Trump’s plans to increase the visibility of global democracy

The global shipping industry, which handles 80% of world trade, is in a state of uncertainty.

The reason is that US President Donald Trump is escalating trade and geopolitical tensions with both adversaries and allies, Reuters reported.

It is against this backdrop that the TPM Container Transport and Supply Chain Conference, organized by S&P Global (SPGI.N), is taking place this week in Long Beach, California, which traditionally opens the season for negotiating container shipping contracts.

This year’s conference includes key industry players such as MSC, Maersk and Hapag-Lloyd, as well as major customers such as Walmart and leading logistics companies including DSV and DHL.

These companies will face the consequences of increased protectionism, which could reduce international trade and weaken the position of large container ship owners who have enjoyed high profits and have had the upper hand in setting tariffs for years.

Trump has already imposed an additional 10% tariff on goods from China, the world’s largest exporter, and has proposed port fees worth millions for Chinese-made ships.

Among other things, Trump is threatening an additional 10% tariff on Chinese goods, and his administration is planning new or increased tariffs on steel and aluminum, as well as a possible 25% tariff on products from the European Union.

“The world has become very unpredictable,” Hapag-Lloyd CEO Rolf Habben Jansen told reporters on Monday.

Higher tariffs and additional fees are not good for the global economy, he said. Such measures will put pressure on the growth of the industry and the consumers who support it.

The world’s largest importer has begun to back away from free trade at a time when global supply chains are already being hit by rising costs caused by extreme weather conditions due to global warming, as well as by ship rerouting to bypass the Suez Canal.

Imports of containers into the United States, including plastic toys and machine parts, have surged, in part because of advance purchases to avoid tariffs. But trade experts warn that further growth in imports is unlikely after the new tariffs take effect, as countries hit by the tariffs retaliate and as consumers already suffering from inflation are forced to pay for the rising cost of goods — which could affect demand and container shipping rates.

According to the Drewry World Container Index, the spot rate for a 40-foot container was $2,629 on Thursday, down 75% from its peak during the pandemic ($10,377 in September 2021) and the lowest since May 2024.

“The geopolitical situation has certainly become more challenging, which could lead to sharp fluctuations in freight rates in either direction, but our baseline assessment assumes a moderate adjustment during 2025,” Jefferies analysts said.

In another move that has caused alarm around the world, the US Trade Representative proposed on February 21 a significant increase in fees for Chinese ships calling at US ports, as part of a union-backed plan to stimulate shipbuilding in the US.

Under the proposal, ships owned by Chinese shipping operators, including state-owned COSCO, would be required to pay port dues of up to $1 million per ship. For other operators using Chinese-made ships, the fee could be as high as $1.5 million.

The change is expected to benefit shipping companies in Taiwan and South Korea. However, experts warn that it will have serious consequences for container carriers and could lead to higher prices for everything from toys and clothing to food and fuel.

“The economic burden on American exporters and importers will be enormous,” container shipping expert Lars Jensen wrote on LinkedIn. “The actions the US administration has taken over the past four weeks are unprecedented in their scale and scope.”

USM previously reported that China was imposing tariffs on 700 US goods in response to Trump’s restrictions.