MARKET COMMENTARY:
The latest escalation in U.S.-China trade tensions marks a
new phase of economic confrontation, with profound
implications for global markets and the shipping industry.
On April 2, President Donald Trump announced sweeping
tariffs, including a 34% levy on Chinese imports, 20% on
EU goods, and a baseline 10% tariff on most global imports. These measures also hit emerging manufacturing
hubs like Vietnam and Cambodia. The EU swiftly condemned the move, calling it a “major blow” to the global
economy and warning of countermeasures. China, in a
rapid and assertive response, imposed a matching 34%
tariff on U.S. imports and introduced a range of other retaliatory measures, including export controls on rare earths, bans on specific U.S. firms and goods, and new investigations into American companies operating in China. The back-and-forth not only revives memories of the 2018–2019
trade war but amplifies fears of sustained global economic fragmentation. Historically, container and dry bulk sectors—particularly grain and steel cargoes—were hit hardest, but now the car carrier sector will also take a hit. With
retaliatory tariffs likely to affect U.S. exports more than imports, the shipping market could see further pressure.
Meanwhile, global trade flows may become more regionalized, disrupting established shipping lanes and reducing
tonne-mile demand across major routes.
The dry bulk S&P market saw a notable slowdown in Q1 2025, with total transactions declining by approximately 18%
year-on-year, from 238 vessels in Q1 2024 to 196 vessels in the same period this year. However, despite a muted start
in January (56 transactions), activity gradually gained momentum, rising to 66 in February and peaking at 70 in March.
Segment-wise, Handysize vessels led activity with 50 transactions, although slightly down from 52 in Q1 2024. Supramax and Panamax segments also remained active with 38 and 36 sales respectively. Notably, Panamax vessels posted
year-on-year gains, up from 23 transactions last year, indicating growing interest in this mid-sized segment. In contrast, Capesize activity fell sharply to just 16 sales, exactly half of the 32 recorded in Q1 2024
Read more: https://cyprusshippingnews.com/wp-content/uploads/2025/04/xclusiv-2025_04_07.pdf
source Cyprus shipping news
