In a strong rebuke of recent US trade actions, Chinese shipping giant Cosco has condemned the measures targeting its maritime and shipbuilding sectors. The company argues that these actions are discriminatory and detrimental to global trade, as geopolitical tensions continue to reshape the maritime landscape.
Cosco criticizes US trade actions as unfair and harmful to global shipping.
The China Shipowners’ Association and other industry groups support Cosco’s stance.
The transpacific shipping market faces disruptions, including service cuts and pricing pressures.
Analysts warn of potential long-term impacts on global shipping volumes.
Cosco has labeled the US Trade Representative’s recent decisions as based on erroneous claims, asserting that they distort fair competition and hinder the normal functioning of the global shipping industry. The company emphasizes that these measures threaten maritime trade’s stable and sustainable development.
Major industry groups in China, including the China Shipowners’ Association (CSA), have echoed Cosco’s criticism. The CSA has strongly protested the US restrictions and called for an end to investigations and politically motivated actions.
Industry Response
The China Association of National Shipbuilding Industry has joined Cosco and CSA in their complaints, accusing the US of unfairly targeting China’s shipbuilding sector with baseless allegations. This unified opposition highlights the growing concern among Chinese industry leaders regarding the impact of US trade policies.
Impact on Maritime Trade
The ongoing US-China tariff dispute has created significant turbulence in the trans-Pacific shipping market. Industry sources report that the Ocean Alliance, which includes Cosco, CMA CGM, Evergreen, and OOCL, plans to cancel three westbound routes to Los Angeles by the end of April. This decision reflects the broader challenges facing the shipping industry as it navigates the complexities of geopolitical tensions.
Freight forwarders have reported mixed reactions to these developments. Some have yet to receive official notifications, while others confirm that blank sailings from the Alliance have become increasingly common. As transpacific services are reduced, some carriers are redirecting capacity to Europe to fill gaps in early May.
Future Outlook
Analysts warn that the current situation may ripple into other markets, with freight rates on Asia-Europe routes already under pressure. Future data indicates continued declines, raising concerns about the long-term outlook for global shipping.
Adding to the strain, several countries, including the US, Vietnam, Thailand, and Malaysia, have implemented stricter checks on product origin. This clampdown poses a serious challenge to China’s re-export trade and could lead to a notable drop in global shipping volumes, particularly across the Pacific.
Expectations for long-term freight rates have taken a hit as escalating trade frictions cast a shadow over the global shipping outlook. Short-haul routes within Asia are experiencing supply-demand mismatches, as capacity withdrawn from long-haul services is not being redeployed evenly.
As the situation evolves, the maritime industry will need to adapt to these geopolitical challenges, with stakeholders on both sides of the Pacific closely monitoring developments.
