Part 6/8:
In response to the trade tensions, alternative supply chain hubs like Vietnam and Southeast Asia are emerging as viable options for US importers. Given the deteriorating conditions for freight from China, US companies are increasingly looking toward these regions to mitigate tariff risks, causing a spike in freight rates that can rise by as much as 43%.
A new tariff exemption from the US only temporarily alleviates some pressures, as the majority of goods pertinent to trade remain under high tariff conditions. Although there may be limited exceptions, experts agree that the shipping demand from China to the US is unlikely to return to pre-tariff levels imminently.