Cambodia and Taiwan beneficiaries of US Trade war with China India nowhere in the picture

Manufacturing of many goods now facing tariffs when imported by the US from China has moved out of China for manufacturing in neighbouring countries. One of the most obvious impacts is the shift in the Asian manufacturing landscape. according to a leading ship analyst.

US imports of Christmas tree lights Cambodia take over a large part of China’s market share.

One of the most obvious examples is US imports of Christmas tree lights which has seen Cambodia take over a large part of China’s market share. Another example is US imports of bicycles.

“As the tariffs have provoked a shift in manufacturing within Asia rather than a return of production to the US, volumes being shipped out of Asia remained quite stable before the pandemic hit. The biggest change was in intra-Asian volumes,” says Peter Sand, BIMCO’s Chief Shipping Analyst.

This analysis will focus on two commodities: bikes and Christmas tree lights, as well as the overall changes in US imports from China and the rest of Asia.

The production of 775,000 bikes moved out of China

The production of 775,000 bikes moved out of China. The United States imported 7.1 million bikes from China and 0.9 million from the rest of Asia during the first seven months of the calendar year 2020.

US imports of bikes from China have fallen by 17 per cent in the first seven months of 2020 compared with the same period in 2017, while imports of bikes from the rest of Asia have risen 83.1% though volumes from here remain much lower.

Taiwan and Cambodia’s bicycle exports to US have risen by 30.4 per cent and 478 per cent to 416,169 and 358,718 bikes, respectively.

Bikes from China were included in the trade war in July 2018, and although China remains the dominant producer, it has lost some of its share of US exports to Taiwan and Cambodia.

In the first seven months of 2020, US containerised imports from Asia excluding China exceeded imports from China. If this continues in the remaining five months of the year, 2020 will be the first year ever to see this trend.

However, recent months blurs this picture as China has regained the top spot over its neighbouring countries.

 “Importantly for shipping, the US tariffs have not provoked a large-scale return of manufacturing to the US, leaving tonne mile demand from that country relatively unaffected. As far as containerised shipping is concerned, whether a good is exported from China or Cambodia makes little difference in terms of distance.”

13.6% drop has to be seen in the context that imports from China

US has imported 31.5 million sets of Christmas lights so far this year, down 3.9% from last year, and compared to the first seven months of 2017, a 13.6% drop. The 13.6% drop has to be seen in the context that imports from China, which in the first seven months of 2017 accounted for 80% of US imports of Christmas tree lights, have fallen by 74.7%, whereas imports from the rest of Asia, and in particularly Cambodia, have risen by 215.3% and 197.8 per cent.

This has caused a 50 per cent rise in imports from Cambodia in the first seven months of the year, from a 14.3% rise in the first seven months of 2017. In contract, China’s share has dropped to 23.3% in the first seven months of this year.

Disclaimer
Copyright © 2020 PORT TO PORT - Shipping Services Portal ( Sagar Sandesh ). All rights reserved.

Follow Us