The negative consequences of the trade war are evident as demand for US ports and air freight sharply decreases.

According to reports, the escalating trade conflict between the US and China is beginning to have a broader impact on the US economy, with container port operators and air cargo companies reporting a significant decrease in goods from China. Logistics companies have noticed a sharp decline in container shipments to the US since the US imposed 145% tariffs on Chinese imported goods. The Port of Los Angeles, a major entry point for Chinese goods in the US, predicts that container volumes arriving at the port will decrease by 33% compared to the same period last year starting from May 4. Air cargo companies have also seen a significant drop in orders. Data from the container tracking platform Vizion shows that as of mid-April, bookings for standard 20-foot containers from China to the US had dropped by 45% compared to the previous year. John Denton, President of the International Chamber of Commerce (ICC), said that this disruption reflects businesses delaying decisions, waiting for clear signals from Washington and Beijing on whether tariffs will be reduced. Following US President Trump's announcement of reciprocal tariffs on April 2, the ICC surveyed members from over 60 countries, with the results indicating a general expectation that trade flows will face long-term impacts regardless of the type of agreement reached. Denton stated that the cost of entering the US market will reach the highest level since the 1930s. He noted that even with broader uncertainties, companies seem to have accepted at least a 10% baseline tariff. Supply chain disruption Trump predicted that the 145% tariff rate would eventually be reduced. However, formal negotiations between China and the US have not taken place yet. As the first wave of tariff-affected goods approaches the US coast, freight managers report significant changes in the supply chain. Nathan Strang, responsible for ocean freight operations at the US logistics company Flexport, said that many businesses are delaying shipments, expecting trade agreements to lower the new tariffs. Senior executives in logistics companies mentioned that US importers are depleting existing inventories before importing more from China. Some companies are storing goods in bonded warehouses, while others are diverting shipments to neighboring countries like Canada. Strang pointed out that companies have inventory in both the origin country and the US destination, warning that a sudden reduction in tariffs could lead to soaring transportation costs. Orders being canceled Shipping giant Hapag-Lloyd reported that about 30% of its outbound orders originating from China have been canceled. The slowdown in orders is evidently affecting port activities. Analysts at Sea-Intelligence reported a significant increase in "blank sailings" (canceled scheduled vessels from China). According to reports, in the four weeks from May 5, container bookings on the Asia-North America route decreased by about 400,000 compared to plans before the tariff announcement, a 25% decline. The Port of Los Angeles expects to have 20 "blank sailings" in May alone, involving over 250,000 containers, compared to only 6 in April. Benefiting Vietnam and Cambodia US import volumes briefly surged as importers turned to countries like Vietnam and Cambodia in Southeast Asia which are benefiting from the US postponing the implementation of reciprocal tariffs for 90 days. Container prices reflect these changes. According to data from logistics data provider Freightosclip, shipping costs for 40-foot containers from Vietnam to the US have increased by 15%, while shipping costs from China to the US have decreased by 27%. Judah Levine, research director at Freightos, stated that as the deadline for tariffs in July approaches, freight costs from other Asian countries to the US may continue to rise. Significant decline in air cargo volume Air cargo volume has also dropped significantly. The Airforwarders Association of America reported that its members have seen a 30% decrease in orders from China. Executive Director Brandon Fried stated that many members have already stopped accepting new orders from China, and prices and order rates will fluctuate significantly depending on Washington's policy direction. With the US government planning to end the tariff exemption for goods under $800 on May 2, the freight industry faces even greater pressure. This policy change is expected to have a severe impact on online retailers like Shein and Temu. Easyway Air Freight, a Hong Kong-based freight forwarding company, reported that its China-US business volume has halved since the tariff increase. E-commerce businesses hit hard Despite efforts by US freight companies and retailers to offset the impact by increasing inventory and shifting supply chains, they are beginning to feel the pressure of reduced imports. Due to the uncertainty of tariffs, one of the largest truck transport companies in the US, Knight-Swift Transportation (KNX.US), issued a warning about declining freight volume. CEO Adam Miller said that some major clients are concerned about a drop in orders in May due to tariffs. He added that many customers have already canceled or suspended orders from China and are looking for ways to adjust their supply chains to avoid cost increases. Retail consultants pointed out that consumer purchasing behavior is beginning to reflect a three-month consecutive decline in the confidence index. John Shea, CEO of Momentum Commerce, an online retail consulting company, warned that rising prices and declining consumer spending could have a "double blow" on the economy. He observed that as prices steadily rise, consumers are starting to turn to cheaper products.