Global trade and logistics are navigating a turbulent phase, with disruptions stemming from new US reciprocal tariffs and compounded by geopolitical tensions and unpredictable weather conditions. According to Dimerco Express Group’s August 2025 Asia Pacific Freight Report, these disruptions are amplifying supply chain challenges and causing ripple effects across air and ocean freight markets.
From capacity reductions to congestion and soaring rates, businesses operating within global trade corridors must brace for enduring instability and adapt accordingly.
Impact of Reciprocal Tariffs on Freight Volume
The recent implementation of country-specific reciprocal tariffs by the US has triggered a seismic shift in global freight activity. Following a surge in shipments from Asia during July, freight volumes sharply receded once the tariffs took effect.
This abrupt decline leaves both air and ocean freight markets grappling with instability.
Ocean Freight Adjustments
To counter oversupply issues caused by declining demand, ocean carriers have reduced Asia–US capacity by 6.2 percent this month. Additionally, carriers are resorting to blank sailings, a strategy to limit the availability of shipping services and align better with decreased demand.
These measures highlight the complex balancing act carriers must perform to stabilize freight rates amid uncertain market dynamics.
Mixed Trends in Air Cargo
Unlike ocean freight, the air cargo market is witnessing mixed trends. Certain trade lanes face capacity shortages, where demand far exceeds availability, while others report an oversupply of space.
This fragmentation underscores the uneven effects of tariffs across different routes and regions.
Regional and Port-Specific Challenges
As the impacts of tariffs ripple across Southeast Asia, ports are under mounting pressure. Congestion and rate hikes are becoming major pain points for the region—a telling indicator of how deeply global policies influence localized logistics.
Southeast Asia’s Struggles
- Malaysia’s Port Klang: Vessels waiting for up to 70 hours reflect severe congestion.
- Vietnam and Thailand: Facing space shortages as shippers rush to meet tariff deadlines.
Shippers in these areas must contend with rising costs and adaptability hurdles. Effective planning is even more critical to safeguarding supply continuity.
Geopolitical and Weather Disruptions
Tariffs aren’t the sole culprits behind freight challenges. Geopolitical tensions, such as Houthi attacks in the Red Sea, have forced vessels to reroute around Africa.
These detours significantly increase transit times and costs for supply chain stakeholders.
Compounding this scenario are weather disruptions, particularly the typhoon season across South China, Hong Kong, Taiwan, and the Philippines. Flight rescheduling and operational delays continue to affect both ocean freight schedules and air cargo reliability.
As these disturbances overlap, shippers and carriers are facing mounting challenges in managing time-sensitive shipments.
Global Freight Market Outlook Through Q4
The freight landscape is far from stabilizing as we head into Q4 of 2025. Northern Europe’s major ports are already seeing severe congestion, with no immediate relief in sight.
Australia’s ocean freight rates are rising due to robust demand. Indian authorities are recommending shrink wrapping shipments during the monsoon season to preserve shipment integrity.
In the US, perishables continue to dominate Los Angeles–Asia air freight capacity.
- Stay Adaptive: Diversify trade lanes and service providers to mitigate regional risks.
- Monitor Trends: Regularly analyze freight reports and forecasts.
- Prepare for Rate Hikes: Build pricing contingencies into budgets.
Conclusion: Building Supply Chain Resilience
As global logistics continue to face turbulence from tariffs, geopolitical events, and weather-induced disruptions, businesses must rethink their approach to supply chain management.
Proactive decision-making and regional insights will remain critical to navigating this challenging freight market.
Here is the source article for this story: Global logistics face turbulence from tariffs, extreme weather: Report