Increase in Container Shipments Observed in April
Container Traffic Slightly Increases Amidst Trade Conflict
Container traffic saw a modest increase in April, despite ongoing international trade disputes, according to a flash estimate released by the RWI research institute and the Institute of Shipping Economics and Logistics (ISL) on Wednesday. The monthly container traffic index reached 137.3 points, up from 136.2 points in March.
The reported growth comes amidst the escalating trade spat between the United States and China, which culminated in a steep increase of 145 percent in tariffs on Chinese imports entering the US by mid-April. However, these tariffs have thus far only minimally impacted container traffic at US ports, as it takes up to two weeks for containers originating from China to arrive at these ports.
RWI chief economist Torsten Schmidt commented that the temporary boost in container traffic indicates a stable world trade so far amidst the rising trade tensions. He expressed concern, though, that the unpredictable nature of the US's trade policies could cause further harm to trade relations if long-term solutions are not found promptly.
The US and China agreed to a 90-day truce in May, which could potentially alleviate some of the tension and its effects on container traffic. However, the long-term impacts of the protracted trade war on global shipping and container traffic remain uncertain.
According to industry data, the US-China trade war has led to significant changes in container volumes and shipping dynamics over the years. Notably, container volumes into major US ports, such as Los Angeles, have drastically decreased due to the trade tensions and resulting tariffs. Additionally, there have been substantial increases in freight rates, with Shanghai to New York rates nearing $4,000 per container and Shanghai to Los Angeles rates around $3,000.
The conflict has caused disruptions in global supply chains, with frequent blank sailings and a reduction in capacity on key trade lanes. Over 80 blank sailings were reported in April alone, surpassing the disruptions seen during the COVID-19 pandemic.
As the trade war between the US and China continues to unfold, it will remain crucial to monitor its effects on container traffic and the global logistics landscape. This includes potential developments such as the planned phased port fees on Chinese-built or Chinese-owned vessels, scheduled to commence in October 2025.
The European Union, despite the escalating trade tensions with China and the US, has not experienced significant impacts on its container traffic, according to the latest data. The European Parliament, Council, and Commission continue to closely monitor the situation, understanding the importance of stable finance and business in the industry.
