In view of the introduction of US tariffs, ITCO will be publishing a series of Bulletins on the possible impact on the tank container industry. Please find below Bulletin 1
Trump’s “Reciprocal Tariffs” Now in Effect
In April 2025, the Trump administration introduced a series of “reciprocal tariffs,” triggering widespread implications across international trade and transport. The tank container sector is among the most affected.
Trade Volumes Drop
The higher import tariffs are increasing product costs, dampening demand—especially for chemicals and petroleum products, which make up the bulk of tank container cargoes.
Rising Costs for Operators
Shipping companies face steeper operational expenses, leading to elevated freight rates. These higher costs could reduce competitiveness in the international market.
Route and Logistics Adjustments
To bypass tariffs, carriers are rerouting shipments through alternative ports or countries. While this can offer short-term relief, it introduces delays and complicates supply chain planning.
Market Response Snapshot
- Stockpiling Surge: Companies rushed to increase inventory before tariffs kicked in, creating a brief boost in shipment volumes.
- Contract Revisions: Businesses are now renegotiating supply contracts and delivery terms, with potential legal and financial ripple effects.
What This Means for You
The industry is navigating a period of adjustment. Now is the time to reassess risk strategies, review contractual terms, and prepare for further shifts in trade policy. Staying informed and adaptable will be key to managing the months ahead.
If you have insights or comments to share, please contact me:
Paul Gooch
President, ITCO
president@itco.org
