Shipping demand is on the track for a recovery after China and U.S. announced measures to ease tariff tensions between the two countries, according to Chinese freight forwarders.
China and the United States announced in Geneva on Monday a series of tariff modification measures aimed at easing trade tensions between the world's two largest economies.
The decision followed a two-day China-U.S. high-level meeting on economic and trade affairs, where both sides recognized the importance of their bilateral economic and trade relationship to both countries and the global economy, a joint statement said, noting that both sides emphasized the need for a sustainable, long-term and mutually beneficial economic and trade relationship.
Chinese freight forwarders say the announcement has driven up their business.
On Tuesday morning, Chen Xiang, general manager of Shanghai Pegasus Logistics, was busy repeatedly confirming the latest freight rates with his peers in the industry.
He said that soon after China and the U.S. released the statement, shipping companies verbally announced freight rate adjustments.
"Currently, the price has basically increased by about 500 U.S. dollars per container (twenty-foot equivalent unit). As demand has surged, there will definitely be a shortage of supply. We must book space in advance, to confirm the loading time and customs declaration time," he said.
In addition to communicating with peers and shipping companies, Chen and his employees are paying close attention to the clients' shipping demand.
"Factories and foreign trade companies have just learned about the news [on tariff reductions]. They need to schedule their shipments based on the backlog of orders they have received. If they place an order three to four days later, their shipments could resume around the end of next week," said Shi Lijun, business specialist of Shanghai Pegasus Logistics.
Shipping demand recovers amid China-US tariff adjustments
Shipping demand recovers amid China-US tariff adjustments
