Trade and Tariffs Presenter: Ms. Tong Zhu Chief Commercial Officer - - PowerPoint PPT Presentation

Trade and Tariffs

Presenter: Ms. Tong Zhu Chief Commercial Officer & Chief Strategy Officer

Item No.: 2A Date of Meeting: September 3, 2019

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2017 2018 2019

JAN 2018: Tariffs imposed on imports of solar panels & washing machines MAR 2018: Tariffs imposed on imports of steel & aluminum JUL 2018: Tariffs imposed on $34B of Chinese imports AUG 2018: Tariffs imposed on $16B of Chinese imports SEP 2018: 10% tariffs imposed on $200B of Chinese imports, to increase to 25% by Jan 1, 2019. DEC 2018: Volume surge ahead of 25% tariff to be imposed on $200B of Chinese imports MAY 2019: Increase from 10%-25% tariffs on $200B of Chinese imports JUN 2019: US threatens tariffs on $300B of Chinese imports

2018

C H I N A N E A S I A S E A S I A

Monthly Imports from Asia to NWSA (TEUs, Jan 2017-Jun 2019)

Source: PIERS (Foreign Full TEUs)

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2017 2018 2019

APR 2018: Retaliation for US Section 232 tariffs JUL 2018: Retaliation for US Section 301 tariffs ($34B) AUG 2018: Retaliation for US Section 301 tariffs ($16B) SEP 2018: Retaliation for US Section 301 tariffs ($60B) JAN 2019: Suspension of retaliation for US Section 301 tariffs against autos and parts

2018

C H I N A N E A S I A S E A S I A

Monthly Exports from the NWSA to Asia (TEUs, Jan 2017-Jun 2019)

Source: PIERS (Foreign Full TEUs)

JUN 2019: Retaliation for US Section 301 tariffs ($60B)

Asian Tigers on the Move

46,686 58,287 78,014 71,434 88,879 38,665 39,762 46,808 45,039 63,618 34,240 32,436 45,622 42,289 58,165 33,558 30,958 35,309 33,709 39,118 28,774 24,906 28,139 27,845 31,608 50,000 100,000 150,000 200,000 250,000 300,000 2014 2015 2016 2017 2018

VIETNAM THAILAND INDONESIA MALAYSIA PHILIPPINES

Source: PIERS (Foreign Full TEUs)

SE Asia - NWSA Direct Call & Transshipment-Connected Ports

• Transit time and transport cost

drive routing decisions

• Multiple options available via East

Coast (via Suez) and transpacific services

• Port infrastructure in emerging

markets limits opportunities for direct port calls

• Inter-regional feeder ship service

between local and transhipment ports drives the local trade

NWSA Strategies and Initiatives

• Explore opportunities with shipping lines to expand on the

number of SE Asia services and direct ports of call

• Develop programs to retain and grow IPI cargo and recapture

market share

• Develop programs to improve gateway efficiency
• Intensify efforts to promote the NWSA gateway to supply

chain partners for SE Asia and other markets