US-China Cargo Volume Drops Sharply in April as Customers Respond Quickly to Tariffs, Says Maersk CEO

• US-China container volumes fell 30% to 40% in April due to tariffs, Maersk's CEO said.
• Maersk, a key global trade indicator, has noticed rapid order cancellations amid tariff impacts.
• Chinese shipments to the U.S. dropped approximately 20% in April compared to the previous year.

The volume of containers shipped between the US and China dropped by 30% to 40% in April. President Donald Trump's tariffs took hold, the Danish shipping giant Maersk said on Thursday.

"It has gone very fast, so this is the result of customers reacting very, very fast on canceling orders or stopping orders, and waiting to see if this is going to resolve itself," Maersk CEO Vincent Clerc said at the company's first quarter earnings call.

Frequently regarded as an indicator of worldwide trade patterns, Maersk—the globe’s second-biggest carrier by capacity—is experiencing the impacts of a significant decline in transpacific shipping activities.

The US-China container shipments account for only 5% of Maersk's operations; however, Clerc's evaluation of the significant reduction in commerce between the globe's leading economic powers mirrors a 35% decrease in cargo volume coming from Asia observed by the company. Port of Los Angeles expects.

This decline aligns with events in the US's 145% tariff rate On Chinese imports, which came into force in early April. Trade discussions between Washington and Beijing are set for this weekend; however, uncertainty persists throughout supply chains.

Many businesses are reacting by using up current stock levels and delaying fresh purchases until the direction of policies becomes more apparent, according to Clerc. Companies are sourcing products not only from their personal storage facilities but also from inventories kept in Canada, Mexico, and through various U.S.-based suppliers and retailers, as they await clarification on trade regulations.

Clerc cautioned about possible shortfalls for certain items, such as solar panels And batteries, where China leads the supply chain, should also be considered. tension between Washington and Beijing persist.

"To be crystal clear, if we fail to locate alternatives before summertime, it will begin causing significant issues everywhere, since there are specific goods and items for which these imports cannot be easily replaced," he stated.

Previously, Maersk anticipated a 4% increase in global container volumes for the year. However, they have revised their forecast and now predict the volume could fluctuate between a decrease of 1% and an increase of 4%.

Shipping specialists and logistics professionals informed Business Insider Last week, it was warned that the U.S. might experience rising prices and bare store shelves within months due to Trump's tariffs affecting supply chains.

Even with the disruptions, Maersk stated they have managed to reallocate idle capacity between the U.S. and China to other trading routes where demand continues to be robust.

In April, according to official customs data released on Friday, Chinese exports increased by 8.1% when measured in dollars from the previous year. Exports sent to Southeast Asia surged by 21%, whereas those directed towards the European Union climbed by 8%.

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