Recession looms as tariffs turn trade upside down

Tariffs are driving global markets into recession, succumbing to the inevitable supply and demand imbalance as carrier capacity rises and demand diminishes.

Shipping lines are struggling to maintain a balanced trade, having already withdrawn some 434,000 TEUs of Pacific capacity in week 16, with more cuts to come on 1 May, according to Hong Kong consultancy Linerlytica, which added that utilisation on ships had also fallen by 5% on the vessels still operating.