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Associated Press
3 days ago
- Business
- Associated Press
Dimerco's June Freight Report Tracks Tariff Impacts, Capacity Strains, and Strategic Route Shifts
'We're seeing increased U.S. demand across sectors, but most of it is still moving by ocean. We expect airfreight to pick up mid-June as lead times tighten and spot options shrink.'— Kathy Liu, VP of Global Sales and Marketing at Dimerco Express Group TAIPEI, TAIWAN, June 3, 2025 / / -- The June 2025 Asia-Pacific Freight Market Report by Dimerco Express Group shows a freight landscape in flux, as policy shifts, regional bottlenecks, and trade realignments reshape global logistics strategies. The report highlights the continued ripple effects of U.S.–China tariff actions, rising air and ocean freight rates, and tightening space across key export hubs ahead of a potentially volatile summer shipping season. Key Market Developments: ----------------------------------- ⦿ Tariffs Driving Demand Shifts: U.S. tariffs on goods from China, combined with China's temporary easing of semiconductor tariffs, have triggered a surge of shipments as businesses race against a 90-day deadline. Companies across Vietnam, Taiwan, and South China are accelerating their shipping schedules, creating strain on already limited air and ocean freight capacities. ⦿ Ocean Freight Rates Climb as Carriers Cancel Sailings: With 8% of East-West sailings cancelled in May and peak season surcharges taking effect in June, carriers are leveraging limited capacity to push up rates. U.S.-bound ocean spot rates are expected to rise to as much as USD 8,000 per FEU this month. ⦿ Airfreight in Flux: Airfreight capacity remains limited in key regions, particularly Southeast Asia and Taiwan, as airlines redirect resources toward transpacific and Latin American routes. Simultaneously, spikes in orders and airline schedule adjustments are tightening capacity further from North Asia to the U.S. ⦿ European Congestion and U.S. Port Constraints: Ongoing labor shortages, strikes, and disruptions in inland waterways continue to delay European port operations. Meanwhile, North American ports face additional pressures from summer shipments of perishables and fewer available flights due to tariff-related adjustments. ⦿ Semiconductor Sector Realignment: China's suspension of retaliatory tariffs on U.S. semiconductors is boosting chip-related exports. Logistics providers are watching closely as the 90-day reprieve expires in August, potentially reshaping sourcing strategies and shipping flows again. 'Demand is shifting quickly, and the market is recalibrating week by week,' said Alvin Fuh, Vice President of Ocean Freight at Dimerco. 'Shippers are accelerating bookings to stay ahead of volatility, but capacity remains tight and unpredictable.' Kathy Liu, Vice President of Global Sales and Marketing, added, 'We're seeing increased U.S. demand across sectors, but most of it is still moving by ocean. We expect airfreight to pick up mid-June as lead times tighten and spot options shrink.' The June report offers lane-level snapshots and updated space forecasts for all major Asia-Pacific, North America, and Europe trade lanes, with insights designed to help shippers stay agile in a shifting policy and capacity environment. Click here to get access to the full June 2025 report, as well as review past reports. To schedule interviews with Dimerco's logistics experts, get in touch with Gitte (details below). About Dimerco -------------------- Dimerco Express Group integrates air and ocean freight, trade compliance, and contract logistics to enhance global supply chain effectiveness. The majority of Dimerco's logistics projects connect Asia's key manufacturing hubs with North America and Europe. From its roots as an air freight forwarder in Taiwan in 1971, Dimerco now operates 150+ offices, 80 contract logistics sites, and 200+ strategic partner agents worldwide. For more information, visit Gitte Willemsens CHARLIE PESTI +32 489 36 22 31 email us here Visit us on social media: LinkedIn Facebook YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
International Business Times
16-05-2025
- Business
- International Business Times
Navigating the Trade Tempest: Strategic Adaptation in Freight Forwarding
In a time of escalating tariffs, geopolitical uncertainty, and relentless supply chain disruption, the logistics world is being turned upside down. Tariffs on Chinese imports reached as high as 245%, putting intense pressure on cost structures and forcing companies to rethink not only where they manufacture, but how they move goods globally. What we're seeing isn't a temporary storm it's a fundamental restructuring of global trade. In this new reality, logistics providers have emerged as far more than service vendors. They are now indispensable strategic partners. The world doesn't just need another freight forwarder to move goods from A to B. The world needs a new breed of forwarder one that helps companies adapt, reconfigure, and thrive amid complexity. At Dimerco, we're stepping into that role. A good example is Vietnam. Many companies, as part of a China +1 strategy, are moving production there. But one decision to diversify sparks a dozen more questions: What are the tariff implications? How is Country of Origin determined when the goods are exported from Vietnam? How do you move massive production machinery across borders, especially second-hand equipment that faces regulatory scrutiny? What happens if you don't yet have a legal entity in Vietnam? And how do you cope with the fact that Vietnam's freight capacity is just a fraction of China's, with infrastructure challenges that impact lead times? These are not abstract concerns. Dimerco has already helped more than a dozen clients relocate to Vietnam, managing not just the shipping, but also customs advisory, site selection, warehousing, importer of record services, and legal navigation. We do the same in Thailand, Malaysia, Indonesia, and beyond. This is what it means to be more than a logistics provider we're on the front lines of global business transformation. India is another hot spot. Companies are increasingly eyeing India as a cost-effective, tariff-friendly alternative to China. But India's regulatory environment is notoriously complex, with regional and national rules that don't always align. That's why one of our fastest-growing services is our "Expand to India" program, which includes not just freight and customs support, but trade compliance, legal counsel, FTZ warehousing, and guidance on government expansion incentives. Even in the U.S., the need for strategic logistics has never been higher. Many importers are suddenly facing skyrocketing tariffs. Dimerco's customs and compliance team works with these companies to analyze trade data, calculate the financial impact, and identify proactive mitigation strategies. We even offer a free Tariff Impact Calculator to help businesses understand the stakes. And while much has been said about e-commerce and the removal of the de minimis exemption, it's important to clarify: Dimerco's primary focus is not individual parcels. We specialize in managing high-value shipments and large-scale logistics operations air and ocean freight, cross-border solutions, and regional warehousing strategies. But changes in trade policy affect everyone, and we pay close attention to the ripple effects they cause across the entire logistics ecosystem. Today's trade environment demands boldness, clarity, and expertise. It demands partners who don't just react but who lead. At Dimerco, we don't just move boxes. We help global businesses reimagine their supply chains and seize new opportunities. That's what the moment calls for. And that's what we deliver.
Yahoo
10-03-2025
- Business
- Yahoo
Global manufacturing is repositioning — but it's complicated
The shifting dynamics of global manufacturing and supply chain strategies have created an unprecedented moment of change for logistics professionals, businesses and policymakers alike. The China Plus One strategy, which encourages companies to diversify their manufacturing footprint beyond China, has gained traction due to rising labor costs, trade policy uncertainties and geopolitical tensions. However, as highlighted in discussions with Dimerco Express Group executives and industry experts, the execution of this strategy is far from simple. From infrastructure limitations and workforce shortages to regulatory hurdles and freight market volatility, companies pursuing diversification face a multitude of challenges. For years, multinational manufacturers have explored alternatives to China, but recent trade disputes and tariff policies have accelerated the transition. According to Kathy Liu, global sales and marketing director at Dimerco, the strategy began with labor-intensive industries, such as textiles and footwear, moving to countries like Vietnam and Thailand. More recently, high-value sectors, including electronics and semiconductors, have started shifting production to new markets. However, this transition is not merely a cost-cutting maneuver; it represents a structural shift in global supply chains that requires long-term planning and investment. One major factor is the U.S.-China trade war, with tariff announcements threatening to impose up to 60% higher duties on Chinese imports. While many manufacturers initially sought tariff relief by relocating production to Vietnam, India and Malaysia, trade compliance expert Karen Kenney warned that these so-called 'tariff-friendly' locations are becoming increasingly vulnerable to reciprocal tariffs, making the long-term benefits of relocation uncertain.'The president specifically said that folks would no longer be able to transship goods. What he meant by that was you won't be able to build a majority of the products in China and ship it through another country to get any sort of tariff benefit,' Kenny explained. Additionally, U.S. Customs and Border Protection is cracking down on transshipment practices, ensuring that companies cannot simply reroute Chinese-made components through another country to avoid tariffs. 'CBP knows where product components are coming from. They've invested in AI programs, and they have access to a lot of data. So even if you don't know where your products' components are coming from, CBP does, and eventually they're going to catch up with it,' Kenney said. Relocating manufacturing is not as simple as setting up a new factory. Dimerco executives emphasized that China has spent decades building an extensive supply chain ecosystem, including well-developed ports, highways and logistics hubs that cannot be easily replicated gaps in alternative manufacturing destinations lead to higher transportation costs, longer lead times and logistical bottlenecks. For example, limited deep-water ports in Southeast Asia prevent larger cargo vessels from docking, requiring costly transshipment through hubs like Singapore. Additionally, the availability and skill level of the workforce in new markets present a challenge. This level of coordinated workforce development is largely absent in many China Plus One destinations. 'In China, once there's a big factory planned for a location, they will have a deal with the government to create a local school to train those people. Then they will be transferred to that factory right after the training process. The government is very supportive in making sure that the workers in those factories are skilled and well trained. … I don't see this kind of arrangement in Southeast Asian countries,' said Liu. Companies shifting production to Vietnam or India must navigate cultural differences, language barriers and labor law variations that affect factory productivity. Some businesses moving to Mexico, for instance, have struggled with worker shortages and cultural differences in labor expectations, prompting a return to China. 'I have one client who has moved roughly 60% of their production to Mexico, and they're moving back to China because of the labor challenges they are experiencing there …,' Kenney said. 'Those challenges are twofold. One is a lack of skilled labor in their product line, and then the second is a cultural challenge [around working]. The staff are used to working fixed hours on a fixed schedule. There's more of a 'Do whatever it takes to get it done' mentality in some places, and in others it is if my job is X, I'm just doing X.' Given the vast number of variables at play, companies are increasingly turning to experienced logistics providers to manage the complexities of diversification. Deep regional expertise allows providers to offer customized solutions, such as multimodal transportation strategies that combine cross-border trucking with airfreight to bypass capacity constraints. For example, some companies in Thailand and Vietnam are leveraging Singapore's airport infrastructure to move goods more efficiently, while others are routing shipments through China to take advantage of its superior cargo capacity. Providers also play a crucial role in assisting businesses with factory relocations, particularly in handling the customs complexities associated with moving machinery and production equipment across borders. As Liu noted, many manufacturers underestimate the bureaucratic and compliance challenges of shifting operations. Regulations vary widely among countries, and navigating customs procedures in multiple jurisdictions can lead to significant delays if not properly managed. 'We see the crisis, but we also see the opportunity because over the last 54 years, we have made Asia Pacific logistics our strength,' said Jeffrey Shih, CEO of the China Plus One strategy remains a compelling risk management approach, recent developments suggest that companies are treading carefully. Many businesses have opted for a hybrid approach, maintaining some operations in China while gradually expanding into new markets to avoid overcommitting to any single region. This cautious approach is driven by uncertainty surrounding future tariff policies and the unpredictable nature of global trade relations. What's more, as geopolitical pressures mount, there is growing concern over foreign investment in infrastructure projects. Countries like China continue to play a major role in financing logistics and port developments in Southeast Asia, raising questions about long-term supply chain independence. The U.S. government, in particular, is wary of China's influence in global infrastructure investments, adding another layer of complexity to an already intricate supply chain landscape. Kenney pointed to the Panama Canal as an example of the U.S. being wary of Chinese influence. The discussions with experts reveal that while China Plus One offers opportunities for supply chain resilience, the path forward is fraught with challenges. 'The original idea of China Plus One is to avoid risk and to diversify the production line, which has become a good strategy now under the current U.S.-China trade war,' said Liu. Additionally, Kenney said, 'I would diversify your supply chain right now. I just wouldn't overcommit in any single market, and proceed slowly and plan carefully.' Articles by Grace Sharkey Retailers see both danger and potential in Trump's tariffs Flexport CEO: 'Every single member on your team should be using AI' Reports: Freight forwarder Forto looking for a buyer The post Global manufacturing is repositioning — but it's complicated appeared first on FreightWaves. Sign in to access your portfolio
