The global ocean shipping industry, responsible for 80 per cent of world trade, has been in the eye of the storm for a while now. The recent trade tensions fuelled by US policies are further disrupting supply chains and impacting major players.

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At the recent S&P Global TPM Conference in Long Beach, key stakeholders, including Walmart and DHL, are assessing the impact of tariffs, conflicts, and rising costs. Experts warn of an imminent slowdown and more volatility in freight rates. 

US trade policies hit global shipping outlook

Trump's tariffs onslaught is adding pressure to the already fragile shipping industry. The recent tariffs on goods from Mexico and Canada cover key exports like avocados, tequila, beef, and oil. Manufacturing raw materials like steel and aluminium also faces increased levies. The US trade representative has also proposed new port fees - up to 1.5 million dollars - for vessels built in China. Industry experts warn that these policies could increase consumer prices and disrupt global shipping networks.

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Beyond tariffs, other factors are reshaping global shipping. Severe weather events, driven by climate change, are increasing costs. Security risks have forced ships to bypass the Suez Canal, leading to longer transit times. Shipping companies are bracing for a 'trade war' storm, which could extend till 2025 and beyond. Retailers and manufacturers may absorb some of these expenses, but ultimately, consumers will feel the impact through higher prices on household goods, groceries, and fuel.