Input Stories

The administration’s broad tariffs are causing slowdowns at some of the most critical shipping hubs in the U.S. (Supply Chain Brain).  

What’s going on: “According to an April 21 release from freight forwarder Flexport, ocean carriers have been withdrawing capacity for [trans-Pacific] eastbound trade at faster rates than were seen during the pandemic, with eight carriers having completely suspended seven of their weekly service loops.”

• Additional scheduled voyages are being canceled “for several weeks across alliances/carriers,” and more cancellations are anticipated.
• Canceled routes nearly doubled between the weeks of April 13 and April 20 and “more than 25% of weekly service loops have already been canceled for late-April/early-May.”  

Where it’s happening: At the Port of Los Angeles this week, scheduled vessels are down by more than 27% compared to last week and by 9% year over year. The port expects a 35% decrease in import volumes in the next two weeks.

• At the ports of Seattle and Tacoma, “vessels have been arriving with less cargo than anticipated in recent weeks.”     

When it will be felt: “Flexport expects the initial impacts from this slowdown to be felt around mid-May, particularly for businesses shipping from major Chinese ports in Yantian, Ningbo and Shanghai. That could come in the form of tighter capacity and reduced availability following the initial run of blank sailings, ‘potentially removing up to 50% of anticipated allocation.’”

• Consumers likely won’t feel the effects until peak retail season in August, when back-to-school shopping begins, and from October to December, during the holidays.
• However, after summer inventories are gone, any goods reliant on Chinese manufacturing could see “widespread stockouts,” according to Flexport.