Trump's delay in tariff policy sparks a global shipping rush, causing Taiwan's shipping stocks to soar.

Taiwan • Business • 04/15 14:53
Trump's delay in tariff policy sparks a global shipping rush, causing Taiwan's shipping stocks to soar.

President Trump of the United States announced a 90-day delay in implementing tariffs on most countries, prompting global companies to speed up shipments, causing a surge in transportation. Taiwanese shipping companies such as Wan Hai, Yang Ming, and Evergreen saw their stock prices rise, while EVA Air and China Airlines achieved record revenues. Investment firms such as Yuanta Investment Consulting suggest a bullish strategy until June, with T3EX Global Holdings making a substantial increase in its investment in Yang Ming Marine Transport, reflecting strong market confidence in the short-term outlook for the shipping industry.

Key Updates

04/16 00:49

US consumers are dealing with changes in tariffs and price pressures, leading them to rethink their shopping habits.

In spring 2025, American consumers are facing changes in shopping behavior due to changes in tariff policies, rising prices, and low consumer confidence. Tariffs increased to 27%, affecting fast fashion brands like Shein and Temu, causing consumers to turn to the second-hand market. Retailers, unable to offer discounts because of supply chain costs, are seeing consumers pursue rational luxury. After the pandemic, consumers have shifted from emotional spending to conscious consumption and with a focus on sustainability. Retailers need to improve communication and reorganize supply chains to address these challenges.

04/15 22:50

Escalation of the US-China Trade War: Trump's Increased Tariffs Trigger Agricultural Crisis, Promises to Aid Farmers

In April 2025, the US-China trade war escalated as the Trump administration imposed a 145% tariff on Chinese goods, and China retaliated with a 125% tariff, severely impacting US agricultural exports. The Trump administration urged farmers to stay strong via social media and considered reintroducing agricultural subsidies. Reactions from the agricultural sector and members of Congress were mixed, expressing concerns that the tariffs and potential subsidy cuts could cause long-term harm to agriculture. Soybean and sorghum exports were affected, putting financial pressure on farmers, causing some to waver in their support.

04/15 20:49

Despite the ongoing trade tensions between the US and China, Chinese e-commerce platform DHgate has defied the odds, climbing to the 2nd position on the US App Store.

The Chinese cross-border e-commerce platform DHgate has risen to the second position in the free app rankings on the US App Store as of April 15, 2025, second only to ChatGPT, surpassing well-known apps such as Google. This phenomenon reflects a shift in consumer behavior in the context of US-China trade tensions and DHgate's growth in the US market. Driven by TikTok video promotions and the impact of high tariffs, DHgate has attracted American consumers with its low-priced products, in the process becoming China's largest B2B cross-border e-commerce platform.

04/15 18:52

Specialty coffee shops in the United States and importers are collectively adjusting prices due to cost pressures: From Oakland to Brooklyn

Many specialty coffee shops and importers across the United States have recently increased their prices due to climate change, trade policies, and rising costs. From Oakland, California, to Brooklyn, New York, businesses are facing a doubling of raw material prices, increased transportation and labor costs, and the pressure of new import tariffs. This price adjustment reflects the realities of the industry, highlighting that the coffee sector is at a pivotal moment of transformation.

04/15 18:20

In April, New York State manufacturing continued shrinking, with business sentiment hitting its lowest point since 2001.

In April 2025, manufacturing activity in New York State shrank for the second month in a row, with the general business conditions index rising from -20.0 to -8.1, but it still stayed in negative territory. The six-month business outlook index dropped to its second-lowest point since 2001, showing a dip in confidence. Recent shifts in tariff policies have increased economic uncertainty, pushing up the costs of raw materials and factory prices, and adding pressure on manufacturers.

04/15 14:53

Trump's delay in tariff policy sparks a global shipping rush, causing Taiwan's shipping stocks to soar.

President Trump of the United States announced a 90-day delay in implementing tariffs on most countries, prompting global companies to speed up shipments, causing a surge in transportation. Taiwanese shipping companies such as Wan Hai, Yang Ming, and Evergreen saw their stock prices rise, while EVA Air and China Airlines achieved record revenues. Investment firms such as Yuanta Investment Consulting suggest a bullish strategy until June, with T3EX Global Holdings making a substantial increase in its investment in Yang Ming Marine Transport, reflecting strong market confidence in the short-term outlook for the shipping industry.

04/15 13:49

CBOE Specialist Warns: Uncertainty in U.S. Tariff Policies Could Trigger Ongoing Market Volatility

Experts at the Chicago Board of Options Exchange (CBOE) have noted that the uncertainty surrounding U.S. tariff policies has not yet been fully reflected in market prices, and more intense volatility may occur in the future. The CBOE Volatility Index (VIX) has recently decreased, but experts believe this is just a temporary calm. The Trump administration is set to announce new tariff measures targeting high-tech products like semiconductors, posing challenges to the market due to policy ambiguity and technical pressures.

04/15 12:50

In 2025, Trump Reelected to the White House: New Tariff Policies and Customs Procedures Will Reshape U.S. Trade.

In early 2025, after Donald Trump returned to the White House, he quickly pushed for policy changes that significantly impacted American education and trade. The Trump administration cracked down on diversity, equity, and inclusion programs and reformed the student loan system. On April 2, it announced a 10% tariff on imported goods, excluding those from Canada and Mexico, and imposed tariffs of up to 145% on Chinese goods. The U.S. Customs and Border Protection Agency strengthened enforcement, posing challenges for e-commerce. Under the United States-Mexico-Canada Agreement (USMCA), goods that meet the standards can still be traded duty-free.

04/15 09:48

A CNBC survey reveals American consumers' pessimistic views on the economic outlook, which contrasts with the White House's optimistic expectations.

White House officials state that the U.S. economy is stable and poses no risk of recession, but surveys from CNBC and the Federal Reserve Bank show that consumers and businesses are pessimistic about the economic outlook. The surveys indicate that bringing manufacturing back to the U.S. is challenging, tariff policies are putting more pressure on businesses and consumers, the consumer confidence index is dropping, and corporate executives are warning that recession risks are rising. This highlights the gap between the White House's optimistic outlook and the public's feelings.

04/15 08:50

China suspends accepting Boeing planes in response to the United States' 125% tariff, which poses a significant challenge for Boeing.

On April 15, 2025, the Chinese government ordered domestic airlines to suspend the acceptance of Boeing aircraft and stop purchasing related equipment in response to the United States imposing a 125% tariff. This action challenges Boeing in the Chinese market, and China is considering providing assistance to airlines leasing Boeing aircraft to ease cost pressures.

Tariffs Delayed by 90 Days, Companies Rush to Ship

The Trump administration announced in early April that a new round of "reciprocal tariffs" on most countries, excluding China, would be delayed by 90 days. Although Chinese imports still face tariffs as high as 145%, this delay provides a brief respite for the global supply chain. Companies are rushing to ship goods in advance to avoid potential high tariffs in the future, creating a surge in urgent orders.

According to a report by Freight News, manufacturers in Taichung, Taiwan's industrial hub, are working overtime, with some companies planning to clear a year's worth of inventory within three months. This rush to ship not only boosts export volumes but also increases pressure on logistics networks, leading to tight capacities at ports and on shipping lines, and rising freight rates.

Shipping Stocks Soar, Container and Air Freight Rise

Taiwan's shipping stocks quickly responded to the favorable policy, with the stock prices of the three major container companies, Wan Hai (2615), Yang Ming (2609), and Evergreen (2603), soaring. Wan Hai and Yang Ming even briefly entered the top five in trading volume on the Taiwan Stock Exchange. The Shanghai Containerized Freight Index (SCFI) has risen for three consecutive weeks, reflecting strong demand for U.S. line freight rates.

Wan Hai, which focuses on Asian short-sea routes, saw its March revenue increase against the trend, showing resilience. Mid-sized shipping stocks like T.S. Lines (2613) also hit the daily limit, indicating market expectations for regional replenishment and short-chain logistics.

In air freight, EVA Air (2618) and China Airlines (2610) also benefited from the rush to ship and the recovery in tourism. China Airlines' March revenue reached NT$17.324 billion, with freight revenue increasing nearly 27% year-on-year; EVA Air set a new record for March with NT$18.224 billion, with freight revenue up 21.38% year-on-year. Starlux Airlines and Tigerair Taiwan also achieved record quarterly revenues due to falling oil prices and rising travel demand.

Institutional Strategy: Yuanta Securities Recommends Bullish Stance Until June

In response to the short-term benefits brought by the rush to ship, institutional investors are actively adjusting their strategies. Yuanta Securities points out that shipping stocks have seasonal characteristics and recommends a bullish strategy until June, highlighting Wan Hai, Evergreen, Yang Ming, EVA Air, and China Airlines as beneficiaries.

Additionally, institutional observations indicate that although March revenue experienced slight fluctuations due to post-Lunar New Year demand adjustments, the overall trend remains upward, especially with the rebound in exports from Asia and Southeast Asia, supporting U.S. line freight rates and shipping performance.

T3EX Global Holdings Increases Investment in Yang Ming Marine Transport

Amid institutional optimism, freight forwarder T3EX Global Holdings (2636) also shows strong confidence. According to announcements, T3EX purchased 4,300 lots of Yang Ming Marine Transport shares between January 9 and April 14, at an average price of NT$67.88 per share, with a total investment of NT$292 million. Including shares acquired through private placements and market operations, T3EX currently holds 20,825,577 shares of Yang Ming, with a market value exceeding NT$1.53 billion, accounting for a 0.6% stake.

T3EX Chairman Yen Yi-Tsai remarked that in the face of global political and economic uncertainties and fluctuating tariff policies, the shipping market is like "hidden currents and turbulent waves," requiring flexible judgment. This increase in investment aligns with major information disclosure standards, indicating high expectations for Yang Ming's future operations and dividend returns.

Additionally, T3EX is expanding its global presence, with its board approving two acquisitions in March. The company will invest US$10.32 million to acquire a 60% stake in South Korea's Skymaster Express Inc and increase its stake in Japan's THI Japan from 51% to 90%, strengthening its logistics network in Northeast Asia.

Market Data and Spot Freight Rate Trends

According to Xeneta data, the spot freight rate for a 40-foot container from mainland China to the U.S. East Coast rose 9% in a single day on April 1, reaching US$322. Shipping companies generally report that customers currently prefer to ship at spot rates to avoid signing long-term contracts during periods of high volatility. This has led to continued increases in spot market freight rates, further boosting short-term revenue for shipping companies.

Institutional investors point out that the second quarter is typically the off-season for shipping, but the rush to ship may lead to an "off-season not being off" situation. Wan Hai's General Manager Hsieh Fu-Lung also mentioned at an investor conference that customers still prefer to sign annual contracts, with long-term contract prices expected to rise by 20% to 30% compared to last year.

References

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