Tariffs

It goes without saying that day-to-day cost pressures come with the territory in the procurement world. But that sentiment takes on a more heightened feel, when seeing those pressures from the perspectives of chief procurement officers (CPO), in light of myriad economic- and trade-related challenges, among other factors.

September shipments­, at 1,037,316, were off 1.7% annually, and on a year-to-date basis, shipments through September, at 9,252,633, are up 1.2% compared to the first nine months of 2018.

In 2018, the report said that global parcel volume came in at 87 billion, which was up 17% compared to 2017’s 74 billion and the highest ever recorded since the index has been published. What’s more, despite a high level of uncertainty in regards to global trade, it expects this tally to more than double to 200 billion parcels by 2025, coupled with a 13.7% compound annual growth rate from 2019-2023.

It’s probably a pyrrhic victory, but transport interests recently gained a small victory in President Donald Trump’s growing trade war with China. The Office of the U.S. Trade Representative recently ruled that 53-foot domestic containers from China have been exempt from the punishing tariff war between the world’s two largest economies.

August shipments, at 1,095,208, eked out a 0.1% annual gain, and on a year-to-date basis, shipments through August, at 8,212,273, are up 1.5% compared to the same period a year ago.

Tariff activity and trade tension between the United States and China continue to dominate import activity, according to the most recent edition of the Port Tracker Report, which was issued today by the National Retail Federation (NRF) and maritime consultancy Hackett Associates.

When it comes to the seemingly never-ending state of the United States-China “trade war,” which has seen each nation, in a sense, attempt to out do each other, in the form of a game of levying and retaliating to tariffs, it is becoming more apparent that these actions are increasingly more and more likely to impact both consumers and retail supply chains.

July shipments, at 1,120,131, posted a 1.5% annual gain, and on a year-to-date basis, shipments through July–at 7,112,696 ––are up 0.1% compared to the same period in 2018.

The trade war, in a sense, has become an extension of an ongoing “quest” for shippers to truly be ready for anything.

While the USTR indicated that the September 1 tariff remains on schedule, it also noted that certain products are being removed from the tariff list “based on health, safety, national security, and other factors and will not face additional tariffs of 10 percent.”

Total POLA volume––at 912,154 TEU (Twenty-Foot Equivalent Units)––was up 9.43% annually and hit a new single month volume record for the fourth consecutive month, and total July POLB volume––at 621,780 TEU­––saw a 9.7% annual decline.

President Donald Trump abruptly escalated his trade war with China, announcing that he would impose a 10% tariff on $300 billion in Chinese imports that aren’t yet subject to U.S. duties after setbacks in negotiations with Beijing.

When President Trump yesterday announced that the United States will be implementing a 10% tariff on $300 billion in Chinese imports, effective September 1, it understandably sent further shockwaves through the freight transportation and logistics sectors.

When President Trump announced plans to impose 10% tariffs on $300 billion of Chinese goods starting on September 1st, it begs the question, how is the supply chain handling these changes?

With $250 billion in tariffs on imported Chinese products and no change in sight, this article offers 5 practical steps companies can take now to minimize any negative effects from China trade tariffs.