Chief executive at Infometrics Brad Olsen says it is another reminder of the delicate position of global trade. Photo: AFP
Global freight costs might be rising as part of a rush to get exports through before the end of the 90-day pause on US trade tariffs.
In April, US President Donald Trump paused most tariffs on imports into the US amid share market volatility.
Chief executive at Infometrics Brad Olsen said there had been a real spike in freight costs over the past week.
"The Freightos Baltic Index: Global Container Freight Index rose 52 percent week on week to the highest levels since early February, driven by a doubling in the crucial China/East Asia - North America West Coast route.
"It suggests a possible rush to try and get some exports through between the US and China ahead of the mid-July end to the 90-day pause, with less progress than people might have expected to see on a trade agreement."
Chief executive at Infometrics Brad Olsen. Photo: RNZ / Samuel Rillstone
He said it was likely to continue for the next month or so as people tried to move products between the countries, or until amore concrete deal was struck.
"Although there is work underway on a deal, it's been looking harder to achieve an ongoing deal in recent weeks, as both sides have ratcheted up tension and concerns."
ASB chief economist Nick Tuffley said there had been swings in demand.
"With a big drop on announcements of high tariffs and now a global rush to get stock into the US before tariff pauses expire.
"There has also been some disruption of where ships have been positioned."
Olsen said while the higher freight costs were a story for the US and China and should not mean higher costs here, it was another reminder of the delicate position of global trade.
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