NEW YORK, May 9 (Xinhua) -- Multiple major global container operators recently reduced services between the United States and China as high tariffs hindered bilateral trade.
Germany's Hapag-Lloyd AG, a global leading container shipping company, has canceled 30 percent of shipments bound from China to the United States due to declining demand, a company spokesperson said.
Scheduled weekly services operated by MSC Group, Zim Integrated Shipping Services and the Ocean Alliance, which includes Cosco, Evergreen, CMA-CGM and Orient Overseas Container Line, saw suspensions, according to media reports citing Simon Sundboell, CEO of Danish maritime data provider eeSea.
MSC Group adjusted the capacity of its network serving Asia to the U.S. East Coast and Gulf routes in response to the recent changes in demand for cargo transport from Asia to the United States. As part of the update, the Empire and Pelican services will be suspended.
"This is not the precursor. It is the proof of a drop in economic activity," said Sundboell.
The bookings from China to the United States would drop by 25 percent to 30 percent as some trades halted completely, said Stefan Paul, CEO of Swiss transport and logistics company Kuehne + Nagel International AG on a recent conference call.
Meanwhile, U.S. exports of crude oil, coal and soybeans to China also slumped. Crude flows from the Gulf Coast to China came to a halt in April following a high of over 170,000 barrels per day in March, according to market information supplier Kpler.
