Seabreeze Market Minute: Weekly Freight Insights

• Soft Airfreight Market Casts Doubt Over H2 Peak

Global air cargo is entering a slower phase: after a year of steady rate increases, spot rates dropped 4% year‑on‑year in May, reaching $2.44/kg—the first decline since April 2024—despite air cargo volumes rising about 6% . June also saw rates dip further as supply surpassed demand for the first time in 19 months, sparking concern that the traditional second-half “peak underperform season” surge may amid weakening consumer sentiment and mounting trade uncertainties.

•  Cargo Disruption: Low‐Value Goods Now Taxed in U.S.

Since early May, the U.S. has ended the de minimis rule, now imposing tariffs of up to 145% on low-value Chinese e-commerce parcels—later reduced to around 30%. As a result, air cargo demand from Asia to North America dropped 10.7% year-over-year in May, and low-value shipments plunged 43% month over-month. Carriers have rerouted shipments to Europe and Southeast Asia, and trans-Pacific freighter capacity has shrunk by approximately 11% due to reduced U.S.-bound demand.

•  Taiwanese shipping lines set to profit from proposed Vietnam tariff deal

Taiwan’s leading shipping lines—Evergreen, Yang Ming, and Wan Hai—are set to benefit from a proposed U.S.–Vietnam tariff deal, having already launched additional intra-Asia routes to Vietnam. The agreement is expected to shift trade flows and create new opportunities for these carriers amid evolving regional sourcing trends.

• Global Shipping Realigns as Europe & Southeast Asia Offset U.S.-China Slowdown

As U.S.-China trade declines due to tariffs and tensions, global shipping is shifting. Europe and Southeast Asia are emerging as key trade partners for China, leading carriers to adjust routes and focus more on Asia-Europe and intra-Asia lanes. This reflects a broader move toward diversified, resilient global supply chains.