Trade tariffs and the looming threat of a wider trade war are already causing disruptions in global supply chains. In response, some international shippers and beneficial cargo owners (BCOs) have begun implementing contingency plans to minimise associated risks.
The introduction of new sourcing locations as part of these mitigation strategies, however, can significantly impact the global ocean freight networks of organisations, Philip Damas, Head of Drewry supply chain advisors, wrote on the website of the international provider of research and consulting services to the maritime and shipping industry.
The latest ‘high but uneven’ level of US reciprocal tariffs will result in both reduction in and shift of international trade volumes, with winners and losers, according to Drewry Shipping Consultant.
The introduction of new sourcing locations as part of these mitigation strategies, however, can significantly impact the global ocean freight networks of organisations, a Drewry expert noted.
He feels these developments will have significant implications for the future shape of international trade, with stakeholders across the global container shipping industry now reassessing their markets, supply chain, sourcing and service decisions.
“Clearly the situation is highly dynamic with considerable uncertainty over how those countries most affected will respond or seek to mitigate the full impact of the measures announced,” he added.
Fibre2Fashion News Desk (DS)
