Container movements marginally escalated in April
Container traffic experienced a minor uptick in April, even amid the ongoing international trade conflict, as per a flash estimate published by the RWI research institute and the Institute of Shipping Economics and Logistics (ISL) on Wednesday. The container traffic index rose to 137.3 points, moving upward from 136.2 points in March.
"Despite escalating trade tensions, world trade continues to show stability," the researchers noted. The latest development suggests that global trade remains resilient, despite the increased trade disputes.
The tariff spat between the United States and China, which escalated to a massive increase in Chinese import tariffs by 145 percent by mid-April, appears to have somewhat impacted container traffic. However, the changes remain within the usual fluctuations observed in US ports. As containers from China take up to two weeks to reach West Coast ports, further effects on container traffic are anticipated in May.
Torsten Schmidt, the chief economist at the RWI, explained, "The short-term influence of the fluctuating US tariff policy on container traffic is still limited. Capturing such changes in monthly data proves challenging."
The current unpredictable nature of US trade policies can potentially harm business with the US if solutions are not found soon. However, there is some positive news: the US and China have agreed to a 90-day truce in their trade war and have agreed to significantly lower tariffs.
It's worth noting that the recent developments in the US-China trade tensions have resulted in temporary tariff reductions. From May 12, 2025, the US and China will implement a mutual reduction in trade measures, with US tariffs on Chinese goods decreasing to 30% for a 90-day period. Conversely, China will lower its tariffs on US goods from 125% to 10% for the same duration. This agreement is aimed at mitigating inflationary pressures and ensuring economic stability, though it does not include all relevant sectors such as autos, steel, and aluminum.
The ongoing trade tensions, while reduced temporarily, continue to create economic uncertainty and disrupt global supply chains, which may affect investment decisions and consumer confidence. Moreover, the reliance on temporary solutions rather than long-term agreements can undermine long-term economic resilience and global trade stability. This can potentially deter long-term investments in global trade infrastructure, including container shipping.
- The European Union, in light of the ongoing international trade conflict, may need to consider the potential impact on its industry and finance due to the instability caused by escalating trade disputes, such as the tariff spat between the United States and China.
- The European Parliament, Council, and Commission might find it necessary to examine temporary tariff reductions, like the US-China agreement, to mitigate inflationary pressures and ensure economic stability, and assess their potential impact on the European industry and financial markets.
