Chinese state-run shipping company COSCO said it forecasts trans-Pacific cargo to drop by 10% should the US go forward with its plans to slap 25% tariffs on $200 billion of Chinese imports in coming weeks, Caixin reports.
The world’s third-largest container shipping company said that it is well poised for any impact of the tariffs, which it foresees will hit lower-value cargo more than higher-value goods.
The US’s steady economic growth will bolster demand for Chinese exports in the short term, said COSCO General Manager Wang Haimin on Friday.
Should Washington pursue yet more extreme measures, covering the entirety of Chinese exports to the US, COSCO will still able to pick up business from other markets in Southeast Asia where it has been expanding quickly, Wang added.
Last week COSCO posted a 97.8% fall in first-half profits from last year amid higher costs, despite a small uptick in revenues and steady 12% y/y growth in container shipping volumes.