Trump’s Return Looms Over China’s Cargo Industry

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The return of Donald Trump to the White House is set to spell trouble for Chinese freight forwarding and logistics companies, as the president-elect’s promise to hike tariffs on Chinese imports is expected to dent trade for the world’s second-largest economy.

Trump on Monday vowed to levy an additional 10% tariff on Chinese goods from his first day in office, according to a post on his Truth Social platform. The move is a response to the flow of illegal drugs, particularly Fentanyl, from China into the U.S., the post said.

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Donald Trump's proposed tariffs on Chinese imports could negatively impact Chinese freight and logistics companies, adding uncertainty to the global trade environment.
In 2023, China saw increases in port container throughput, air, and rail freight volumes, but sea and air transportation companies reported revenue declines due to lower freight fees post-pandemic.
Chinese freight forwarders face challenges from global trade restrictions and conflicts, necessitating diversification and service expansion for competitive advantage.

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Who’s Who

China Cosco Shipping Corp. Ltd.: China Cosco Shipping Corp. Ltd. is a company involved in the freight forwarding and logistics industry. Chen Wei, its deputy head of operational management, highlighted the need for Chinese freight forwarders to diversify supply chains due to global challenges like trade barriers, conflicts, and rising protectionism, which impact the industry.

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What Happened When

2023：: China's port container throughput jumped 4.9% year-on-year to 310 million twenty-foot equivalent units, while international air freight volume and rail freight volume increased 5.8% and 1%, respectively. Revenue for top 20 land freighters and top 50 air and sea freight companies were reported, showing decreases in air and sea freight revenues.

2024：: Ongoing conflicts in Gaza and Ukraine, Red Sea crisis, and rising protectionism impact global trade, leading companies to diversify supply chains.

Monday (date unspecified)：: Trump vowed to levy an additional 10% tariff on Chinese goods from his first day in office and addressed the proposed 60% tariffs on Chinese goods during his presidential campaign.

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