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China: China-US shipping routes overbooked as American businesses accelerate stockpiling

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Storyline: China-US shipping routes overbooked as American businesses accelerate stockpiling [Voice_over] During the 90 day tariff grace period between the U.S. and China, American companies who rely on products made in China are rushing to stock up their warehouses. More than 25 percent of Chinese products destined for the U.S. are exported from this port - Yantian, in southern China's Shenzhen City. At a distribution center nearby, cargo volumes have shot up by 60 percent since the tariff pause was announced. Shipping route manager Dong said booking a container slot on U.S. bound ships isn't easy these days. [Sound_bite] Dong Ying, manager, South China-North America Shipping Route, Longsail International Logistics Company Limited: "Basically, every day, we wake up and start working immediately. We are now booking container slots scheduled all the way to the end of June." [Voice_over] The increase in demand for freight transportation is driving up shipping costs for China-U.S. routes. Analysts say international shipping companies are dealing with a rush of orders and need time to increase their transport capacity. [Sound_bite] Li Cong, executive vice president, Cross-border E-commerce and Overseas Warehousing Branch, China Association of Warehousing and Distribution (CAWD): "The shipments need to be delivered rapidly in the following month to meet the pending order. Previously, many shipping companies have moved some of their transport capacity to routes to Europe or to the Latin American countries and they may need time to recover the capacity on the shipping lines to the United States. This will delay the products' arrival on the U.S. market and I believe, the shipping companies, the ports and the container manufacturers are currently working on this." [Voice_over] According to a joint statement released by China and the U.S. following a May 12th meeting in Switzerland, U.S. tariffs on Chinese imports will be reduced from 145 percent to 30 percent, while Chinese tariffs on U.S. goods will be cut from 125 percent to 10 percent for 90 days while additional negotiations take place. [Restrictions : No access Chinese mainland]

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