern China lighting firm said companies are rerouting shipments through countries like Vietnam or Malaysia. Under “free on board” (FOB) terms, liability transfers to the buyer once the goods leave port, shielding the exporter from legal exposure.

…America has given China a strangely good tariff deal. For the next 90 days, at least. After a busy weekend of talks in Geneva, an impatient reporter asked when the results would be announced. Li Chenggang, China’s trade representative, replied with a smile and an old saying: “Good food is never too late.” The dish, when it at last arrived on May 12th, was surprisingly tasty. America has agreed to cut the “reciprocal” tariffs it imposed on China last month from 125% to a more digestible 10% for at least 90 days. China has agreed to do the same. It has also agreed to roll back other retaliatory measures, such as restrictions on sales of rare-earth minerals.

…US-China trade war de-escalation was expected — but not this fast.

·Container liner shares surge and most shipping shares rise as US and China bring tariffs back to pre-Liberation Day levels

·US importers are expected to heavily front-load cargoes during tariff pause, leading to a ‘shorter, sharper’ peak season

·High degree of uncertainty remains on future tariffs, and even at reduced levels, cargo shippers will face higher tariffs than they did previously.

If there’s one thing that’s for certain in Trump 2.0, it is that there’s no certainty on tariffs. The magnitude of the reversal in US-China tariffs announced on Monday turned out to be much larger than expected.

…China-US trade tariff pause could drive a rebound for transpacific rates. After the US and Chinese governments agreed to slash reciprocal tariffs, shipping lines are expecting an early peak season on the transpacific eastbound trade, and have announced surcharges of $1,000-$2,000 per 40ft. Peak season is traditionally between July and September, when US and European retailers stock up with goods from Chinese factories for the Thanksgiving and Christmas holiday seasons.

…Carriers hike transpacific rates to ride trade détente shipping surge.

·Carriers are hiking transpacific rates amid a perceived volume surge during the 90-day US-China tariff truce

·Maersk says it’s helping clients to ‘make the best use’ of the 90-day window

·Some carriers have raised freight rates from China to the US west coast to $3,000 per feu starting May 15, up from the current level of below $2,500

·For June departures on this trade lane, some spot rate offers have already exceeded $6,000 per feu.

Container lines are sharply increasing transpacific freight rates — some exceeding $6,000 per feu for June departures — as shippers rush to move cargo during a 90-day US-China tariff truce, fuelling a short-term rate surge driven by pent-up demand.

…Container futures rally as US-China trade hopes outweigh Red Sea ceasefire.

·Shanghai freight futures jumped, led by the August contract, on optimism over upcoming China-US trade talks

·Investors largely ignored Red Sea ceasefire news, seeing limited immediate impact vessel routing

·Analyst says the rally was sentiment driven, with Asia-Europe trade remaining under pressure from an oversupply of vessels, regardless of changes on transpacific routes.

Shanghai container freight futures rallied on optimism over revived China-US trade talks, as traders largely brushed aside Red Sea ceasefire news and persistent overcapacity on Asia-Europe trades.

…Maersk's posts $1.3 bn Q1 profit, geopolitical tensions cloud outlook.

…Maersk sees 30%-40% drop in China-US trade and ‘race’ for inventories.

·Demand weakness is centred in US; volumes in other trades still growing at around 4%

·Ocean carriers are showing much greater rate discipline during current disruption than at the tail end of the pandemic boom

·US importers are drawing from inventories in Canada and Mexico and seeking import replacements from domestic distributors.

Maersk’s chief executive describes a scramble by US businesses to replace Chinese goods and keep inventories from depleting. If there is no thaw in the US-China trade war by this summer, time will run out, raising the risk of a recession.

…Suez Canal touts 15% discounts to entice shipping back to the Red Sea.

·Suez Canal Authority is on an industry charm offensive trying to lure shipping companies to return to the Red Sea

·Box ships will receive a 15% discount in transit fee from Thursday for a 90-day period

·Egypt saw a $7bn drop in revenue during 2024 and losses are mounting.

Several major shipping companies have been tentatively returning ships to the Red Sea amid positive security developments, but the Suez Canal Authority is keen to accelerate that trend and is now offering owners incentives to return.

…Shipping lines start to bypass Karachi as India-Pakistan tensions rise.

·Some carriers have diverted from Karachi as India-Pakistan tensions escalate, with cargo being rerouted via Colombo and Singapore

·New restrictions affect vessel movements, especially those carrying Pakistani cargo or calling at both Pakistani and Indian ports

·Maersk says it will evaluate potential structural network changes, should restrictions extend.

Container carriers are rerouting shipments and avoiding Karachi port amid rising India-Pakistan tensions, as safety concerns and emerging trade restrictions disrupt regional shipping operations.

…Carriers impose 'emergency operation' surcharges on Pakistan cargo. Pakistan trade, hit by Indian port access restrictions, now faces a wave of emergency surcharges from container lines.The latest moves come from MSC — a hefty $800 per container fee for all Pakistan exports on major westbound routes, which include Europe, the US and Africa markets. The carrier has also announced an extra $300 per container charge for intra-regional trades, including the Middle East and Indian subcontinent.

…Toll Group has acquired Australian based Transolve Global, our EAA member in Australia and New Zealand and specialist in international freight forwarding of wine, bulk liquids, and perishables.Transolve will operate as a separate brand within the Toll Global Forwarding division.

…Hong Kong’s richest man is caught between China and America. Li Ka-shing’s ports on the Panama canal have drawn fire from Donald Trump. TO HONG KONGERS, Li Ka-shing is a 97-year-old “Superman”, the tycoon who can turn any crisis into a business opportunity. To pro-Beijing media in the city he is the “Cockroach King”, a traitor who spurns his “patriotic” duties. And Donald Trump seems to consider him an agent of Chinese imperialism: a facilitator for the “soldiers” who are “lovingly, but illegally, operating the Panama Canal”, the American president insists. Mr Li has amassed a $37bn fortune by walking a tightrope between East and West. But recently Hong Kong’s richest resident has risked a heavy fall. He founded CK Hutchison (CKH), a conglomerate he handed to his son, Victor, in 2018, but still advises and which his family is the biggest shareholder in. It operates, among other things, a vast network of ports—including the two at either end of the Panama Canal, a waterway that handles around 5% of global maritime trade. That has made him a target for Mr Trump, who seems to think that CKH’s involvement means “China operates the Panama Canal”. (In fact Panama does, after regaining full control from America in 1999.)

…Saade holding company buys stake in Pathe cinemas. Billionaire Rodolphe Saade's family holding Merit France has acquired a 20% stake in French cinema chain Pathe for an undisclosed amount, privately owned Pathe said on Monday. WHY IT'S IMPORTANT. Saade and his shipping company CMA CGM have already become leading players in the French media landscape in recent years, buying up several newspapers as well as Altice Media, which owns 24-hour news channel BFM TV.

…New MSC service calls at BCT. Baltic Container Terminal (BCT) in Gdynia (Poland) has been added to MSC’s Britannia Ocean Service, linking Asia directly with Northern Europe. The rotation includes Shanghai, Ningbo, Yantian, Vung Tau, Rotterdam, Hamburg, Antwerp and Liverpool.

…The port of Gothenburg has trialled a hydrogen-powered generator that supplies the 'Stena Scandinavica' with electricity via an underground cable, thus supplying electricity to docked ferries in a two-week pilot project. At Stena Line’s terminal vessels such as the 'Stena Germanica' and the 'Stena Scandinavica' received emission-free power using 100% green hydrogen provided by Linde Gas.

…The bridges depicted on euro bills were dreamt up. Then a Dutch designer had them built for real in Rotterdam.  

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

Have a good rest of the week !