Cargo volumes plummet at California ports amid trade tensions

In recent days, cargo shipping from China to the United States has seen significant drops, with zero vessels leaving China bound for major West Coast ports in a notable 12-hour window. This unprecedented occurrence has not been seen since the onset of the pandemic. Port officials are alarmed by the rapid decline in the number of vessels, as West Coast ports like the Port of Long Beach are experiencing a staggering 35-40% drop in cargo volume, while the Port of Los Angeles reports a 31% decrease this week. Trade representatives from the US and China are scheduled to meet in Geneva in an effort to address these escalating trade tensions and seek a resolution to the ongoing trade war. The situation has resulted in heightened tariffs on goods exchanged between the two nations, with tariffs as high as 145% on most Chinese imports to the United States. This has directly contributed to reduced shipping volumes and rising prices on consumer goods, taking a toll on the economic landscape of both countries. Port officials warn that if the stalemate continues, the shelves could soon be emptier of essential products. Approximately 63% of the cargo shipped through the Port of Long Beach originates from China, making the port particularly vulnerable to the effects of the trade war. The CEO of Maersk, Vincent Clerc, emphasized the need for an urgent de-escalation in trade relations, suggesting that failure to stabilize the situation may lead to more adverse effects in cargo shipping between the two countries.