Trade Tensions Redirect Global Shipping Routes

Amid escalating trade tensions between the U.S. and China, Hapag-Lloyd reported a 30% drop in shipments from China to the U.S., with increased demand redirected to Southeast Asian countries like Thailand, Cambodia, and Vietnam. This shift follows the introduction of steep tariffs under the Trump administration.

Hapag-Lloyd has noted a significant reduction in shipments from China to the United States, with a 30% cancellation rate amid the ongoing trade conflict between the global powers, according to a company spokesperson.

Tariffs imposed by U.S. President Donald Trump have intensified the economic clash, seeing tariffs on Chinese goods soar to 145% and 125% on U.S. goods in return. Despite maintaining the same number of passages, the shipping company is occasionally using smaller vessels to the U.S.

The International Monetary Fund has cautioned that these tariffs could dampen global economic output. Despite expressing optimism for a resolution with China, Trump warned of escalating measures if a deal isn't reached.

(With inputs from agencies.)