Increase observed in container shipments during April
Container traffic slightly increased in April, a flash estimate from the RWI research institute and Institute of Shipping Economics and Logistics (ISL) indicated. The container traffic index reached 137.3 points on a seasonally adjusted basis, up from 136.2 points in March.
The growth in container traffic came amidst ongoing international trade conflicts, which have not significantly impacted the industry so far. The trade dispute between the US and China, leading to a substantial surge in tariffs on Chinese imports, has affected container traffic, but the impact has remained within the usual range in US ports.
As containers from China take around two weeks to reach US West Coast ports, further impacts are expected in May. RWI's chief economist, Torsten Schmidt, noted that the current impact on container traffic due to the US's unpredictable trade policy is limited. However, if lasting solutions are not found soon, the erratic course could harm trade with the US, according to Schmidt.
While the exact impact of the US-China trade dispute on container traffic in April and May is not specified in the RWI or ISL reports, other sources suggest that trade tensions continue to affect container traffic. Container ship traffic leaving China for the U.S. in the week ending May 1 plummeted 35.1% over the month after a surge in imports prior to the tariff deadline.
Trade flows between the US and China have also shown a reduction due to the ongoing trade tensions and tariffs, leading to disruptions in the supply chain and higher prices for US consumers. Small businesses heavily reliant on Chinese imports have expressed concerns about the ability to compete with products from other countries due to the tariffs.
Sources: ntv.de, rts.
- Despite the ongoing trade conflicts between the European Union and certain industries, particularly finance and business, the growth in container traffic indicates resilience within the global supply chain.
- The European Parliament, Council, and Commission are closely monitoring the US-China trade dispute and its potential effects on European industries, given the interconnectedness of global trade flows.
