Global Logistics Update May 2025: Navigating Trade Volatility and Tariff Shifts

The global trade landscape in May 2025 continued to experience significant volatility, driven by ongoing tariff shifts, regulatory adjustments, and new international trade agreements. A notable development was the 90-day tariff pause between the U.S. and China, which, while easing immediate tensions and rates, introduced a period of uncertainty. This pause prompted a surge in eastbound ocean cargo, leading to increased vessel congestion and equipment shortages across Asia, particularly impacting trans-Pacific routes.

Major trade agreements were also signed, including a UK-India deal to boost bilateral trade and a China-ASEAN agreement focused on green and digital sectors. The UK and EU also initiated a post-Brexit reset. New customs requirements in Canada, with a May 20th deadline for Financial Securities, further impacted supply chain strategies.

In air freight, global cargo volumes saw a 4.4% year-over-year increase in March, signaling post-holiday demand recovery, though Latin America experienced capacity constraints. For ocean freight, European ports faced continued congestion, and carriers announced substantial rate hikes for June to counter declining rates from Asia to Northern Europe and the Mediterranean.

Looking ahead, the U.S.-China tariff pause is scheduled to expire on July 9th, 2025, for most countries, and August 12th, 2025, for China, with goods requiring customs clearance by these dates to avoid new duty rates, unless further Executive Orders are issued.

Source: Crane Worldwide Logistics (“Global Freight Forwarding May 2025,” May 22, 2025)