The tariffs introduced by President Donald Trump represent a seismic shift in global trade dynamics, both in geographical reach and economic weight, Peter Sand of Xeneta has said.
According to the market intelligence resource’s chief shipping analyst, last week’s unprecedented trade developments in the US are poised to redefine global commerce, with long-lasting and far-reaching effects.
He said that because of the turbulence facing global trade, the container industry must adapt through supply chain strategising and procurement resourcefulness.
Those who rise to the occasion could ultimately emerge more resilient, Sand said.
He recommended that one of the first steps would be gaining a clear understanding of market trends.
Since the start of 2025, average spot rates for shipments from the Far East have plummeted—by 43% and 50% for America’s east and west coasts.
The forward-loading frenzy seen throughout 2024 has now waned, and spot rates continue to decline.
Carriers had previously exploited tariff-induced uncertainty to temporarily elevate rates—such as 8% and 14% increases for the US east and west coasts on April 1, but these gains were unlikely to hold, Sand said.
He advises that shippers should rely on solid data, ignore short-term fluctuations, and focus on achieving the right rate level for their operational requirements.
Given the sheer scope of tariff schedules, their full impact on individual supply chains remained to be seen, Sand said.
He also mentioned the importance of maintaining flexibility, especially as many companies reassess trade routes, shift production hubs, or change service providers.
Locking into rigid contracts under current conditions could severely constrain future manoeuvrability.
He recommends negotiating terms that include provisions for renegotiation in response to significant market shifts, ensuring long-term contracts offer not just competitive rates but also strategic adaptability.
The new trading environment has effectively become a game of compliance, requiring companies to think creatively about how they structure their supply chains.
Since Brazil is spared from the heavy US tariffs other countries are facing, Sand said it opened up possibilities for shippers to route goods from China through Brazil before moving them on to the US east coast.
The critical requirement here is for the shipper to establish Brazil as the origin of goods, which may involve repackaging or repurposing.
The scale of the Trump administration’s tariffs compelled companies to explore such inventive workarounds, Sand said.
In this new landscape, relying solely on traditional routes—such as shipping directly from Shanghai to New York—is no longer sufficient.
A comprehensive, data-driven view of both primary and secondary trade lanes is essential for building versatile and responsive supply chains.
As global trade routes shift, logistics strategies must evolve accordingly. – SOURCE: Stat Media Group
