Tariff Reaction Helped Keep November Import Freight Costs ‘Elevated,’ Says IHS
Import freight costs remained “elevated” in November, mainly in reaction to the Trade Act Section 301 tariffs on Chinese goods, reported IHS Markit Wednesday. “Over the summer, carriers cut capacity on trans-Pacific and Asia-European routes just as demand ramped up…
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quickly and unexpectedly,” said IHS. The announcement of U.S. tariffs on Chinese goods caused importers to “rush in” shipments ahead of the implementation date, “resulting in the peak shipping season moving up one month to July rather than August,” it said. “Since then, volumes have retreated and carriers are keeping additional capacity available through the end of the year to accommodate any uptick in demand” associated with the tariff rates increasing to 25 percent from 10 percent on Jan. 1, it said.