Import Tariffs Affect Exports

Since COVID, logistics have been unpredictable and erratic. Many new ships have been deployed, container shipping has avoided the Suez canal since early 2024, a labor strike in the US and Canada was disruptive, the shipping lines have reorganized their alliances, and now the onset of tariffs is affecting trade patterns.

The threat of tariffs alone prompted significant increases in early bookings to the US before tariff implementation. Additionally, importers that were able to do so shifted production to alternate countries to avoid the tariffs. Further, many importers have cancelled bookings from China. With the loss of cargo from Asia, the shipping lines are cancelling (or “blanking”) voyages. Traffic into Los Angeles is down by 35%; port data reports an overall 64% decrease in US imports overall. 

The direct impact on exporters is both a result of shortage of containers and shortage of vessels, as well as vessels being displaced around the world. These factors have multiplied to increase the challenges of making bookings. 

Despite the tariff settlement announced Monday, it will take weeks for the supply chain to normalize.Moreover, a swell of arrivals coming as importers seek to restock is expected to produce congestion at the ports as seen during COVID. 

As always, SLG is working diligently to move your cargo, and we don't want you to be caught unaware when containers and bookings are scarce. Lord willing, this too shall pass. Be apprised that freight rates and trucking costs are likely to be volatile and increases may be expected as shippers compete for equipment and space.

Special Logistics will continue to monitor these issues and respond as they arise. As usual, we encourage early booking. Please advise if you need additional help. We value our partnership and believe in your cause. 

As always, we stand by to assist.