Are Seattle and other ports already seeing the collapse of trade?

West Coast sea traffic seems to be slowing

The trade war set off by the Trump administration might be entering its first critical phase. Ports along the West coast of the US such as Seattle and Tacoma are seeing a dip in shipping between the US and Asia. Although there was a slight spike in activity in the last two months, it looks as though trade might be dropping by 20-30%.

In the short term, this is bad news for those directly affected, such as shipping companies, longshoremen and freight companies. But it also bodes badly for the larger economy, as it means fewer imports and exports that will affect companies that rely  on parts to build products or sell food.

Scheduled sailings by container vessels bound from other nations to U.S. ports, including Seattle and Tacoma, have been canceled or postponed. Some U.S. importers are having to cancel orders as they can’t afford to pay the prohibitive tariffs. But how long can they last and what will this mean for employment?

The collapse of trade?

Until now, the discussion about the relative merits of a tariff war have been just that: a discussion. With the collapse of trade, the crunch will soon be felt by manufacturers, retailers and ultimately consumers when goods run out on shelves or become far more expensive.

Further north, in the Canadian port of Vancouver, business is trying to deepen trade opportunities with China and South East Asian countries to compensate for the drop-off of tradfe with the US.

(Michael Leahy. Source: Seattle Times et al. Photo: Shunya Koide / Unsplash)