Uptick in blank sailings as US and China trade tariff blows

Global supply chain managers are having to contend with more blanked container sailings as the world’s top two economies show no sign of giving ground in an escalating trade war.

China responded today to US president Donald Trump’s cumulative 145% tariffs, placing 125% tariffs on US products, effectively foregoing business between the two countries.

Chinese president Xi Jinping called on the European Union to join Beijing in opposing “bullying” from the US, saying “there are no winners in a tariff war”.

Shippers looking to get goods in from other manufacturing powerhouses, such as Southeast Asia, are now scrambling as the Trump administration has given them until July 9 before possibly raising tariffs around the world once again.

Liner shipping is watching the situation carefully, calibrating accordingly.

“We have seen an uptick in blanks announced in the last couple of weeks and spread out over the coming months,” said Simon Sundboell, CEO and founder of eeSea, a Danish liner analysis platform. Sundboell said the decision to blank sailings was down to general market uncertainty and weakening fundamentals.

“Carriers have started to blank out of China in particular again, as bookings dropped sharply,” commented Peter Sand, chief analyst at Xeneta, a Norwegian container rates platform.

“There is a straightforward effect of the trade war: lower demand. Carriers will act on this by blanking more sailings in the coming weeks and months,” Sand predicted.