There are rates of unpredictability and chaos. That is why there are those who do not want to take risks
As the metal walkway is lowered, the crew begins to work to fix the ship to the dock-the facts of bright orange monkey are overshadowed by the vast pink container ship behind them.
As soon as the One Modern ship is securely fixed, three pipe drivers start a race against the clock to unload and recharge more than 700 Hong Kong port in less than 10 hours.
For numerous companies around the world in the same boat, there is a larger race at stake: the massive operation to remove goods from China and take them to the US before the highest rates imposed by US President Donald Trump, Expire, on August 12.
“The rates of unpredictability and chaos are, in fact, at historical maxims,” says Roberto Giannetta, president of Hong Kong Liner Shipping Association to CNN. “This instability is creating a lot of chaos.”
Roberto Giannetta, president of Hong Kong Liner Shipping Association in the port of Hong Kong in June. Rebecca Wright/CNN
In June, negotiations between the US and China were held in London, which resulted in an agreement on a commercial truce, according to employees of both parties.
But those who are at the front line to deal with these mutation trade policies are not taking risks. China is the second largest commercial partner in the United States, following Mexico. Trade between the two countries exceeded $ 688 billion last year, according to Chinese data.
“The rules change three times a week,” says Rick Woldenberg, executive director of Learning Resources, a Chicago -based educational toy company. “We have no idea what the rules will be when the product arrives.”
When the United States announced the imposition of tariffs to most of the world, on April 2, they triggered chaos in the complex global supply chains that allow the free flow of goods worldwide – especially in the shipping industry, which carries 90% of all manufactured products.
Despite a separate 90 -day break in most tariffs, business leaders say they have to function as if tariffs were returning.
US companies have been trying to store goods during the truce period, causing Chinese factories to strive to satisfy demand and pressing maritime transport companies to deliver as much as possible during the current period.
“Companies want to anticipate deliveries because they just don’t know what the reality will look like in a few weeks,” says Jens Eskelund, Mayor of the European Union Chamber in China, headquartered in Beijing. “It becomes very difficult to plan, create inefficiency, and eventually this will also increase costs.”
‘Tremendous destruction of wealth’
On board the 302 -meter -long one modern, operated by the Ocean Network Express, there are about 7,000 containers full of products such as clothing, furniture and car parts – mostly made in China – intended for the United States.
Despite the US commercial crisis, the ship’s crew seems to be extremely stoic, a sign of resilience that has become the brand image of the naval industry. In recent years, the sector has resisted constant seizures, including Covid-19 pandemic, Suez’s channel blockage and the threat of the Houthi missiles in the Red Sea.
“Maritime transport continues, regardless of all that is done to it,” says Roberto Giannetta. “This is an industry that doesn’t stop.”
After leaving Hong Kong, the ship will travel more than 10,000 nautical miles – stopping in three ports in mainland China and one in South Korea, before crossing the Pacific Ocean, passing through the narrow channel channels of the Panama canal and finally coming to Houston, Texas.
On the American side, some companies that depend on Chinese imports are fighting to be up.
Trump had already ignored the impact of customs duties on US companies and consumers, saying at a meeting of his office on 30 April that contractor ships arriving in the US are “loaded with things, many of which we don’t need.”
“Maybe the kids have two dolls instead of 30,” Trump added. “Perhaps the two dolls cost a few dollars more than they would cost normally.”
“The retailers will run out of product,” says Rick Woldenberg. “This will happen absolutely.”
In addition to scarcity on the shelves, industry leaders are also sure that any financial pain will be transferred to the American public.
“All these charges are effectively pushed to the consumer,” summarizes Roberto Giannetta.
Rick Woldenberg agrees: “They can call you tariffs or whatever they want, but it’s a tax and have turned our company into a tax collector.”
“We will see the extinction of some of these companies,” says Woldenberg. “There is a tremendous destruction of wealth and I do not think this is recoverable.”
The toy industry has been particularly affected because about 80% of all toys sold in the United States are manufactured in China, according to the US toy association.
Choose to fight
Rick Woldenberg successfully prosecuting the Trump administration because of the trade war, although the decision of a US district court of granting an injunction on tariffs is currently suspended after a government appeal.
“Of course we had to fight,” he says. “I can’t accept the knockout punch.”
Learning Resources, a 100 -generation 100 -year -old family business, employs 500 people in the United States. They are currently actively transferring part of the production of toys out of China to avoid the “ups and downs of the soap opera with the US”.
But transferring production to the US, one of the declared goals of trade war, is just “a bureaucrat’s costume,” says Rick Woldenberg, because capacity is not currently available on national soil.
A member of the crew aboard the One Modern, after giving the port of Hong Kong in early June. Rebecca Wright/CNN
Trump had already minimized the impact of tariffs on US companies and consumers, stating at an April 30 meeting that containing ships that arrive in the US are “loaded with things, many of which we don’t need.”
“Maybe the kids have two dolls instead of 30,” Trump added. “Perhaps the two dolls cost a few dollars more than they would cost normally.”
“The retailers will be out of products,” says Rick Woldenberg. “This will happen for sure.”
In addition to scarcity on the shelves, the industry leaders are also aware that any financial loss will be passed on to the American public.
“All these rates end up being passed on to the consumer,” summarizes Giannetta.
Rick Woldenberg agrees, “They can call it tariffs or whatever they want, but it’s a tax and they have turned our company into a tax collector.”
Fred He, from CNN, contributed to this report
