27 May Rollback Of USA China Tariffs Sees Shipment Surge
In the latest developments in the trade war between USA and China, reduced tariffs of 30% and 10% have been respectively announced, alongside a rollback on some of the steeper tariffs, giving both sides 90 days to continue negotiations.
Regardless of the de-escalation of the trade war, the initial impacts have already been felt across both economies, such as a fall in US GDP as businesses rushed to import goods, as well as reduced factory activity and exports from China.
The tariff pause has also seen US companies take advantage of this 90-day reprieve to catch up on shipments and get as many products into the USA as possible during this time. Subsequently, freight bookings out of China have increased by approximately 300% compared to the week earlier, reaching unprecedented levels for this year.
This surge, combined with the average transit time of a month, plus the limited number of ships, has the potential to result in supply chain bottlenecks in the coming months and increases the probability of higher shipping rates.
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