In November, North American Supply Chain leaders shifted their focus to tariff mitigation and began putting in place or executing plans to prepare for the potential impact of new or increased tariffs.
Ocean shipping prices continued to normalize across Asia – US, despite some importers frontloading shipments to mitigate the risks of potential labor strikes and increased tariffs under the incoming administration.
Ocean rates rose slightly on Asia --- EMEA lanes driven by a recent equipment shortage. Air rates also saw a modest rise, though they remained well below extreme peak-season levels.
Meanwhile, domestic USA freight and warehouse demand has seen a small uptick, fueled by inventory pull-forward and repositioning efforts.
Click here to access this month's full update.
Highlights from this month's update:
- Ocean rates continue to normalize on Aisa-US lanes but saw a small uptick on Asia-EMEA lanes
- USA Over-the-road carriers are facing pricing pressure but may be near the supply and demand equilibrium, with potential future rate increases
- Air demand remains elevated with small gains in rates
- Parcel carriers have recently announced rate increases for 2025, illustrating a stronger focus on profitability
- Warehousing rates rose slightly, driven by importers building up inventory for the holiday season
- The incoming U.S. Administration may implement new trade regulations that necessitate a more flexible supply chain strategy
- Concern remains on possible resumption of the ILA port strike in January 2025, just ahead of the Chinese New Year
Further reading:
Read more on how businesses across the retail sector need to take a holistic and consumer-focused approach when implementing their tariff mitigation strategy: The ripple effect of tariffs: How global supply chains are being reshaped.
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