CMA CGM has seen its cargo volumes to the United States cut in half since the onset of the U.S.-China trade war, according to Rodolphe Saadé, CEO of the French shipping giant.
Speaking in the French Senate on May 12, Saadé underscored the significance of the current tariff truce between Washington and Beijing.
CMA CGM, alongside Danish rival Maersk, has been among the hardest hit by the wave of protectionist measures initiated during the Trump administration—policies that continue to impact global shipping lanes and supply chains.
Container shipping holds its breath amid US-China tariff ceasefire
While politicians on all sides will argue over who has won, who has lost, and who has the better deal, the most important point is that we will now see goods flowing more easily between the world’s biggest trading nations, noted Peter Sand, Xeneta’s Chief Analyst. “The spiralling trade war was catastrophic for businesses, so there will be huge relief that diplomacy appears to be returning,” he pointed out.
According to the analyst, the average transit time on the Transpacific trade is 22 days, so shippers will take the 90-day window of opportunity to ship as many goods as possible into the United States, which is expected to put upward pressure on freight rates.
Sand notes that ocean carriers responded to falling volumes from China to the US by slashing capacity and redeploying it onto other trades, such as the Far East to Europe. “It takes time to shift capacity back again, so a revival in volumes from China to the US may mean shippers have to pay a little over the odds in the short term,” he explains.
In the longer term, freight rates will likely continue the downward trend seen in the market during Q1 prior to the “Liberation Day” announcement by Trump, according to Sand, who said that it must not be ignored there is still a 30% tariff on imports from China to the US and this will be prohibitive for some businesses with lower-margin goods.
Sand concluded: “There will be relief over the easing of tariffs [in the long term], but shippers cannot carry on as if nothing has happened because, if we have learned anything in the past few months, it is to expect the unexpected and further volatility. The geopolitical risk on supply chains is ever present.”
