The two plus one possible effects for the shipping industry, but also for Greece, from the election of Donald Trump to the presidency of the USA are analyzed in “N” by the managing director of Vafias’ shipping group, Haris Vafias.
Vafias, who owns five shipping companies, three of which are listed on the New York stock markets, and manages tankers, bulk carriers and LPG carriers, makes it clear speaking to “N” that shipping is an activity that works best when it does not accept interventions.
Duties
Based on Trump’s election campaign, but also based on what we know from his previous term in the US presidency, potential imposition of duties on China and Europe will result in a reduction of cargo available for sea transport.
Trade changes will also occur if the Houthis stop attacks on commercial ships in the Red Sea. Regarding Greece, Vafias expressed his concern about the personal friendship of the newly elected US president Trump with the President of Turkey Recep Tayyip Erdogan and to what extent this will change the balance in our region.
Interventions
“Shipping does not need interventions. It is a global activity that works perfectly when it does not receive any type of intervention. Shipping needs nothing and asks for nothing. We are working very well,” Vafias said.
Nevertheless, he added that “a change, as we now have in the presidency of the USA, the most powerful country in the world, can also bring about changes in shipping trade.”
He explained: “Based on what the newly elected US president has said, some concerns have arisen in the shipping industry. As long as, of course, he implements what he has mentioned. The strongest of these concern the duties he has indicated that he will impose on China, and perhaps on Europe as well. This means less cargo at sea, therefore less work for ships.For example, if he imposes a 60% duty on Chinese cars, the US consumer will prefer to buy an electric car made in the US that will have a much lower price. And this, of course, will put pressure on fares since loads will be reduced.”
Conflicts
Another factor is the conflicts in the Middle East and Ukraine. “But even if he ends the war in Ukraine and the Middle East, as Trump has emphasized in his speeches, it will negatively affect the shipping industry. It is certain that we all want to stop the killing of innocent people.
Practically, however, it is a given that in case the Houthi attacks on commercial ships stop and the Suez Canal is “opened”, the ships will not choose the circumnavigation of Africa as a safe route, as they do now, gaining again about 14 days from their trip. An evolution that will reduce the artificial lack of capacity and put pressure on fares, the managing director of the Vafias Group emphasized.
Safety
Vafias also raised the issue of our country’s security. As he pointed out, the President of Turkey, Recep Tayyip Erdogan, is a personal friend of Trump.
“The relationship between the two men can positively affect US defense cooperation with Turkey and negatively affect US defense cooperation with Greece,” he noted.
