DSV Global Market Update

Dear Customers,

Please find attached a link to DSV Global Market update June 2025 

LOCAL UPDATE – Please click to view our latest flash update (16.6.2025). 

GLOBAL UPDATE

Key Highlights

Geopolitical instability in the Middle East, particularly the escalation between Israel and Iran, has heightened risks in the Strait of Hormuz, with potential implications for oil prices and regional port operations.

US-China trade tensions with leave higher tariffs: It seems we have a new agreement after August 13th with a general tariff of 55% between China and US. And 10% between US and China, the framework agreement is still pending of final approval

Ocean Freight

Rates have slowed down last week on China to US after carriers have added capacity, the situation in other trades is still difficult but it seems that there is additional capacity and the recent rate increases will not further escalate.  

Air Freight

after holiday season and some ease of e-commerce demand have stabilized rates. Post-tariff pause, airfreight spot rates are expected to rise. The cessation of the "de minimis" exemption for low-value shipments from China to the U.S. has led to capacity reductions, with limited impact on supply and demand so far. We will closely monitor developments in the coming weeks. 

 Post-tariff pause, airfreight spot rates are expected to rise. The cessation of the "de minimis" exemption for low-value shipments from China to the U.S. has led to capacity reductions, with limited impact on supply and demand so far. We will closely monitor developments in the coming weeks. 

General Update:

• The war between Israel and Iran influences the Middle East as it braces for retaliation.
• Supply Chains become new battleground in the Global Trade War; China’s move to put a six-month limit on rare-earth export licenses for American manufacturers signals that they could use this weapon against the U.S. if trade tensions erupt again
• USA:  50% tariffs on foreign steel and aluminium come into effect
• US-China trade deal: Higher tariffs here to stay despite trade war de-Escalation. Final rates to be discussed at 55% China to US and 10% US to China.
• Eurozone Inflation Falls Below Target at 1,9% .

Ocean freight highlights:

• Transpacific rebound: Following the temporary tariff suspension, U.S.-bound container volumes have surged. Carriers have reinstated previously suspended services, particularly on the Asia–US West Coast corridor. Vietnam’s exports to the U.S. reached a post-pandemic record in April
• Rate volatility: Transpacific (China to US West coast) rates briefly peaked in early June but have since dropped below $5,000/FEU due to overcapacity and weaker-than-expected bookings.
• Container availability: China has produced over 2.3 million new containers YTD, alleviating concerns of equipment shortages and stabilizing supply.
• Port congestion: While congestion remains elevated in North European ports, global port delays are largely manageable. Fos-sur-Mer (France) and Itajai (Brazil) are notable exceptions with extended wait times.
• Service reliability at 58.7%: In March/April 2025, Gemini Cooperation recorded 90.7% schedule reliability across ALL arrivals, and 87.0% across TRADE arrivals, followed by MSC at 69.8% for ALL arrivals.

Airfreight highlights:

• Capacity growth: Global air cargo capacity rose by 5% between April and May, led by Asia–Europe lanes. However, Transpacific capacity remains only partially recovered.
• Vietnam–US air trade has increased by 81%, positioning Vietnam as a key logistics hub amid shifting trade flows.
• Spot rates have softened following the tariff truce, though volatility remains due to ongoing regulatory changes and geopolitical uncertainty.