Weekly Insight from Seabreeze Logistics: Stay Ahead in Freight

• Tariffs driving regional supply chain shift opens avenues for automotive

Rising U.S. tariffs on vehicles and parts are accelerating supply chain realignment in the automotive sector. Companies are relocating manufacturing to Southeast Asia (notably Vietnam and Malaysia), Mexico, and Eastern Europe to bypass high duties and diversify sourcing. Logistics providers are adapting to this regional redirection —responding to rerouted freight volumes and new trade routes as companies embrace nearshoring and “China‑plus‑one” strategies.

• Transpac GRIs fail to prop up under-pressure container spot freight rates

Container spot rates on the transpacific trade lane remain under heavy pressure despite carriers announcing General Rate Increases (GRIs). The attempted rate hikes have largely failed to gain traction due to soft demand and excess capacity, leaving freight rates at unsustainable levels. Carriers may face increased financial strain if market conditions do not improve.

• As China-India trade expands, carriers add capacity, impacting rates

Rising trade between China and India has encouraged carriers to deploy more capacity— especially feeder services and container slots—on Asia–India routes. However, increased supply is now putting downward pressure on spot freight rates, limiting gains despite demand growth. This shift is reshaping regional trade flows and signalling a potential softening in rate outlook if capacity continues to outpace volume expansion.

• Tradelanes: Over capacity on Asia-S America impacting alliances and rates

Asia–South America shipping routes are facing severe overcapacity following aggressive deployment of large vessels like MSC’s Ipanema and upgrades by Evergreen and others. This has led to up to 33% excess tonnage, causing spot freight rates (e.g. Shanghai→Santos) to decline by 26%. The imbalance is also disrupting alliance planning, forcing carriers to adjust schedules and rethink long‑term service strategies.