Trump trade threats compound global ocean shipping uncertainty

The global ocean shipping industry is facing uncertainty due to the geopolitical and trade tensions raised by U.S. President Donald Trump, including proposed tariffs and fees on goods from China, Mexico, Canada, and the European Union. These actions, along with potential impacts from climate change and geopolitical tensions, are affecting international trade and the negotiating positions of container ship owners. The proposed fees on Chinese-built vessels entering U.S. ports could have significant financial implications for container carriers and consumers, leading to potential increases in consumer prices for a wide range of goods.

The global ocean shipping industry that handles 80 per cent of world trade is navigating a sea of unknowns as U.S. President Donald Trump stokes trade and geopolitical tensions with historical foes as well as neighbours and allies. That is the backdrop for this week’s S&P Global container shipping and supply chain conference in Long Beach, California, an annual event that marks the start of container shipping contract negotiating season. Attendees this year include industry heavyweights like container carriers MSC, Maersk and Hapag-Lloyd, marquee customers including Walmart, and major logistics firms including DSV and DHL. These companies will be grappling with the ripple effects of increased protectionism, which could reduce international trade while weakening the negotiating position of massive container ship owners that have drawn robust profits and for years held the upper hand in pricing. Trump has already slapped an additional 10 per cent tariff on goods from China, the ...