Dimerco flags major disruptions in Asia freight market

Global shipping is facing one of its biggest shake-ups in years. According to the August 2025 Asia-Pacific Freight Market Report by Dimerco Express Group, new US tariffs, bad weather, and changes in demand are all creating major problems for freight forwarders, exporters, and logistics companies.

On 1 August, the US is starting new “reciprocal tariffs” for over 25 countries, including many in Asia. This means that goods entering the US from these countries now face new and sometimes very high import duties. As a result, many companies rushed to ship their goods in July before the new taxes started. This created a sudden rise in shipments, followed by a steep drop in early August, leading to confusion and empty spaces on some routes.

“These are not just small changes in freight movement. This is a deep shift in how global trade works,” said Alvin Fuh, Vice President, Ocean Freight, Dimerco Express Group. “Shippers and logistics companies must now change how they plan and operate.”

Higher demand and increased rates

In some places like India, Taiwan, and Southeast Asia, demand for flights to the US has increased a lot. Rates have gone up, and it is now difficult to find space on popular lanes. In Taiwan, air freight to India is also facing delays due to space shortages in cities like Mumbai and Chennai.

In contrast, some routes to Europe or within Asia are not very busy. For example, in China, the demand from South and East China to Asia remains soft. This shows that exporters are focusing more on the US market right now, while other regions see less activity.

Ocean freight: Rates dropping, but trouble ahead

The ocean shipping market is also feeling the impact. Many companies had sent large shipments in July to avoid the new tariffs. Now, in August, demand has dropped, and ocean freight rates on some routes are falling. But that does not mean things are getting easier.

To manage extra space, shipping lines are cancelling sailings, also known as “blank sailings” especially on Asia–US routes. This is leading to delays and uncertainty for exporters. Dimerco says that ocean capacity from Asia to the US will be cut by 6.2% in August to balance the market.

India and Southeast Asia: Exporters Face Mixed News

India’s air freight market is under pressure. Shipments to the US are increasing, but the ongoing monsoon season is causing problems. Heavy rain is affecting trucking, warehouse handling, and even flight schedules. Shippers are being advised to shrink-wrap cargo and use waterproof packaging to avoid damage.

In Southeast Asia, the situation is even more complicated. Countries like Vietnam, Thailand, Malaysia, and the Philippines are seeing high demand because of new tariffs. For example, Thailand now faces one of the highest US tariff rates in the region at 36%. Whereas, Malaysia is dealing with a 25% tariff and severe port congestion at Port Klang. Vietnam is struggling with tight air cargo space and ongoing port delays at Cat Lai. The Philippines is entering typhoon season, and shippers are racing to export before weather or tariff problems hit.

Because of these challenges, freight rates in these countries are rising, and space on ships and planes is limited. Exporters are being told to book cargo at least 2–3 weeks in advance to avoid disappointment.

Weather and geopolitics add more problems

Apart from tariffs, weather is another big concern. The monsoon season in South Asia and typhoon season in East Asia are already causing delays. Flights and port activities in places like South Korea, Vietnam, and the Philippines are being interrupted by heavy rain and storms. Logistics companies are struggling to keep goods moving safely and on time.

At the same time, Middle East tensions are affecting ocean routes. Conflict near the Red Sea has forced ships to avoid the usual path and go around Africa instead. This longer journey increases delivery time and adds to shipping costs between Asia, Europe, and the US.

Uncertainty over tariffs and trade talks

Many shippers are unsure about what will happen next. The US government is still making announcements about which countries will face which tariff rates. Some deals have already been signed, for example, Indonesia and the Philippines got a 19% tariff on exports to the US. While Japan’s goods face a 15% tariff, and Brazil’s a huge 50%. More than 150 other countries are expected to get tariffs between 15–20%.

Some trade talks are still ongoing. The US and China are discussing their tariff plans and may even extend their deadline beyond 12 August. This is giving a small hope to some exporters that higher duties might be avoided at least for now.

What should shippers do now?

Dimerco’s experts advise companies to:

Stay updated with tariff announcements, especially from the US. Plan shipments ahead of time, especially during monsoon and peak cargo season. Use waterproof packaging and shrink wrap to protect goods from weather damage. Be flexible with routes and consider alternative gateways. Book ocean and air cargo space as early as possible to avoid rising rates or delays.

“Companies cannot follow old patterns anymore,” said Kathy Liu, Vice President, Global Sales and Marketing at Dimerco. “You must understand how trade policies, weather, and local changes affect your supply chain. That is the only way to keep your goods moving safely and on time.”