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US and China Trade War and the Impact On International Shipping
09 Sep, 2019

Here at BYEXPRESS Worldwide, we’ve watched the recent developments in the global shipping industry especially as it relates to the current trade tension between China and the US. What does this mean for trade between both countries, and most especially, how is this likely to impact the global shipping industry? Let’s find out.


U.S. - China Trade Tension

These are not the best of times for trade relations between the United States and China. Trade relations between both countries have gone sour in recent times with both sides imposing heavy tariffs on imports in the aftermath.

The trade tension between these two largest economies in the world grew with more intensity during the past year after the United States imposed tariffs on about $250 billion of Chinese imports. China, as a result, has also enforced tariffs on about $110 billion of U.S. products.

After a lengthy period of instability, it seems there is hope in sight. Recent news has suggested that both countries may finally reach a deadline in resolving the ensuing tension. 

While uncertainty still surrounds the long-term impacts that this will have as regards exports to China from the US, the shipping and logistics industry is already bearing the brunt of the tension between both economies.

How the Trade Tension Would Impact the Logistics Industry

At BYEXPRESS Worldwide, we’ve evaluated what these recent developments may mean for the global shipping industry. The tariffs imposed are spread over a wide range of products and as expected, the negotiations between both countries are leading to great ambiguity. 

While the consequence has yet to be seen on the supply chain and the various international ports, the tariffs imposed so far seems to be spread over all consumer products imported from China with no single exception. 

Products like these, shipped from China are always transported as containerized cargo. It is expected that this will have a material adverse impact on the industry. The East-West shipping will likely feel the most impact of these tariffs. 

Tariffs that affect the container and shipping industries will also affect both US and China-based shipping companies negatively. We can only hope that negotiations between both countries can kick off soon while still hoping that they reach a favorable agreement that won’t provoke further escalation. In anticipation of the negotiations, the shipping industry will probably not take any action or reaction just yet. 


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