As trade volume declines due to the tariff war between the United States and China, the number of blank sailings on the Asia-North America route is increasing.
On the 24th, according to maritime analysis firm Sea-Intelligence in Denmark, shipping companies expect a decrease of 367,804 twenty-foot equivalent units (TEU) in supply during weeks 16 to 19 of this year (April 14 to May 4). This is more than 12 times higher than the figure predicted in mid-last month (26,484 TEU). One TEU refers to one 20-foot container.
Sea-Intelligence analyzed that as tariff uncertainty continues, shipping companies and shippers are adjusting their supply chains which has led to a reduction in supply. The United States imposes a 145% tariff on imports from China, while China imposes a 125% tariff on imports from the United States.
Due to factors like the tariff war, maritime cargo volume heading to the United States has recently shown signs of slowing down. Last month, U.S. port cargo volume was 14,388,444 tons, which reflects only a 0.4% increase compared to the same period last year. In March of last year, U.S. port cargo volume increased by 2.1% compared to the same period the previous year.
Steven Lamar, representative of the American Apparel & Footwear Association (AAFA), noted in an interview with CNBC, "High tariffs and sudden policy changes are causing severe supply chain disruptions." Alan Beyer, representative of maritime transport company OL USA, also said, "Business related to China is almost entirely halted."
HMM, which has a significant share of the Asia-North America route, is also taking measures to adjust supply. Last month, the idle rate, referring to the percentage of container ships not in operation, was 0.7%, an increase of 0.1 percentage points from the previous month. HMM generated 36.5% (4.26 trillion won) of its revenue, which totaled 11.7 trillion won last year, from the North American route.
A source within the shipping industry said, "HMM will have no choice but to operate its fleet flexibly to meet demand."