bongdaso con origin countries for Transpacific routes are evolving as shippers adjust production strategies to mitigate bongdaso con impact of tariffs, particularly those involving China.
As airfreight volumes continue to decline, carriers are reallocating capacity to match these shifts, industry experts revealed to Supply Chain Dive.
Following the announcement of reciprocal tariffs by the Trump administration in April, bongdaso con volumes between China and the U.S. have dropped by as much as60%,according toLaurent Deneubourg,VP of Global Airfreight atSeko Logistics.bongdaso con impact has been most pronounced ine-commerce shipments,which typically account for60% of China-U.S. airfreightand20% of global air bongdaso con.In May, e-commerce bookings fell by50%.
Beyond e-commerce, tariffs have significantly affectedautomotive volumes, fast fashion, consumer electronics,andtoys—all categories heavily reliant on airfreight, industry experts noted.
End of De Minimis Exemptions Exacerbates Capacity Challenges
bongdaso conMay 2 removal of de minimis exemptionsfor imports from China and Hong Kong further dampened volumes, leaving excess bongdaso con in its wake, according toJoe Kronenberger,SVP of Airfreight Product for bongdaso con Americas atGeodis.
De minimis items alone previously accounted for50% of airfreight volumes.With their removal, many shippers have canceledblock space agreementsandcharters,Deneubourg added. The air bongdaso con sector now faces an estimated billion revenue lossover bongdaso con next three years amid persistent trade uncertainties.
To adapt, carriers are redeploying capacity to alternative routes, such as those connectingSoutheast Asia and bongdaso con U.S.,Kronenberger noted.
“While routes aren’t changing entirely, capacity adjustments are being made as demand fluctuates,” he explained. Kronenberger also mentioned that a90-day pause on tariffshas provided some relief, stabilizing previously declining rates and filling some of bongdaso con surplus airfreight capacity out of China.
For bongdaso con week ofMay 27,airfreight rates from China to North America fell by7%week-over-week to.14 per kilogram,marking their lowest level since March,Freightosreported.
Production Shifts Away from China
While Transpacific routes remain active, bongdaso con origin countries for flights are shifting as businesses increasingly explore moving production out of China to mitigate exposure to U.S. tariff policies.
However, realigning procurement networks is a complex and time-consuming process.
“Shifting production and redefining company ownership to establish a new country of origin requires significant effort,” Kronenberger explained. “Nevertheless, clients are willing to undertake these changes to build more resilient supply chains amidst ongoing regulatory shifts.”
This trend is especially apparent inconsumer technology,where some Geodis clients have already begun relocating production toSoutheast Asia or India.In certain cases, companies have indicated thatup to 50%of their shipments currently originating in China will soon be redirected to other countries.
Navigating Uncertainty in Trade Regulations
bongdaso con rapidly changing trade landscape has made forecasting a challenge for logistics providers and shippers alike. Many companies are engaging in“tariff shopping”to find alternative strategies for mitigating tariff impacts.
For some, this involves relocating production away from China, while others are turning tobonded warehousesto hold bongdaso con upon arrival, Kronenberger said.
“Shippers are grappling with bongdaso con complexities of various tariff provisions and their interplay,” notedBrian Bourke,Global Chief Commercial Officer atSeko Logistics.bongdaso con resulting uncertainty has led toscenario planning changesand, in some cases, a freeze on key business decisions.
“Many shippers are adopting a ‘wait and see’ approach, continuing to cancel orders from China,” Bourke added. “However, bongdaso con real question remains: what happens when bongdaso con safety stock they’ve been relying on runs out?”
Source: https://www.supplychaindive.com/news/air-bongdaso con-tariffs-de-minimis-freighter-capacity/749577/
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