INSUBCONTINENT EXCLUSIVE:
United States ports rose more than expected in June, suggesting that some retailers moved up orders to insulate themselves from an
intensifying trade war that threatens to send up costs on a growing number of consumer products.Retailers such as Walmart Inc and Amazon.com
face uncertainty due to United States President Donald Trump's threat to impose more tariffs on Chinese goods, and the jump in imports
from the country was likely because of "pre-emptive buying in anticipation of the tariffs", said Ben Hackett, founder of international
maritime consultancy Hackett Associates."This is a bump that isn't quite normal," he said.The United States container port peak season is
traditionally driven by orders for Chinese-made clothing, electronics and toys for the back-to-school season running from June to September,
and then the winter holiday season.The volume of loaded shipping containers from China to all United States ports was up 6.3 percent in
June from a year earlier after falling 6.9 percent in May and 3.9 percent in April, said Gene Seroka, executive director of the Port of Los
Angeles, the busiest United States container port and No
1 hub for ocean trade with China.Seroka's data was sourced from IHS Markit's PIERS and analyzed by Port of Los Angeles staff.Data about
specific products and buyers, which is compiled from paperwork filed when goods are delivered, was not immediately available.China said on
Friday exports unexpectedly accelerated in June
The commerce ministry confirmed that Chinese exporters were front-loading shipments to the United States to get ahead of expected
tariffs.Walmart and Amazon declined to comment.Trump has vowed to reset the United States' global trade agreements, which includes a threat
to impose tariffs on more than $500 billion worth of Chinese goods
Retailers, who place orders for general merchandise up to a year in advance, can offset additional costs by raising prices or finding new
suppliers in countries not subject to import levies.On July 6, the United States imposed 25 percent tariffs on $34 billion of Chinese
goods, including flash drives, remote controls and thermostats, from a list of $50 billion in products first proposed in April
China quickly fired back with tariffs on an equal value of United States goods, including soybeans, whiskey, cotton and automobiles.Those
are unlikely to immediately affect retailers.The Trump administration raised the stakes in the trade battle on Tuesday with a plan to add 10
percent tariffs on $200 billion worth of Chinese goods, including furniture, handbags, pet food, refrigerators, textiles and auto parts.That
new round could hit during the autumn lead-up to the all-important Christmas and winter holidays
Many products purchased for that season will have arrived at ports well ahead of the imposition of the new levies.There are some indications
that other industries have employed forward buying to avoid tariffs.Automakers hailed more ships in May in an apparent scramble to bring
vehicles to the United States to pre-empt potential tariff increases
The ports of Baltimore, Jacksonville, Florida; and Brunswick, Georgia - the three leading United States ports for importing automobiles -
unloaded a combined 23,000 more cars than they did a year earlier, according to port data, port officials and logistics companies.Michael
Binetti, an analyst at Credit Suisse, said the latest round of proposed tariffs, if implemented, could catch retailers like Restoration
Hardware Inc, Williams-Sonoma, Michael Kors and Tapestry in the crosshairs.Restoration Hardware on Friday said it sourced about 40 percent
of its products from China in fiscal 2017
It expects to reduce that to around 35 percent fiscal 2018 and to reduce to as little as 25 percent in fiscal 2019.In the long run, "I don't
think that the United States ports will be any kind of issue," Binetti said
story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
