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Fibre2Fashion
5 days ago
- Business
- Fibre2Fashion
Global logistics face turbulence from tariffs, extreme weather: Report
Significant global supply chain disruptions are expected as new US country-specific reciprocal tariffs alter global trade flows, according to Dimerco Express Group's latest Asia Pacific Freight Report—August 2025. A surge in shipments from Asian exporters in July was followed by sharp volume declines once tariffs took effect, destabilising both air and ocean freight markets. Ocean carriers are cutting Asia–US capacity by 6.2 per cent this month and scheduling blank sailings to counter oversupply, while air cargo trends vary by region, with some trade lanes facing capacity shortages and others excess space. The global supply chain disruptions are expected from new US tariffs, volatile demand, and extreme weather, according to Dimerco Express Group's August 2025 Asia Pacific Freight Report. Ocean capacity cuts, port congestion, and Red Sea rerouting are straining logistics. With tariff uncertainty, typhoon risks, and vessel supply imbalances, it urged shippers to stay flexible and monitor key hubs. Southeast Asia has seen significant rate hikes and congestion—Malaysia's Port Klang is reporting 70-hour vessel waits, while Vietnam and Thailand face space shortages ahead of tariff deadlines. Geopolitical tensions and weather disruptions are compounding challenges. Houthi attacks in the Red Sea are forcing vessels to reroute around Africa, extending transit times and raising costs, while typhoon season in South China, Hong Kong, Taiwan, and the Philippines is causing further delays. Severe congestion at Northern Europe's major ports is expected to persist into Q4. In regional highlights, Australia is experiencing rising ocean freight rates from strong demand, India is advising shrink wrapping during the monsoon season, and Los Angeles–Asia air capacity is dominated by perishables, with some shipments diverted to Seattle. 'With the updated US tariffs taking effect on August 1, shippers are unsure how to plan their shipping schedules. This is especially true for key manufacturing and transit hubs such as Singapore, India, Taiwan, and China, where final tariff announcements are still pending,' said Kathy Liu, vice-president (VP) of global sales and marketing at Dimerco Express Group . 'At the same time, August is peak typhoon season in South China, Hong Kong, Taiwan, and the Philippines, which may cause delays and flight rescheduling in these areas.' 'In the US, unclear tariff policies are causing unpredictable shipping and sourcing patterns. Although a temporary tariff pause has helped in the short term, higher tariffs are expected in August. This is leading to rushed shipments now but may result in reduced trade and higher costs later. With conflict risks, tariff uncertainty, and vessel supply imbalances, the ocean freight market is likely to stay unstable. Shippers should stay flexible and prepare for continued disruptions,' said Alvin Fuh vice president—Ocean Freight Dimerco Express Group. The report covered 15 regional markets, providing forecasts, pricing outlooks, and risk management strategies to help businesses navigate volatile conditions through the remainder of 2025. Fibre2Fashion News Desk (SG)
Yahoo
02-08-2025
- Business
- Yahoo
Global Air Cargo Growth Stalls as Tariffs Hammer North American Airlines
Air cargo demand grew by a modest 0.8 percent in June, held back heavily by North American airlines on global routes, which contracted 6.1 percent year over year. In a monthly market analysis, the International Air Transport Association (IATA) attributed the paltry growth to U.S.-enforced tariffs, which have delivered uncertainty across global trade flows. More from Sourcing Journal Resetting Asia's Apparel Map With a New World Sourcing Order Trump Announces Dozens of New Reciprocal Tariff Rates Trump Tariffs Face Sharp Scrutiny in Appeals Court Freight benchmarking platform Xeneta reported similar numbers for June, with a 1 percent year over year jump in volumes. 'The June air cargo data made it very clear that stability and predictability are essential supports for trade,' said Willie Walsh, IATA's director general. 'Emerging clarity on U.S. tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the 'deals' being struck are resulting in significantly higher tariffs on goods imported into the U.S. than we had just a few months ago.' The Asia Pacific Freight report from international freight forwarder Dimerco Express Group indicated that shippers are unsure on how to plan their shipping schedules as original reciprocal tariffs on countries that haven't struck a new trade deal with the U.S. go back into effect Friday. The report noted that this rings especially true for markets like Singapore and India, with President Donald Trump already slapping a 25 percent duty on the latter ahead of a new agreement. In the months prior, airlines have had to adjust accordingly. Carriers like UPS, which saw China-to-U.S. volumes sink nearly 35 percent across May and June due to briefly elevated tariffs and the end of the de minimis trade provision, have been adjusting to the new trade order by redeploying capacity on other routes. According to IATA, the Asia-to-North America corridor remains the 'most concerning' of all lanes since it has contracted for the second consecutive month. It is the largest and most active cargo route, with total trade flows dropping by 4.7 percent in June. The drop is an improvement from the annual drop recorded in May, when cargo tonne-kilometers (CTK) declined 10.7 percent in the weeks after the duty-free de minimis exemption was closed to Chinese goods. Fashion, consumer goods, technology and electronics that were typically shipped between April and June ahead of the summer retail cycle, were largely front-loaded this year, as shippers accelerated deliveries to avoid the impact of incoming tariffs. The IATA said other goods are currently facing shipment delays, in some cases because production has relocated to countries with more favorable exporting conditions. For North American airlines, June performed worse than May, with a 2.3 percentage point sequential decline from the previous month. 'The economic damage of these cost barriers to trade remains to be seen,' Walsh said. 'In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization.' International airlines kept the wider total afloat, with a 1.6 percent annual increase in CTKs. Air cargo growth is still robust for airlines out of the Asia Pacific region at 9 percent year over year, showing a slight 0.3 percentage point increase from the prior month. European airlines saw a 0.8 percent annual increase, down 0.4 percentage points compared with May. Global air cargo capacity jumped 1.7 percent year over year to reach 51.4 billion available cargo tonne-kilometers (ACTK) in June. Capacity was reduced by 2.2 percentage points compared to May, in what IATA calls 'a clear sign of capacity adjustments to accommodate air cargo's softer demand.' Capacity from North American airlines decreased by 5.1 percent year-on-year, the largest decrease among all the trade lanes. Cargo yields reported a 2.5 percent year-over-year decrease, IATA said. However, the market has absorbed part of the initial shock, slightly rebounding 0.9 percentage points compared to May. Xeneta calculated that air cargo spot rates dropped 4 percent year over year, marking the second straight month of declines tracked by both the firm and IATA. According to Xeneta, supply of capacity overtook demand for the first time in 19 months. 'It's wrong to think falling air cargo rates on key trade corridors automatically represent a boon for shippers. With weaker consumer confidence, low rates are little comfort when underlying demand is deteriorating,' said Niall van de Wouw, Xeneta's chief air freight officer, in a blog post on July 4. Fuel prices play into the rate declines. The June jet fuel price was 12 percent lower than the year prior, a fourth consecutive year-over-year monthly decline, IATA said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
30-07-2025
- Business
- Fibre2Fashion
Shifting demand, tariffs make APAC container shipping fickle: Dimerco
Container shipping in the Asia-Pacific (APAC) region remains volatile due to shifting demand and US tariffs, according to Taiwan-headquartered Dimerco Express Group, which recently said carriers have increased blank sailings on Asia-to-US routes to manage excess capacity. Many shippers frontloaded ahead of the August 12 tariff deadline, weakening July volumes. Carriers will cut Asia-to-US capacity by 6.2 per cent in August, the company said in its 'APAC Freight Report: August 2025'. APAC container shipping remains volatile due to shifting demand and US tariffs, according to Taiwan-headquartered Dimerco Express Group. Carriers have raised blank sailings on Asia-to-US routes to manage excess capacity, it said. Many shippers frontloaded ahead of the August 12 tariff deadline, weakening July volumes. Carriers will cut Asia-to-US capacity by 6.2 per cent in August, the company said. 'In the US, unclear tariff policies are causing unpredictable shipping and sourcing patterns. Although a temporary tariff pause has helped in the short term, higher tariffs are expected in August. This is leading to rushed shipments now but may result in reduced trade and higher costs later,' said Alvin Fuh, vice president, ocean freight, at the company. 'With conflict risks, tariff uncertainty and vessel supply imbalances, the ocean freight market is likely to stay unstable. Shippers should stay flexible and prepare for continued disruptions,' he noted in a company release. In Malaysia, Port Klang remains congested, with vessel waiting times reaching up to 70 hours. Some carriers may choose to skip the port entirely. Port congestion and container shortages at Laem Chabang in Thailand have improved, easing some of the earlier operational challenges. Growing interest from companies expanding into the Australian market is also driving up cargo demand. With the ongoing monsoon season in several parts of India, shrink wrapping is recommended to protect cargo from potential water damage. Fibre2Fashion News Desk (DS)
Fibre2Fashion
07-06-2025
- Business
- Fibre2Fashion
Tariffs, capacity crunch strain global freight market: Dimerco
The global freight landscape is shifting as policy changes, regional bottlenecks, and trade realignments reshape logistics strategies, according to the June 2025 Asia-Pacific Freight Market Report by Dimerco Express Group. The report highlights ongoing impacts of US–China tariffs, rising air and ocean freight rates, and tightening capacity at key export hubs, signalling a potentially volatile summer shipping season. The report notes that US tariffs on Chinese goods, combined with China's temporary suspension of tariffs on US semiconductors, have triggered a sharp increase in shipments. Businesses are rushing to move goods before the 90-day reprieve ends in August, leading to shipping surges from Vietnam, Taiwan, and South China. This urgency is placing additional strain on already limited air and ocean freight capacity. Ocean freight rates are climbing sharply as carriers cancel sailings to manage capacity. In May, 8 per cent of East-West sailings were cancelled, and peak season surcharges are being applied in June. As a result, US-bound spot rates could reach as high as $8,000 per FEU in June. Dimerco's June 2025 Freight Market Report highlights rising freight rates, tight capacity, and shifting trade flows due to USâ€'China tariffs and China's temporary semiconductor tariff pause. Surging demand from Vietnam, Taiwan, and South China is already straining air and ocean freight. Port congestion in Europe and North America adds pressure. On the air side, airfreight capacity remains tight, especially in Southeast Asia and Taiwan. Airlines are diverting resources to transpacific and Latin American routes, while increased order volumes and revised flight schedules are further squeezing space from North Asia to the US. Meanwhile, European ports continue to face congestion due to labour shortages, strikes, and disruptions along inland waterways. In North America, summer shipments of perishables and limited flight availability—due to tariff-related airline adjustments—are creating added pressure at key ports, as per the report. Finally, the semiconductor sector is seeing notable realignment, as China's temporary easing of tariffs boosts chip-related exports. With the 90-day window set to close in August, logistics providers are closely monitoring developments, as changes could again shift sourcing patterns and freight flows. "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." 'We're seeing increased US 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, vice president of global sales and marketing , said. 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. Fibre2Fashion News Desk (RR)
Associated Press
03-06-2025
- 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.
