Geopolitical tensions and economic uncertainty continue to have an impact on global trade. With new U.S. tariffs rattling confidence, supply chains are being rerouted, capacity is tightening, and strategic realignments are accelerating across regions.
Tariff Shockwaves Ripple Through Global Trade
The imposition of U.S. tariffs on Chinese imports—and reciprocal duties on Canada and Mexico—is already having tangible effects. “Newly imposed U.S. tariffs on Chinese imports and reciprocal duties on Canada and Mexico are driving immediate shifts in sourcing and fulfilment strategies,” Dimerco’s report states.
Many companies are now rerouting freight through Southeast Asia and Mexico, taking advantage of temporary tariff exemptions and favourable trade agreements, such as the USMCA. This pivot highlights how agility is becoming a competitive advantage in the face of uncertainty.
“Carriers have begun adjusting their network strategies in response to recent tariff and policy announcements,” said Alvin Fuh, VP of Ocean Freight at Dimerco. “Logistics teams need to stay nimble, as regulatory complexity and shifting demand continue to drive freight volatility.”
Airfreight: Change of Course
The airfreight sector has taken a direct hit from the suspension of China’s e-commerce channel and ongoing trade uncertainty. Shipment volumes from China to the U.S. dropped by nearly 50% in April, and key carriers are reducing or cancelling freighter services.
“Since around April 20, charter flights from China to the US have been significantly reduced—many were either cancelled or re-routed,” explained Kathy Liu, VP of Global Sales and Marketing at Dimerco. “A lot of that capacity has shifted to destinations like Nuevo Laredo in Mexico and other parts of Latin America, where demand has actually gone up.”
Interestingly, regions such as Southeast Asia and Taiwan have maintained more stable shipping activity thanks to a 90-day U.S. tariff exemption, offering a brief window of opportunity for shippers.
“The most resilient shippers are those who are rethinking sourcing, leveraging regional partnerships, and securing capacity weeks ahead to avoid surprises,” Liu added.
Ocean Freight: Fewer Ships, Higher Rates
On the ocean side, carriers are aggressively managing supply. A significant number of blank sailings—especially on the Transpacific Eastbound route—have pushed spot container rates higher. Drewry’s World Container Index rose 3% in April, reflecting the industry’s effort to stabilise pricing amid softening demand.
Moreover, China’s extension of export restrictions on critical minerals and a new U.S. per-port-entry fee for Chinese-built vessels are raising long-term operational concerns for shipping lines.
“In 2025, we’re definitely seeing global supply chains becoming more fragmented,” said Alvin Fuh. “This shifting environment is pushing logistics teams to constantly optimize their operations to stay ahead of the game.”
Semiconductor Trade Faces New Risk
Another curveball for tech supply chains: China’s reclassification of semiconductor origin, which now hinges on where the wafers are fabricated, not just where they are assembled or tested. This change threatens to impose steep tariffs (up to 125%) on U.S.-designed chips, depending on the location of production.
Regional Insights: A Mixed Bag
- North America is experiencing early peak season congestion, with ports like Los Angeles and Dallas under pressure due to limited air and ocean capacity.
- Europe continues to struggle with port delays and labour shortages.
- Southeast Asia is navigating infrastructure bottlenecks, though overall export volume remains stable.
- Taiwan and South Korea are seeing tight capacity due to robust demand for tech-related cargo.
Agility is Non-Negotiable
Dimerco’s May Freight Report paints a clear picture: global logistics is in a phase of rapid realignment. With shifting tariffs, constrained capacity, and unpredictable regulations, businesses that thrive will be those that move fast, adapt early, and think regionally.
For logistics professionals, the message is clear—stay alert, stay flexible, and plan ahead.
