Global Freight Update: Tariffs, Trade Tensions & Transport Disruptions – April 2025

On April 2, 2025, President Trump announced a sweeping change to how goods are taxed when entering the U.S. Starting April 5, a universal 10% tariff will apply to all imported goods, regardless of their country of origin. Then, beginning April 9, reciprocal tariffs will take effect for countries that charge higher duties on U.S. exports. For those countries, the higher rate will replace the 10% tariff—whichever rate is greater will apply. These changes are part of a broader push to protect U.S. industries and encourage fairer trade practices.

For companies that rely on global suppliers, these tariffs could lead to higher costs, sourcing delays, or the need to reevaluate vendor relationships. Products from countries such as China, Vietnam, India, and others will now face significantly higher charges—some up to 49%. These rates are designed to reflect what those countries charge the U.S., but they also introduce real challenges in pricing, profit margins, and supply chain planning.

It’s important to note that some goods are exempt from these new tariffs. For instance, Section 232 products—such as certain steel and aluminum items already subject to national security-related trade measures—are not included in the 10% tariff. If you’re unsure whether your cargo qualifies for an exemption, our team can help you review the details and minimize your exposure.

We strongly encourage you to review your current procurement and shipping plans right away. These new tariffs could impact everything from landed costs to inventory strategy. As always, Southern Star Navigation is here to guide you through the changes and keep your supply chain moving. For a full breakdown of the latest updates, visit our Customer Advisory.

Trans-Pacific Shipping Rates Hit 15-Month Low – Shippers Hold Off on Contracts

Spot shipping rates from Asia to the U.S. West Coast have plunged to $1,600 per container, down 70% since January. With prices at their lowest in over a year, many importers are delaying long-term contracts, hoping for even cheaper rates later in 2025. Carriers, however, are pushing for higher contract prices—up to $3,500 per container for East Coast routes—to make up for last year’s losses.

The standoff between shippers and carriers comes as weak demand and overcapacity keep spot rates low. Some experts predict rates will settle around $2,000–$2,500 by May, but with tariffs and market uncertainty in play, many businesses are sticking to short-term deals for now. The next few weeks will be crucial as both sides try to lock in the best deals before peak season.

Ocean Carriers Blank Sailings in April Amid Push to Finalize Contracts

Ocean carriers are ramping up blank sailings in April as freight rates hit 15-month lows and new ships are set to enter the market. A total of 68 sailings globally are expected to be canceled this month, with about half affecting trans-Pacific routes to major U.S. ports. Mediterranean Shipping Co. (MSC) has already announced six cancellations for late-April voyages to the U.S. West Coast, East Coast, and Gulf Coast, while other carriers like Ocean Network Express (ONE) and Cosco Shipping are also pulling capacity.

The blank sailings are part of a broader strategy by carriers to stabilize rates as they negotiate annual service contracts with shippers, which are typically finalized by May 1. With trans-Pacific spot rates at $1,600 per FEU to the West Coast and $2,600 per FEU to the East Coast, carriers are trying to create an artificial supply-demand imbalance to justify rate increases. However, the influx of new ships in the coming months could complicate these efforts, with trans-Pacific capacity expected to rise 19% from March to April.

While shippers haven’t yet felt the impact of the blank sailings, the threat of tariffs and potential frontloading of imports could tighten container capacity later this spring. Forwarders warn that if blank sailings persist into June or July, shippers may struggle to secure space, especially with newbuilds adding to the fleet. For now, the market remains in a lull, but carriers may need to blank even more sailings to maintain rate levels as the industry braces for a potential capacity crunch.

New Trump Tariffs Drive Air Cargo Rates Higher as Shippers Rush to Beat Deadlines

Air cargo rates are spiking as importers rush to ship goods before new tariffs kick in. From Shanghai to North America, rates jumped to $5.40/kg—the second week above the $5 mark. Similar hikes are showing up on routes from Vietnam, India, and Europe. Industries like automotive are leading the charge. But it’s unclear if demand will hold once the tariffs take effect.

While the tariff-related rush has boosted rates and volumes, it’s unclear whether this momentum will last once the tariffs are in place. Shippers are frontloading shipments to avoid higher costs, but underlying demand remains uncertain. Meanwhile, the Asia-Europe trade lane has seen the strongest gains, with rates up 11% year over year, driven by robust e-commerce activity. As the tariff deadline passes, the air cargo market’s next moves will depend on whether demand can sustain these elevated rates or if a post-frontloading slowdown is on the horizon.

APM Acquires Panama Canal Railway to Expand Intermodal Services

Big news for global logistics! APM Terminals just acquired the Panama Canal Railway—a 47-mile track linking both sides of the canal. This move helps APM (part of Maersk) expand its intermodal services, giving shippers more options when canal delays strike. The acquisition, made in partnership with Canadian Pacific Kansas City and Lanco Group, positions APM to strengthen its transshipment and inland freight capabilities. The PCRC, which generated $77 million in revenue and $36 million in operating profit last year, plays a vital role in moving freight between the Port of Colon and the Port of Balboa.

The acquisition comes as the Panama Canal Authority explores long-term solutions to ensure the canal’s viability, including the potential construction of a new land bridge. The PCRC, originally designed to handle 500,000 container moves annually, aims to scale up to two million moves, offering a critical alternative for transshipment and cargo offloaded due to canal restrictions. APM’s parent company, Maersk, is leveraging this move to maintain high schedule reliability for its Gemini Cooperation alliance with Hapag-Lloyd, reinforcing APM’s position as a key player in global shipping networks.

Hutchison Delays Panama Ports Deal Amid Geopolitical Pressure

CK Hutchison has delayed the signing of a $22.8 billion deal to sell its Panama Ports Company (PPC) to a consortium led by BlackRock and MSC’s port subsidiary, Terminal Investment Limited (TiL). The agreement, which includes control over the key ports of Cristobal and Balboa on both ends of the Panama Canal, was originally scheduled for April 2 but is now on hold due to pressure from Chinese regulators. The sale hasn’t been canceled, but it’s facing new obstacles as the Chinese government takes a closer look at the company’s global operations. These ports are strategically important for international trade and canal traffic, so any change in ownership naturally draws global attention—especially when major players like BlackRock and MSC are involved.

The delay follows an announcement from China’s State Administration for Market Regulation, which has launched a review of the transaction to evaluate its impact on market fairness and national interest. In addition, Chinese officials have reportedly instructed state-owned companies to pause any new business agreements with CK Hutchison and companies tied to its founder, Li Ka-shing, until the review is complete. While current ventures between CK Hutchison and Chinese firms remain unaffected for now, the heightened scrutiny reflects Beijing’s sensitivity to foreign influence over critical infrastructure. The outcome of this deal could have wider implications—not just for trade through the Panama Canal, but for how governments respond to the growing influence of multinational port operators around the world.

Wan Hai Expands Regional Network with New India-Vietnam Service

Wan Hai Lines just rolled out a new intra-Asia service connecting Vietnam and India, boosting trade between two fast-growing markets. The new Tamil Nadu–Thailand Express will run a 28-day loop with four ships, connecting ports like Ho Chi Minh City, Chennai, Singapore, and more. The 28-day round-trip service, operated by four 2,200 TEU vessels, aims to provide direct and efficient cargo delivery for shippers in Vietnam, Thailand, and East India. The first voyage is set to depart Cat Lai on April 20, with arrival in Chennai scheduled for May 4.

The TTX service is expected to benefit East Indian manufacturers, particularly in Tamil Nadu, a hub for automotive and electronics production. With increasing investments in the region, the service will support the steady supply of raw materials and semi-finished goods, further strengthening India’s industrial ecosystem. Wan Hai’s move aligns with the growing bilateral trade between India and Vietnam, which reached $15 billion in the 2023-24 fiscal year. The service also complements Wan Hai’s existing network, which includes routes to China and the Middle East, offering shippers enhanced frequency and coverage.

Canadian Port Dispute Heads to Arbitration After Failed Negotiations

Port disruptions in Montreal continue, as labor talks now head to arbitration. Since September, repeated strikes have slowed cargo flow, costing businesses millions in delays. Shippers using Canada’s East Coast should brace for continued disruptions as both sides remain at odds.

Despite a 90-day mediation process that began in November and was later extended, the mediator concluded that no agreement was possible. As a result, the dispute will now be resolved through binding arbitration. Both parties recently met with the Canada Industrial Relations Board (CIRB) to outline the next steps. If they cannot agree on an arbitrator by April 7, one will be appointed by the labor minister or the CIRB. The arbitration decision will be final, bringing an end to the prolonged conflict that has impacted trade and supply chains.

De Minimis Exemption for China Shipments Ends in May

Starting May 2, 2025, the de minimis exemption for goods shipped from China and Hong Kong to the U.S. will no longer apply. This change, part of President Trump’s executive order, introduces a 30% duty on items valued under $800 or a flat fee of $25 per item. The fee will rise to $50 on June 1. This move aims to address trade imbalances and protect U.S. industries by reducing reliance on Chinese imports.

E-commerce companies and airlines are expected to feel the impact, as many rely on low-value shipments to meet consumer demand. The new tariffs will likely increase costs for businesses and consumers, prompting a shift in supply chain strategies. Companies may explore alternative sourcing options or adjust pricing to absorb the added expenses. This policy change underscores the administration’s focus on fair trade practices and domestic manufacturing growth.

Drive For Five: Landstar’s Simple Rule for Safer Highways

At Landstar, safety isn’t just a rule—it’s a mindset. Their “Drive For Five” approach helps drivers stay alert, avoid accidents, and protect everyone on the road.

• Front & Back: Keep safe following distances to prevent rear-end collisions.
• Sides: Signal early, check blind spots, and limit lane changes.
• Mindset: Imagine loved ones in the vehicles around you—drive with care.

This proactive approach aligns with Landstar’s commitment to safety excellence. Whether you’re hauling cross-border freight or local loads, Drive For Five keeps everyone moving safely forward.

Stay safe. Stay sharp.

As global trade dynamics continue to shift, staying informed and adaptable is more important than ever. Whether you’re navigating new tariffs, responding to supply chain slowdowns, or rethinking your sourcing strategy, our team at Southern Star Navigation is here to help you move forward with clarity and confidence. If you found this update helpful, be sure to follow us for ongoing insights— Bethany 🌎 Gabbett and feel free to reach out with any questions or shipping needs. We’re always just a click away: www.southernstarnavigation.com or call 833-782-7628 Ext. 1