Donald Trump\u2019s victory in the U.S. presidential election is \u2018a step in the wrong direction\u2019 for international trade, as importers fear another spike in ocean container shipping freight rates.<\/p>\n
Trump has vowed blanket tariffs of up to 20% on all imports into the U.S. and additional tariffs of 60% to 100% on goods from China.<\/p>\n
Data from Xeneta \u2013 the ocean and air freight intelligence platform \u2013 shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.<\/p>\n
Peter Sand, Xeneta Chief Analyst, said: \u201cShipping is a global industry feeding on international trade, so another Trump presidency is a step in the wrong direction.<\/p>\n
\u201cThe knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.<\/p>\n
\u201cIf you have warehouse space and the goods to ship, frontloading imports is the simplest way to manage this risk in the short term \u2013 but it will bring its own problems. A sudden increase in demand on major trade lanes into the U.S. when ocean supply chains are already under pressure due to disruption in the Red Sea will place upward pressure on freight rates.<\/p>\n