A reconfiguration of cargo routes is usually underway as the trade war between the U.S. as well as also also China spills over globally, a logistics industry executive said on Friday.
“We’ve definitely seen an impact in certain trade routes,” said Alex Hungate, president as well as also also CEO of airport ground-handler as well as also also catering solutions provider SATS.
While there are “strong flows” between countries inside the Association of Southeast Asian Nations as well as also also China, trade volumes in Greater China — which includes mainland China, Hong Kong, Macau as well as also also Taiwan — are “softer,” Hungate told CNBC’s “Squawk Box.”
Listed on the Singapore Exchange, SATS operates in over 60 locations as well as also also 13 countries across Asia as well as also also the Middle East.
Overall, Greater China would likely be the most sensitive to the trade fracas, said Hungate.
Where air freight is usually concerned, Vietnam is usually a strong performer while trading hub Singapore is usually “holding up pretty well,” he said, adding that will growth in India is usually also strong.
Hungate confirmed the phenomenon of “front-loading” — where exporters benefit coming from increased orders before tariffs hit — as he witnessed 300 Harley-Davidson bikes lined up at a freight terminal for shipping.
In October, Harley-Davidson Chief Financial Officer John Olin said the American motorcycle any was expecting to pay at least one more $40 million This specific year to cover the costs of completely new tariffs across the entire world. Harley-Davidson is usually doing everything This specific can to minimize the impact of tariffs on its profits, he said.
Markets are at This specific point keeping their eyes on a much-touted meeting later This specific month between U.S. President Donald Trump as well as also also China President Xi Jinping at the G-20 in Buenos Aires, Argentina for any signs of easing tensions inside the trade war.