The trade war between the United States and China slows down the container traffic between the two largest world economies, while shipping companies warn of a drop in reservations and an increasing phenomenon “empty vessels”, which means bypassing certain ports or full cancellation of transport.
At the beginning of this week, the executive directors of the largest American shopping chains arrived in the White House to convey clear warning: if the customs in Chinese goods are not changed within two weeks, American shops will face “empty shelves.”
Three companies whose representatives attended the meeting – Walmart, Target and Home Depot – the most affected by the decisions of the US presidents, which include duties up to 145 percent in Chinese products and the increase in port taxi for Chinese ships.
Walmart procures about 60 percent of their imported products from China, including clothes, electronics and toys, while about 50 percent of the Target supplier also located in China, according to Reuters.
Many traders and manufacturers currently have stocks in warehouses that help them overcome current disorders, but these stocks last only a limited time, usually a few weeks.
After that, traders will face a decision: pay customs and take additional costs, transfer costs to consumers or stop buying goods from China and face shortages on shelves.
There are indications that many American companies are already responding to canceling orders. Ships from the eastern shore of China takes about two to three weeks to reach the West Coast of the United States.
According to the data published by Los Angeles, which accepts large amounts of goods from Chinese ports, container traffic this year was 56 percent higher than at the same time last year, probably due to a large number of orders before Trump’s Customs Part 2. April.
However, the next week, a decrease of 11 percent turnover is expected, and then next, another 33 percent.
(Vijesti.ba / Fena)
