A 90-day tariff truce between the U.S. and China has hit pause on escalating duties but not on market volatility. As freight buyers rush to capitalize on the window, the big question becomes: how do you move with confidence when the rules keep shifting?
In this Freight Buyers’ Club explainer, Mike King breaks down what’s driving today’s container market turbulence and shares guidance for mitigating cost, capacity, and sourcing risk across your supply chain.
For insights on how importers and port operators initially responded to the truce, check out our earlier article: “Shippers are Bracing for Congestion, Costs & Contract Complexity.”
1. Know the Real Numbers
The truce headlines promote tariff reductions, but deeper analysis shows a more complicated picture. Shippers are still facing effective tariffs as high as 90% depending on origin, product classification, and material. Freight rates are also spiking. For example, the Shanghai to New York lane saw a 19% increase in just one week.
Planning Insight: Don’t assume relief means savings. Factor in stacking tariffs, surcharges, and carrier strategy when planning spend.
2. Watch the Market’s Whiplash
Blank sailings reached historic levels in early May, and now a freight rebound is underway. With pent-up demand hitting the water and congestion looming, agility is key.
Action to Consider: Secure space early, but leave room for routing flexibility. Volume spikes will test carrier reliability and terminal fluidity.
3. Reassess Your Tariff Exposure
John McCauley, BCO consultant and former Cargill exec, advises shippers to evaluate where and how tariffs hit their bottom line. If you import finished goods, you’ll feel the full cost. If it’s just a component, consider sourcing alternatives or negotiating with suppliers.
Risk Mitigation Move: Use this window to rebalance contracts and revisit who absorbs cost: the supplier, the customer, or your business.
4. Look Beyond the Headlines
Unresolved issues, including port surcharges and potential future restrictions on steel, autos, or pharmaceuticals, remain on the table. And even if tariffs ease, overcapacity and rerouted vessels via Africa continue distorting global networks.
Forward Planning Note: Track both geopolitical developments and carrier behavior. Today’s truce could be tomorrow’s disruption.
5. Use FX to Your Advantage
Currency strength matters. If the U.S. dollar holds strong, you may have more leverage when pricing overseas purchases. Local currency deals could also buffer rate swings.
Cost Efficiency Tactic: Consider switching to local currency invoicing where feasible, especially if you’re sourcing from non-China Asia.
For a summary of the key themes covered in this post, watch the full Freight Buyers’ Club video explainer on YouTube.
Positioning Your Supply Chain for What’s Next
No one knows what comes after this 90-day reprieve. But smart shippers aren’t waiting. They are scenario-planning now, evaluating landed cost exposures, rethinking sourcing footprints, and locking in rates where possible.
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Strengthen Your Supply Chain with Smarter Agility
As the tariff landscape continues to shift, it’s more important than ever to align your sourcing strategy with real-time logistics realities. Dimerco provides the freight capacity and local market expertise in Asia to help you stay ahead.
Learn how leading shippers are embedding flexibility into their operations by exploring our Supply Chain Agility Ebook. If you’re ready to reassess sourcing strategies or need tailored guidance, connect with a Dimerco specialist to start planning with more confidence.
