Shipping chaos: insight into the US China trade conflicts industry

Shipping chaos: insight into the US China trade conflicts industry

When the metal bridge is lowered, the crew begins to secure the ship on the dock - its bright orange overalls work compared to the huge pink container ship, one modern, almost tiny.

rapid unloading and loading in Hong Kong

As soon as the ship is securely attached, a race against the time when three crane operators aim at load more than 700 containers from the port of Hong Kong in less than 10 hours.

The global race against the time

For the countless companies worldwide, which are in the same location, there is a much larger race at the game: the massive operation was to be transported from China to the USA before the break expires to the higher tariffs caused by the former US President Donald Trump on August 12th.

high uncertainty in the trade

"The indices for unpredictability and chaos are actually at an all -time high," Roberto Giannetta, chairman of the Hong Kong Liner Shipping Association, told CNN. "This instability creates a lot of chaos."

negotiations between the USA and China

Last week there were negotiations between the United States and China in London, which led to an agreed framework for a trade level, so officials on both sides report.

The effects of trade wars

But the companies that have to struggle with these changing trading policies at the forefront do not take any risk. China is the second largest trading partner in America, directly to Mexico. The trade between the two countries exceeded $ 688 billion last year, reported Chinese data.

changeable trade rules make planning more difficult

"The rules change three times a week," said Rick Woldenberg, CEO of Learning Resources, an educational toy company based in Chicago. "We have absolutely no idea what the rules will look like when the product arrives."

The effects of tariffs on the global supply chain

When the USA announced comprehensive tariffs on most countries on April 2, this led to chaos in the complex global supply chains that enable the free flow around the globe - especially in the shipping industry, which transports 90% of all consumed goods.

preparation for uncertain times

Despite a separate 90-day break regarding most tariffs, the company managers say that they have to operate as if the tariffs are being returned.

goods camp during the trading talent

US companies tried to store goods during the peace period, which stimulated the Chinese factories in order to cover the demand, and the shipping companies brought as much as possible in the current time window.

planning uncertainty and cost increase

"Companies want to prepare because they simply don't know what reality will look like in just a few weeks," said Jens Eskelund, the president of the EU Chamber of Commerce in China. "It makes it very difficult to plan, it creates inefficiencies and ultimately the costs will increase."