With the recent escalation of the US tariff fight, geopolitics have once again reshaped global supply chains. Massive order cancellations from Chinese buyers put US exporters under significant pressure.
MTS Logistics Vice President of Business Development M. Can Fidan said that more than 250 polymer containers had been canceled and another batch of fertilizer orders were returned. “If these tariffs continue, China will never continue to buy these products from us,” he said.
In mid-April, U.S. export orders to China slipped 5.4% from a week earlier to just 17,220 Standard Containers (TEUs), according to data from Vizion and Dun & Bradstreet. The industry widely expects that this trend will continue to worsen without a diplomatic breakthrough.
Carriers and Shipless Carriers (NVOCC) said that low-margin goods, such as partially manufactured goods, were canceled first. Chinese buyers choose to abandon purchases under cost pressure. Exporters of high value goods have tried to pass on costs and have been unsuccessful.
“If exporters sign container contracts with China, most of them will now be canceled,” said one logistics leader.
It is worth noting that some operators are forwarding goods to Southeast Asian countries, which recently enjoyed a 90-day US suspension of tariff recovery, so demand for goods is rapidly heating up.
Peter Friedmann, Executive Director of the Agricultural Transport Alliance (AgTC), predicts: “In the short term, the supply of agricultural products will shift from China to other countries.” He confirmed that the agricultural export sector also saw a large number of order cancellations, and US farmers were once again the victims of trade policy.
It is gratifying that cold chain (refrigerated logistics) exports are relatively stable. One cold chain carrier said China's exports of refrigerated goods were limited due to early supply chain and production planning arrangements.
But Friedmann stressed that maritime instability remains a major challenge: “Shipping companies are reporting frequent flight cancellations, delays, and rerouting. Even if buyers are willing to place orders, delivery is still difficult.”
As trade disputes escalate, exporters must decentralize market layouts, optimize route strategies and strengthen risk controls. This situation is similar to the United States-China trade war of 2018-2019, and the damage to agriculture has so far not been recovered.
“This is not just speculation, but a replay of history,” said Mike Steenhoek, Executive Director of the American Soybean Transport Alliance. The scars left by the last trade conflict remain so.”
Source: https://www.joc.com/article/us-exporters-see-rise-in-canceled-orders-from-chinese-buyers-amid-tariff-standoff-5986165
