As the tariff war between the United States and China intensifies, cargo shipments from China to the U.S. have reportedly decreased by as much as 45%.
The Financial Times (FT) reported on 28th (local time) that shipping and air cargo from China to the United States have sharply declined, noting that the tariff war between the two countries has begun to impact the overall U.S. economy.
According to the report, after the U.S. government imposed a high tariff of 145% on imports from China, the number of container bookings from China to the U.S. has rapidly decreased. Supply chain data firm Vizyon noted that as of mid-month, bookings for 20-foot containers from China to the U.S. have decreased by 45% compared to the previous year.
The Los Angeles (LA) Port Authority expects that container volumes from China will decrease by about one-third compared to the same period last year in the first week of next month. Air cargo bookings have also reportedly decreased significantly.
John Denton, Secretary General of the International Chamber of Commerce (ICC), said, "The sharp drop in U.S.-China cargo volume shows that companies are delaying decisions while awaiting the outcomes of tariff negotiations," adding that "the cost of accessing the U.S. market will reach its highest level since the Great Depression of the 1930s."
U.S. importers are currently focused on depleting their inventories, and some are storing goods in bonded warehouses or routing them through neighboring countries while waiting for changes in tariff rates.
The cancellation of ship operations is also increasing due to reduced cargo demand. German shipping company Hapag-Lloyd reported that about 30% of bookings from China have been canceled, while Taiwan's TS Lines has suspended some routes from Asia to the U.S. West Coast. Shipping analytics firm Sea-Intelligence predicts that container bookings on the Asia-North America route will decrease by 400,000 next month.
The LA Port is also expected to see 20 vessel operation cancellations (approximately 250,000 containers) next month. The number of cancellations this month was six.