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For the past few years, the air cargo market has greatly benefited from international e-commerce. According to the International Air Transport Association (IATA), 80% of e-commerce is transported by air and makes up upwards of 30% of total air cargo volume. Rethinking supply chains is a reader-supported publication.
The ceasefire is also restoring air cargo capacity to the Gulf region after some airspace closures on Monday. And aside from a tentative agreement with the UK, the US still reports only limited progress in negotiations with many of its largest trading partners like the EU , Canada , and Vietnam. America rates climbing to $3.00/kg
Home Transpacific ocean rates continue to slide; Air cargo out of the Middle East still recovering – July 08, 2025 Update The Freightos Weekly Update keeps you informed on international freight with key economic data, demand trends, and rate insights. China – Europe prices are down 12% in the last month to $3.35/kg,
US demand for China-made goods ebbs on tariff worries; ocean shipping rates drop Rates for shipping cargo containers from China to the U.S. tariffs disrupt the fast-fashion industry that relies on imports of low-cost clothes from China, Vietnam, and other Asian countries.
This was evident in the apparel industry, where brands such as Nike faced delays after tariffs on Chinese textiles prompted a shift to suppliers in Vietnam and Bangladesh. The company reportedly plans to shift 15% to 20% of its production to India and Vietnam by 2026, reducing exposure to U.S.China tariffs.
Despite dropping volumes out of China and some increase in demand out of other countries like Vietnam, transpacific container rates were level this week as carriers have successfully reduced capacity to current volume levels through a significant number of blanked sailings and service adjustments.
Studying economics at Yale, Smith’s 1965 term paper pitched the idea of creating a logistics company that would carry only cargo, and do so for a package’s end-to-end journet, such that a package could be delivered almost anywhere in the US overnight. Click here to send us your comments The story is well known.
and Vietnam have been far short of comprehensive, leaving many details unclear. Featured Product Popular Stories End to De Minimis Slows Flow of Air Cargo from China to U.S. Most of the tariff rates, however, were largely in line with what Trump had already announced the nations were likely to face.
Dockworkers, Port Employers Set to Restart Talks Bloomberg Vietnam Inks Deals to Buy $3 Billion U.S. has begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows despite the long-simmering tariff war between the U.S. and Asia’s biggest economy. and Asia’s biggest economy.
Apparel and footwear production hubs in Asia, including China and Vietnam, face elevated tariff rates as the White House pushes for new trade deals. The company and its retail peers are trying to manage supply chains that have been upended by U.S. President Donald Trump’s trade wars.
While prices to Long Beach from both Shanghai and Vietnams Saigon Port increased more than 40% between the time of the reciprocal tariff announcement on April 2nd and their start date on April 9th, since then Shanghai – Long Beach rates have fallen more than 30% while prices out of Saigon have remained at their elevated level.
Interestingly, while rates from China have declined, prices from Taiwan and Vietnam have remained elevatedlikely reflecting importers’ rapid pivot to alternative sourcing markets. Cash Flow Crunch Cash flow is always top of mind for small business, especially importers who have to front payments for their cost of goods.
It appears that operational and procurement risks for beneficial cargo owners or shippers, in the short term, are minimal. The areas that will be deliberated in future articles are ocean shipping market landscape, freight procurement, reliability & visibility and the competitive landscape.
Examples are: Samsung Electronics , which is shifting part of its domestic phone production to Vietnam due to the rapid advance of COVID-19 in South Korea. It is also airlifting parts from China to its Vietnam operations. The Food Industry. It takes time to turn a moving ship around, though, so this will not happen immediately.
The impact on supply chains is particularly apparent in the following two broad areas— shipping and procurement of products/components/raw materials. Ports in the United States, The Netherlands, Britain, France, and elsewhere have reported a drop in cargo volumes ranging from around 5 percent in January to an estimated 25 percent in February.
A country of continued optimism remains that of Vietnam , which has been the go-to country for businesses seeking to manage supply network risk exposure in China. The IHS Markit Vietnam Manufacturing PMI® rose again to a level of 54.3 Inflationary pressures reportedly remain a concern. for February, up from 53.7 reported for January.
In 2017, Smith & Nephew expanded its use of business network and cloud-based applications to support a centralized, efficient procurement process for managing spending from end to end. In 2018, Wayfair expanded its warehouse and logistics investments in the U.S. Recently, Wayfair turned its attention toward first-mile delivery as well.
A further factor was that air cargo rates are now down upwards of 80 percent because of lower volumes and excess capacity among carriers and commercial airlines. Revenues for the FedEx Ground unit, this carrier’s engine of E-Commerce last-mile fulfillment, came in at $300 million below forecast.
Despite dropping volumes out of China and some increase in demand out of other countries like Vietnam, transpacific container rates were level this week as carriers have successfully reduced capacity to current volume levels through a significant number of blanked sailings and service adjustments.
Though country-to-country level data shows rates to the US have increased slightly from origins like Vietnam since the tariff pause, prices from China despite reports of a sharp drop in demand have surprisingly not collapsed. On the overall lane level FBX Asia – N. America rates eased only slightly last week.
In line with these pandemic times, while the ASEAN meeting was nominally held in Hanoi, Vietnam, it was a virtual signing ceremony that saw 15 countries in Asia Pacific become part of what is now the world’s largest free trade agreement, representing 30 percent of global gross domestic product and encompassing almost 2.3 billion people.
Freightos Terminal data shows that container rates from China, Taiwan and Vietnam to the Long Beach all climbed sharply following the April 2nd tariff announcements possibly reflecting the rush to load goods by April 9th when the reciprocal tariffs went into effect.
This trend was apparent in the increases in US trade with Mexico and Canada, and with alternatives in Asia like Vietnam, India, Taiwan and Bangladesh at the expense of Chinese imports to the US which declined from 20% of total US imports in 2018 to 13% in 2024.
Many other countries, including Vietnam, are actively trying to negotiate a resolution instead. This final rush included a scramble not only to load containers, but some quick shift to LCL and air cargo too. In the meantime, the trade war intensification is increasing the likelihood of recession in the US and beyond.
While prices to Long Beach from both Shanghai and Vietnams Saigon Port increased more than 40% between the time of the reciprocal tariff announcement on April 2nd and their start date on April 9th, since then Shanghai – Long Beach rates have fallen more than 30% while prices out of Saigon have remained at their elevated level.
Volumes in March and April were 11% higher than in 2024 and featured one of the strongest Aprils on record , though some of that growth was from countries other than China, like Vietnam and Thailand. Freightos Air Index China – US air cargo spot rates were level last week at $5.28/kg, kg, down from about $5.50/kg
Though country-to-country level data shows rates to the US have increased slightly from origins like Vietnam since the tariff pause, prices from China despite reports of a sharp drop in demand have surprisingly not collapsed. On the overall lane level FBX Asia – N. America rates eased only slightly last week.
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