By Lisa Baertlein
LONG BEACH, California (Reuters) -The global ocean shipping industry that handles 80% of world trade is navigating a sea of uncertainty as U.S. President Donald Trump stokes trade and geopolitical tensions with historical foes as well as neighbors and allies.
That is the backdrop for this week's S&P Global TPM container shipping and supply chain conference in Long Beach, California, an annual event that marks the start of container shipping contract negotiating season.
Attendees this year include industry heavyweights like container carriers MSC, Maersk and Hapag-Lloyd, marquee customers such as Walmart, and major logistics firms including DSV and DHL.
These companies will be grappling with the ripple effects of increased protectionism, which could reduce international trade while weakening the negotiating position of massive container ship owners that have drawn robust profits and for years held the upper hand in pricing.
Trump has already slapped an additional 10% tariff on goods from China, the world's largest exporter, and has proposed million-dollar port entry fees for Chinese-built ships.
As early as Tuesday, the U.S. could impose 25% tariffs on goods like avocados and tequila from Mexico, and beef, lumber and oil from Canada.
Trump has threatened to levy an additional 10% tariff on Chinese goods. His administration also plans new or higher tariffs on steel and aluminum and has floated 25% duties on products from the European Union.
"The world has become very unpredictable," Hapag-Lloyd CEO Rolf Habben Jansen told reporters on Monday.
"Having higher tariffs and additional fees is not good for the global economy," he said, adding that those would pressure industry growth and the consumers that underpin it.
The world's biggest importer's shift away from free trade hits as global supply chains are managing higher costs from global warming-fueled severe weather and routing ships away from the Suez Canal to avoid attacks by Iran-backed Houthi militants in support of Palestinians in Gaza.
'UNPRECEDENTED IN SCOPE'
U.S. container imports of everything from plastic toys to machine parts have surged, in part due to early purchases to avoid tariffs. But trade experts warn that a pullback is likely once new import taxes kick in, targeted nations retaliate, and inflation-weary shoppers absorb the brunt of tariff-related cost increases - something that could pressure shipping demand and prices.
The Drewry World Container Index's spot rate for a 40-foot container was $2,629 as of Thursday, 75% below the pandemic peak of $10,377 in September 2021 and lowest since May 2024.