Trump's tariff plan to trigger huge surge in Asia-US freight rates
Posted on September 16, 2024 |
Trump's new import tariffs are likely to cause a rise in ocean shipping costs, similar to what happened during his first term as President.
The plan includes tariffs of up to 20% on all imports, with additional tariffs of 60% to 100% on goods from China.
In 2018, similar tariffs on Chinese imports led to a 70% jump in ocean shipping rates.
Between January and November 2018, freight rates on the China-US West Coast route rose from $1,503 to $2,604 per 40ft container.
From December 2023 to July 2024, spot rates from the Far East to the U.S. East Coast increased by 303%.
Spot rates from the Far East to the U.S. West Coast rose by 389% over the same time.
