Did You Know That…

…Containers: uncertainty reigns as tariff turmoil and overcapacity looms.

·A 90-day US-China tariff reprieve offers short-term relief and financial reward for carriers, but trade war instability continues to cloud the market

·Excessive additions to the liner orderbook threatens to destabilise the market

·Prospect of Red Sea reopening later in the year could flood the market with latent capacity, exacerbating an already dim picture of overcapacity.

Container shipping in 2025 remains volatile, with Trump’s trade policies fuelling uncertainty. While the global trade war dominates headlines, a more pressing and all too familiar issue looms: overcapacity.

…China is celebrating victory against American trade warriors. But its negotiating triumph comes with two stings in the tail. America will slash the “reciprocal” tariffs on Chinese goods from 125% to 10%, for at least 90 days. That puts China in the same position as other countries, none of whom struck back at America. An earlier additional levy of 20% designed to punish China for its role in the fentanyl trade will remain in place, but its specificity suggests it could be negotiable. America more than halved a separate 120% tariff on e-commerce packages valued below $800 that enter America via a separate “de minimis” customs regime. In return China will cut tariffs on American goods to 10%. It lifted its ban on importing Boeing aircraft, which it needs. Constraints on rare-earth exports may be eased. The result, it is claimed, is proof America cannot stomach a fight. Americans can’t cope “when their supermarkets run out of goods,” wrote one netizen under a statement about the deal posted by the American embassy on social media.

Chittagong, Kingston, Tema head global port delay rankings.

…European port congestion now at five-to-six days, and getting worse. European port congestion continues to worsen, with workforce constraints “exceeding forecasts” in Bremerhaven, and stakeholders having “very limited” options, according to a source.

…Fifty years ago the last Americans were evacuated from Saigon, leaving behind a war-ravaged and impoverished country. Today Saigon, renamed Ho Chi Minh City, is a metropolis of over 9m people full of skyscrapers and flashy brands. You might think this is the moment to celebrate Vietnam’s triumph: its elimination of severe poverty; its ranking as one of the ten top exporters to America; its role as a manufacturing hub for firms like Apple and Samsung. In fact Vietnam has trouble in store. To avoid it—and show whether emerging economies can still join the developed world—Vietnam will need to pull off a second miracle. It must find new ways to get rich despite the trade war, and the hard man in charge must turn himself into a reformer.

That man, To Lam, isn’t exactly Margaret Thatcher. He emerged to become the Communist Party boss from the security state last year after a power struggle. He nonetheless recognises that his country’s formula is about to stop working. It was concocted in the 1980s in the doi moi reforms that opened up the economy to trade and private firms. These changes, plus cheap labour and political stability, turned Vietnam into an alternative to China. The country has attracted $230bn of multinational investment and become an electronics-assembly titan. Chinese, Japanese, South Korean and Western firms all operate factories there. In the past decade Vietnam has grown at a compound annual rate of 6%, faster than India and China.

…Our esteemed member OTA (Overseas Transit Agency) in Pakistan is now IATA certified. Find the certificate attached for your information & records. OTA team are now fully prepared to cater for all air enquiries from the EAA members and are geared to ensure top quality service to one and all at EAA Group. Not only OTA’s management will be involved in providing with the required services but the main point of contact/person for all AIR ENQUIRIES will be Mr. Ahmed Anees [air@otaship.com], the BDM Mr. Aamir Zaman [impdept@otaship.com] & MS Fiza Khan [snp@otaship.com] who will be available to attend to any/all enquiries.

…Following a round of talks in Geneva, America and China agreed to pull back from their trade war and slash tariffs, for 90 days at least. Before the breakthrough in Geneva, America struck a trade deal with Britain.

…Transpacific rates spike but Walmart warns that China tariffs are ‘still too high’.

·SCFI Shanghai-US west coast assessment jumps 32% week on week; Shanghai-US east coast rates rise 22%

·Drewry WCI assessment for Shanghai-New York increases 19% over prior week; Shanghai-Los Angeles index gains 16%

·Walmart, America’s largest containerised goods importer, says it will be forced to raise prices and limit purchases of certain items.

The China-US container trade has suddenly flipped from famine to feast. How long this lasts hinges on how American importers manage the remaining tariffs.

…Sales of Tesla cars again fell heavily in Europe in April. In Germany they were down by 46%, year on year, and in France by over 50%. And in Britain, which had hithereto resisted the continent’s rejection of Tesla and Elon Musk, sales plunged by 62%.

…Colombia’s president, Gustavo Petro, announced that his country will join China’s Belt and Road Initiative, a vast network of development projects. The symbolic shift towards China by a traditional ally of the United States will irritate the Trump administration.

…Normally associated with assembling the iPhone, Foxconn made a big push into the electric-vehicle market by striking a deal with Mitsubishi. The cars will be made in Taiwan for sale in Australia and New Zealand.

… The first edible ice cream was made in China out of rice and milk, which was then cooled in the snow.

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

Have a good weekend !