Asia's ports, especially those in China, will see a historical drop in throughput due to increased US tariffs and fluctuating volumes, S&P Global Ratings said in a Monday release.
A sustained plunge in the volume of goods between China and the US could happen if current tariffs on Chinese goods persist, S&P credit analyst Shanshan Yang said.
This could disrupt port activities and potentially lead to a diversion of shipping routes through countries in Southeast Asia, the analyst said.
Although a temporary surge in shipping within Asia might occur amid a rise in production during a pause in tariff implementation, this will not offset the substantial losses from the vital China-US routes, S&P said.
However, financially stable Asian port operators are strong enough to navigate the expected decrease in throughput this year, the rating agency said.
The operators might need to cut capital spending or dividends under long-term tariffs, according to the rating agency.
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