Container ships and shipping containers at the Yangshan deep waters port on October 18, 2024, in Shanghai, China.
Vcg | Visual China Group | Getty images
Apple’s iPhone and another technological hardware, from chips to PC, received a postponement of China Trump’s rates on Saturday, but during most of the US economy, the damage will soon be irreversible from the 145% rates in Chinese imports.
According to the executives of the supply chain, the cancelled freight orders and the abandoned burden of China are quickly becoming the standard in the commercial war between the United States and China.
“Furniture producers in China have stopped completely in the orders of American importers, and we are listening to the same toys, clothing, footwear and Akross sports equipment,” said Alan Murphy, founder and CEO of Sea Intelligence.
“We had the same in all Southeast Asia, but after the 90 -day respite, those reservations have been restarted,” said Brian Bourke, commercial director of Seko Logistics, of the reserves canceled for China containers.
“Almost everything is waiting since it is China’s businesses,” said Alan Baer, CEO or Ol USA.
“Trump’s total total rate on Chinese imports would stop most of the trade between the United States and China, economist Erica York, vice president of Federal Fiscal Policy at the Federal Federal Fiscal Policy Center, said Thursday on CNBCS” The Exchange. “
“There may still be some things without substitutions that companies only have to pay the invoice, but for the most part, that interrupts it,” York said.
As it was clear during the last week that China would continue to be the main objective of the Trump administration tariff policy, after the 90-day respite was awarded to all other countries that are expected to be affected with new tariffs, the message that the decline is the China of Bowwood Bowwalk-Margin. The new exemption for technology can be explained partially by how the supply chain works, but also reinforces where the greatest pain will feel.
“The most margin and more technical products, such as electronics, machinery, medical equipment and pharmaceutical products cannot easily move the supply, such as establishing a highly technical manufacturing time and considerable capital,” Murphy said.
Before the exemption of the technological rate, he says that the producers of these goods were analyzing which components could be obtained in the place, while mainly seeking American inventories in the short term. There is a arranged effort to transfer production to Southeast Asia, mainly Vietnam or India. They were also being considered to reduce prices to Europe to maintain production, or direct closure of production lines.
‘It is not a risk or load that small businesses can sustain’
Stephen Lamar, CEO of the American Association of Apparel & Footwear, said the sudden policy changes and high tariffs are interrupting supply chains to a level not from the pandemic.
“With prohibitively high rate levels in China’s American imports, many companies have no choice but to cancel orders,” Lamar said. “The constant change means that the new tariff costs do not occur accurately or predictable until the goods reach the port, and the high rates generate invoices that cannot be paid. That is not a risk or load that small businesses can sustain.”
Lamar said that without an alternative supply on the horizon for many of these companies, particularly small businesses, this sudden lack of orders will immediately translate lost sales and generalized shortage of products. “An extension of the War of the Commercial War to American imports of China is needed now before the damage is irreversible,” said Lamar.
The integrated logistics giant, Maersk, warned that on the side of the container coating business, the fall in reserves along with the possibility of naval construction rates in “Chinese” vessels also enter into force next week, Willa. Massive.
“And it will take months to resolve the disaster, with congestion peaks and freight rates in the coming months,” Maersk wrote to customers.
Murphy said that in all China’s headquarters his company has spoken, none is actively looking for production to the United States, and part of the lack of understanding of the final objectives of the administration.
“The biggest concern here is a complete uncertainty of the real final game of the Trump administration,” he said. “No one will consider massive investments in American production if tariffs are simply a ploy to negotiate better trade agreements. If the administration really pursues a goal of American reindustrialization, then the long -term plan for the rate or the YYyyyyyyyyyyy Uncertainty,” he added.
Putting on freight processing is a way to mitigate the impact of tariffs. Logistics suppliers can offer united storage, allowing the load to enter the US. Uu. Without a rate for a certain period of time. Foreign trade zones and delayed transits, as well as the products that are sent in relation or alreamy found in warehouses, are other methods.
“Current circumstances are not precedent,” said Karsten Kildahl, commercial director of AP Moller-Maersk.
Abandoned freight
The destination of the ocean and the abandoned air load, the load that the shipping company or the response of the load load or the response of the cargo carriers to pay customs on behalf of its client, is not changed to the port and governs.
Port officials tell CNBC that they are generally not notified or abandoned with load. The Conference of the New York Terminal Conference establishes that the load that dates back to the terminal exceeding 30 days will be considered abandoned and sold by the collection of delays charges due to the NYTC charges evaluated by leaving the freight or excessive time period. He also said that the final responsibility of the costs generally depends on specific shipping contracts. “If the BL (Bill of Load) has transferred the bones to the consignee, it is the responsibility of the sender. The charger could decide to go back the load (that is, re -export the load), destroy or donate it.”
Chargers generally prepare a “abandonment letter” for customs purposes so that the load is sold or auctioned, with sale/auction processes that pay any expense, such as the use of containers and chassis, and with the terminal.
The terminal can transfer the abandoned load to a warehouse united or leave it in the terminal and sell it from there. There is a market to buy abandoned load. Companions such as JS Position & Freight, FR8 AUCTIONS OR MERCHANDISE USA BUY ABANDONED LOAD and then sell it in discount stores, exits, liquidators, online vendors such as Amazon, drug chains, liquefies, buyers.
Maersk tells CNBC that many chargers are displaying a “wait and see” approach and recently alert to written customers that until there is a clearer image, the client is cautious about their inventory waters and the ways to explore continuous to combat fought forms. In its global warehouse network, distribution centers, port terminals, boats and load plans, “additional flexibility” is what many clients are looking for now, he said.
