Freight Waves by Seabreeze – Trends and insights shaping logistics

• Geopolitics driving a search for new markets as demand softens

Softening global demand is pushing companies to look for new markets amidst rising geopolitical tension, especially as US-China trade disputes and tariffs reshape supply chains. Stakeholders are reporting reduced volumes in traditional trade lanes and are increasingly turning toward Southeast Asia, Latin America, and parts of Africa to diversify risk and capture upside. Economic uncertainty, inflation pressures, and regulatory frictions are accelerating this trend.

• FTZs could be useful for US firms as a hedge against tariff turmoil

With U.S. importers facing high and uncertain tariffs this year, interest in using FTZs and bonded warehousing is rising sharply. These special zones allow goods to be stored or processed without duties until they enter U.S. commerce—and in some cases, goods re-exported from FTZs can avoid duties altogether. The surge reflects companies trying to protect cash flow and reduce exposure while trade policy remains volatile.

• Air cargo demand up in H1: can carriers sustain this and balance capacity?

Global air cargo demand rose 5.5% year-over year in July, outpacing capacity growth. Asia Pacific saw the strongest surge, while Asia-North America experienced a decline. However, as the tariff-driven “frontloading” (shippers rushing to move goods before new US rates kicked in) fades, carriers are now facing excess capacity and pressure to rationalize flight schedules to maintain profitability.

• Loopholes Under Pressure as U.S. Ends Duty-Free Rule for Low-Value Imports

Many online sellers are being accused of exploiting the “de minimis” rule, which allowed imports under $800 to enter the U.S. duty-free, to dodge tariffs. With the U.S. now permanently ending this exemption (effective Aug 29, 2025), under-valuation and false invoices are coming under scrutiny. Customs and Border Protection is preparing to enforce stricter documentation and duty collection, aiming to close this loophole abused by fast-fashion platforms and others moving small packages into the country.