Anticipating potential tariffs and trade restrictions, many companies have expedited shipments—a practice known as front-loading—to avoid increased costs. This surge in early shipments has led to temporary spikes in demand, followed by periods of reduced shipping activity, causing fluctuations in freight rates.
For instance, in December 2024, ocean freight rates experienced notable increases due to heightened demand from front-loading ahead of anticipated tariffs and the early Lunar New Year.
The imposition of tariffs, particularly by the U.S. on imports from countries like China, Vietnam, Cambodia, Thailand, and Malaysia, has added complexity to global trade dynamics. These measures have increased costs for exporters and importers, influencing shipping volumes and freight rates.
The U.S. solar market, for example, has been notably affected, with tariffs leading to increased costs and potential reductions in planned installations.
Also read, BEAMS Lands in North America Plans to Open New Store
The freight market is expected to remain volatile due to Trade Shifts. Companies are adjusting supply chains in response to tariffs, with some relocating manufacturing from China to Southeast Asian countries to mitigate costs. Moreover, introducing new container ships in 2025 could lead to overcapacity, potentially driving down freight rates.
