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Dimerco’s January Freight Report Highlights Pre-Tariff Rush, Capacity Crunch, and Chinese New Year Challenges

Dimerco’s January Freight Report Highlights Pre-Tariff Rush, Capacity Crunch, and Chinese New Year Challenges

Posted on December 28, 2024 By NewsEditor

January’s freight market sees pre-tariff rushes, Chinese New Year pressures, and tight capacity driving rate hikes across Asia-Pacific trade lanes.

With Chinese New Year arriving earlier this year, coupled with a significant influx of cargo rushing to avoid high tariffs, carriers are pulling back special rates and returning to higher spot rates.”

— Alvin Fuh, Vice President of Ocean Freight at Dimerco

TAIPEI, TAIWAN, December 19, 2024 /EINPresswire.com/ — Dimerco Express Group’s January 2025 Asia-Pacific Freight Market Report sheds light on mounting pressures on global freight markets as businesses navigate pre-tariff rushes, capacity constraints, and upcoming Chinese New Year disruptions.

Shippers are expediting shipments ahead of the much-anticipated U.S. tariff changes and preparing for factory closures during the Lunar New Year, creating surges in demand for both air and ocean freight.

Key Insights from the January Report:

————————————————-

● Pre-Tariff Rush Intensifies Freight Demand:

With the inauguration of the new U.S. administration on January 20, 2025, and potential tariff increases on imports from key trade partners, businesses are expediting shipments to the United States. Kathy Liu, Vice President of Global Sales and Marketing at Dimerco, commented, “Starting mid-December, we’ve seen a significant uptick in cargo volumes, particularly for consumer electronics. Shippers are rushing to move stock via air freight from China to the U.S., hoping to beat potential tariff increases. This surge has pushed capacity to critical levels.”

● Chinese New Year Compounds Supply Chain Strains:

With Chinese New Year falling on January 29, 2025, and public holidays from January 28 to February 4, businesses are front-loading shipments ahead of factory shutdowns, further straining capacity. Alvin Fuh, Vice President of Ocean Freight at Dimerco, noted, “With Chinese New Year arriving earlier this year, coupled with a significant influx of cargo rushing to avoid high tariffs, we’re seeing carriers pulling back special rates and returning to higher spot rates. The key question now is whether these elevated rates will remain stable through the holiday period.”

● Capacity Constraints and Rate Increases Across Major Trade Lanes:

Capacity constraints and rate hikes are hitting U.S. and European routes hard. Airlines are introducing a 10% increase in contract rates for 2025, impacting both long-haul and intra-Asia shipments.

Blank sailings and potential port strikes are affecting capacity. Carriers are implementing General Rate Increases (GRIs) in response to heightened demand and to maintain high spot rates.

● Potential U.S. East Coast Port Strike Looms:

The International Longshoremen’s Association (ILA) has warned of a potential strike starting January 15, 2025, if a contract isn’t reached. This could lead to widespread port closures and significant supply chain disruptions. To mitigate risks, Dimerco advises businesses to secure additional inventory, consider alternative routes, and plan shipments well in advance.

Regional Market Highlights:

———————————–

● Taiwan: High demand for AI chips and servers is driving up airfreight rates to the U.S. and Europe. Ocean freight rates are also rising due to increased cargo volumes ahead of tariff changes.

● China: Exporters are experiencing tight capacity and rising rates, particularly in North and South China. Shippers are advised to book in advance to avoid delays.

● South Korea: Space to the U.S. is tight due to increased exports and CES-related cargo. Bookings require at least two weeks’ notice.

Forward-Looking Recommendations:

————————————————

Dimerco advises shippers to:

● Plan Shipments Early: Advance booking is crucial to secure space and avoid premium rates.

● Monitor Market Developments: Stay informed about tariff changes, port strike negotiations, and carrier announcements.

● Diversify Logistics Strategies: Consider alternative routes or modes of transportation to mitigate potential disruptions.

For further information on Dimerco’s January 2025 Asia-Pacific Freight Market Report, download the full report here.

If you want to arrange an interview with one of Dimerco’s logistics experts, please contact Gitte.

About Dimerco

Dimerco Express Group is a global provider of integrated logistics, transportation, and supply chain solutions. With a focus on delivering innovative and efficient services, Dimerco combines extensive industry expertise with advanced technology to meet the evolving needs of its customers. The company operates in key markets around the world, helping clients navigate the complexities of international trade while adhering to the highest standards of sustainability and corporate responsibility.

For more information, visit Dimerco’s website.

Gitte Willemsens
CHARLIE PESTI
+32 489 36 22 31
email us here

Transforming Automotive Supply Chains: Dimerco – Your Most Trusted Partner

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Dimerco’s January Freight Report Highlights Pre-Tariff Rush, Capacity Crunch, and Chinese New Year Challenges

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December 19, 2024, 15:18 GMT


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Originally published at https://www.einpresswire.com/article/770004010/dimerco-s-january-freight-report-highlights-pre-tariff-rush-capacity-crunch-and-chinese-new-year-challenges

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