THE Bank of Finland estimates GDP growth is expected to slow down 0.7 per cent due to the US-China trade war that began in March 2018 after the US introduced sanctions on Chinese steel imports at 25 per cent, reports London's Ship Technology.

Global investments and manufacturing purchasing indices have also been hindered by tariffs, causing volatility in share prices worldwide.

Greater freight rate volatility was one result from the trade war. Drewry senior manager for container research Simon Heaney stated that transpacific prices increased throughout 2018 as cargo owners tried to move shipments before deadlines, while Vietnam saw massive price increases in the US market.

"Transpacific rate volatility settled down in 2019, but after Covid-19 arrived, transpacific rates went into the stratosphere from June 2020 due to a combination of factors, including higher-than-expected US demand and shortages of available ships and equipment," said Mr Heaney.

BIMCO shipping analyst Emily Hannah Stausboll stated tanker shipping was one of the sub-sectors that saw a big change because of the increase in tariff prices.

"Also, the pulling out of the Iran nuclear deal and higher tensions with Iran have caused ripple effects in the tanker market," said Ms Stausboll.