Global Freight Market Strains Under Tariffs and Capacity Crunch

Global Freight Market Strains Under Tariffs and Capacity Crunch

The global freight landscape is currently experiencing significant strain, marked by escalating costs and tightening capacity, according to a recent report by Dimerco Express Group for June 2025. This complex scenario is primarily driven by the ongoing impacts of US-China tariffs, coupled with surging demand in specific regions and persistent port congestion across major trade lanes. These factors are reshaping logistics strategies for B2B businesses worldwide, signaling a potentially volatile summer shipping season.

The report highlights that the latest round of US tariffs on Chinese goods, combined with China’s temporary suspension of tariffs on US semiconductors, has triggered a sharp increase in shipments. Businesses are observed to be rushing to move goods before the 90-day reprieve, ending in August, which is leading to unexpected surges in shipping volumes from key manufacturing hubs like Vietnam, Taiwan, and South China. This urgency is placing immense additional strain on already limited air and ocean freight capacity, pushing rates upwards. Ocean freight rates, in particular, are climbing sharply, with carriers resorting to canceling sailings to manage capacity and imposing peak season surcharges in June. Experts project that US-bound spot rates could reach as high as $8,000 per forty-foot equivalent unit (FEU) this month.

On the air freight side, capacity remains notably tight, especially in Southeast Asia and Taiwan. Airlines are actively diverting resources to transpacific and Latin American routes, while increased order volumes and revised flight schedules are further squeezing available space for shipments from North Asia to the US. Concurrently, European ports continue to grapple with congestion stemming from labor shortages, strikes, and disruptions along inland waterways, adding to overall transit times and costs. In North America, the influx of summer shipments, particularly perishables, and limited flight availability due to tariff-related airline adjustments are creating added pressure at key ports. For the semiconductor sector, a significant realignment is underway, with China’s temporary easing of tariffs boosting chip-related exports, leading logistics providers to closely monitor developments as the 90-day window approaches its close in August, which could once again shift sourcing patterns and freight flows.

For your company, Shiv’s Assets Group, involved in exporting building materials like AAC Fly Ash Blocks and TMT Bars, these developments mean heightened attention to shipping costs and lead times. The volatile nature of freight rates and capacity shortages could impact your ability to deliver products efficiently and competitively. It becomes crucial to engage closely with your logistics partners, explore diversified shipping routes, and potentially consider securing freight capacity in advance to mitigate these market pressures. Adapting to these shifting global freight dynamics is essential for maintaining robust B2B trade operations.

Source: Dimerco Express Group Report / Fibre2Fashion