Alex Hungate, president and CEO of SATS Ltd announced a rearrangement of cargo trade routes on Friday, as trade war between the US and China spreads across the globe.
According to Hungate, the gateway services and food solutions provider had definitely seen an impact in various cargo trade routes. While the trade volumes grow stronger between China and ASEAN countries, they are softer in Greater China including mainland China, Macau, Hong Kong, and Taiwan, CNBC reported, citing Hungate in its flagship show, Squawk Box. Overall, Greater China would be the most sensitive region of the trade tensions, he added.
SATS is an investment holding company, listed on the Singapore Exchange that operates in 13 nations and more than 60 locations within Asia and Middle East.
In case of air freight, Vietnam is strong performer, according to Hungate, Singapore, the trading hub is ‘performing pretty well’ while the growth remains strong in India. With about 300 Harley-Davidson lined up at the cargo trade terminal for shipping, Hungate confirmed the occurrence of ‘front loading’ – where traders benefit from high orders received prior to looming rise in tariffs.
In October, John Olin, Chief Financial Officer of Harley-Davidson said that the company was expecting to pay about $40 million in 2018 to deliver the costs of new tariffs around the world, as the American motorcycle manufacturer is imposed with tariffs on the metals it uses to make the bikes. Harley-Davidson is making all the efforts to reduce the impact of such tariffs on its profits, Olin said.
As reported in CNBC, markets are keeping their eyes on the most-awaited meeting between China President Xi Jinping and the U.S. President Donald Trump, for any signs of reducing tensions in the trade war. The meeting is to be held this month at the G-20 in Buenos Aires, Australia.
However, according to the World Trade Organization (WTO), trade tensions can’t be fixed by talks between the two nations alone, other countries would need to have their say. Although the two-sided conversations are good for agreeing trade deals and securing market access, the current trade war is affecting several other countries, WTO’s top employee said.