By: Fibre2Fashion

Significant global supply chain disruptions are expected as new US country-specific reciprocal tariffs alter global trade flows, according to Dimerco Express Group’s latest Asia Pacific Freight Report—August 2025. A surge in shipments from Asian exporters in July was followed by sharp volume declines once tariffs took effect, destabilising both air and ocean freight markets.

Ocean carriers are cutting Asia–US capacity by 6.2 per cent this month and scheduling blank sailings to counter oversupply, while air cargo trends vary by region, with some trade lanes facing capacity shortages and others excess space.

Southeast Asia has seen significant rate hikes and congestion—Malaysia’s Port Klang is reporting 70-hour vessel waits, while Vietnam and Thailand face space shortages ahead of tariff deadlines.

Geopolitical tensions and weather disruptions are compounding challenges. Houthi attacks in the Red Sea are forcing vessels to reroute around Africa, extending transit times and raising costs, while typhoon season in South China, Hong Kong, Taiwan, and the Philippines is causing further delays. Severe congestion at Northern Europe’s major ports is expected to persist into Q4.

In regional highlights, Australia is experiencing rising ocean freight rates from strong demand, India is advising shrink wrapping during the monsoon season, and Los Angeles–Asia air capacity is dominated by perishables, with some shipments diverted to Seattle.

“With the updated US tariffs taking effect on August 1, shippers are unsure how to plan their shipping schedules. This is especially true for key manufacturing and transit hubs such as Singapore, India, Taiwan, and China, where final tariff announcements are still pending,” said Kathy Liu, vice-president (VP) of global sales and marketing at Dimerco Express Group. “At the same time, August is peak typhoon season in South China, Hong Kong, Taiwan, and the Philippines, which may cause delays and flight rescheduling in these areas.”

“In the US, unclear tariff policies are causing unpredictable shipping and sourcing patterns. Although a temporary tariff pause has helped in the short term, higher tariffs are expected in August. This is leading to rushed shipments now but may result in reduced trade and higher costs later. With conflict risks, tariff uncertainty, and vessel supply imbalances, the ocean freight market is likely to stay unstable. Shippers should stay flexible and prepare for continued disruptions,” said Alvin Fuh vice president—Ocean Freight Dimerco Express Group.

The report covered 15 regional markets, providing forecasts, pricing outlooks, and risk management strategies to help businesses navigate volatile conditions through the remainder of 2025.