Trump’s plans for day-one 25% tariffs on Mexico and China is adding even more uncertainty for N. American trade and logistics. 🔈Here are the key insights from this week’s Freightos Weekly Update: President-elect Trump increased shipper concerns over tariff hikes this week by announcing he will impose a 25% tariff on all imports from Mexico and Canada his first day in office. The trade acts he used to introduce tariffs in his first administration require processes that prevent immediate tariff introductions, making January 20th changes unlikely. But his announcement will likely lead to an increase in cross-border road and rail rates as importers rush to beat tariff hikes. If these tariffs are introduced they will result in higher costs for importers that could be passed on to consumers, especially for goods where large shares of US imports come from Mexico and Canada like vehicles and auto parts. Transpacific ocean rates – that typically fall in November – have remained level and elevated above the $5,000/FEU mark since mid-October, with rates to the East Coast climbing past the $6k/FEU mark so far this week. This rate strength likely points to some frontloading by importers ahead of a possible ILA strike in January as well as likely tariff increases next year. Asia - Europe ocean rates increased 30% on early November GRIs but have remained at about that level since. Despite some carrier reports of a volume rebound, an increase in blank sailings, and an early Lunar New Year, many are skeptical that December GRIs aiming to push rates past the $6k/FEU mark will succeed. Some carriers announced that new EU emissions regulations will lead to Asia - Europe rate increases next year. Ex-China air cargo rates remain level despite expectations that this year’s peak season would push rates – already elevated by e-commerce demand – up to possibly extreme highs. #freightrate #airfreight #oceanfreight
