Tariffs, Tensions & How Shippers Are Adapting

IEEPA Refund Calculator Investor Relationship Financial Overview Company Overview Financial Overview Corporate Governance Overview Board of Directors Committees Internal Audit Regulations Shareholder’s Insights Shareholder’s Insights Shareholder’s Report Investor Contact Investor FAQ Contact MyDimerco English繁中简中 Home » Tariffs, Tensions & How Shippers Are AdaptingTariffs, Tensions & How Shippers Are Adapting by Dimerco | Apr 29, 2025 Container shipping strategies are pivoting toward Southeast Asia. Rising trade barriers and tariff costs are driving businesses to diversify sourcing across Vietnam, Thailand, Malaysia, and beyond. Supply chain agility is no longer optional; it’s fundamental to navigating this new landscape. These shifts and strategies were explored in Part One of the latest episode of Freight Buyers Club, featuring insights from industry experts Cindy Allen and Peter Sand.  Container Shipping Realigns Toward Southeast Asia Peter Sand, Chief Analyst at Xeneta, explained that container shipping volumes are moving out of China and into Southeast Asia, particularly Vietnam. Spot rates from Vietnam have now surpassed those from Shanghai, reflecting demand realignment and proactive upstream loading as shippers look to stay ahead of policy disruptions. Many companies are accelerating China +1 strategies, expanding sourcing across Southeast Asia to strengthen supply chain resilience. Navigating this landscape requires familiarity with Southeast Asia’s diverse infrastructure, carrier networks, and export timing. A well-calibrated approach can help companies absorb disruption while positioning them to seize regional opportunities. Vietnam Emerges as a Key Export Hub Amid Tariff Turmoil “Right now we have Vietnamese exports higher than Shanghai exports. That clearly tells a story that demand is not very strong out of China but is very strong out of other Southeast Asian nations, including Vietnam. And so it should be—this makes economic sense.” — Peter Sand, Chief Analyst, Xeneta As new tariffs take effect, shippers are acting fast to secure favorable rates and reliable capacity. Freight rates out of Vietnam initially held a $150/TEU discount versus Shanghai, but that gap has reversed. Vietnamese exports now outpace those from Shanghai, showing how demand is shifting toward Southeast Asia. Shippers are not just switching ports—they’re also: Renegotiating contracts Exploring alternate trade lanes Front-loading goods to move under current conditions Read our popular blog on Shipping from Vietnam to the U.S. to understand the hidden bottlenecks, capacity risks, and planning recommendations when considering Vietnam as a sourcing hub. Responding to Tariff Shifts Following recent trade announcements hinting at potential U.S.-China negotiations, Cindy Allen, CEO of Trade Force Multiplier, advises shippers to remain measured and avoid making rash decisions. She stresses careful compliance planning and methodical supply chain assessments with evolving policy conditions. U.S. Customs challenges are amplifying the difficulty, with manual duty calculations now necessary due to system constraints. SMEs are particularly vulnerable, facing intensified cost pressures and operational hurdles. Contracting Season: Delay, Rethink, or Lock In? Amid shifting sourcing patterns and tariff uncertainty, shippers are also adjusting their behavior around annual ocean freight contracting. Some are delaying signing new long-term contracts in hopes that market conditions stabilize. Others are asking for short-term rollovers or partial coverage through Q2 or Q3. Many are seeking more flexibility, blending fixed contracts with floating rates, or keeping backup carriers on standby. “We’re seeing this hesitation in contracting behavior. Everyone’s cautious. They’re looking at Vietnam, Southeast Asia, air freight—anything to buy time and flexibility.” — as discussed in the Freight Buyers’ Club video segment This hesitation clearly shows how uncertainty in trade policies and shipping costs is forcing importers to rethink their strategies for the upcoming peak season and beyond. Rather than locking in rates too early, many are leaving room to adjust as market conditions evolve. For shippers looking to manage volatility: consider mixing long-term and short-term capacity strategies, and keep a close eye on sourcing shifts—especially out of high-demand origins like Vietnam. Small Business, Big Impact: The Vanilla Bean Example Cindy shared a real-world example of how even niche product sellers are being squeezed by rising tariffs. A small U.S. business known for high-quality Madagascar vanilla bean pods and spice containers is now pausing operations. Why? A combination of tariffs: up to 160% on aluminum spice containers sourced from China and approximately 60% on Madagascar vanilla beans. With just 1–3 months of inventory remaining, the owner cannot afford to replenish stock under current conditions. She’s decided to pause and reassess sourcing in 90 days. This story reflects a broader reality—especially for small businesses. Even those with solid demand and loyal customers are being forced to pull back due to tariff-related cost spikes. The Real-World Impact Canceled sailings, abandoned inventories, disrupted sourcing strategies, and increased volatility are already reshaping freight patterns. Sectors highly dependent on China, including e-commerce and consumer goods, are among the hardest hit. Positioning for What’s Next Resilient supply chains will rely on disciplined scenario planning, continuous policy monitoring, and flexible sourcing strategies. Organizations that act early and align with experienced regional partners will be best positioned to navigate ongoing disruption and sustain growth. Catch the full conversation now on Freight Buyers Club for more insights from Cindy Allen and Peter Sand. Subscribe to the podcast for regular updates and expert analysis on global freight and supply chain trends. If you’re ready to start a conversation about strengthening your sourcing and logistics strategies, contact one of our specialists today. Looking to build greater supply chain resilience? Download our Supply Chain Agility Ebook to explore proven strategies for navigating today’s disruptions and future-proofing your operations. 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