Global ocean freight is in a moment of suspension. After the 90-day tariff truce between the U.S. and China, the industry has been watching for the next move—will shipping demand surge, or continue to stall?
According to recent insights from FreightWaves, container volumes on the China-U.S. trade lane dropped sharply after tariff increases in April. But now, with tariffs eased and peak season approaching, a rebound appears likely. While carriers wait, they’re quietly reducing capacity—by as much as 22%—to brace for rate volatility.
At IOG, we see what’s coming not as uncertainty, but as a critical test of visibility, adaptability, and preparedness. The systems you have in place now will determine whether you respond—or react—when the market shifts again.
A Quick Recap of What’s Happening
- Tariff Reductions: Both the U.S. and China have reduced tariffs to 10% for many key imports—effective for 90 days.
- Volume Drop: Post-tariff, ocean freight volumes fell more than 35% between China and the U.S.
- Capacity Cuts: Carriers blanked sailings and deployed smaller vessels to protect freight rates.
- Rate Outlook: With demand likely to return quickly, space will tighten—possibly sending spot rates surging.
The Real Risk: Lagging Response in a Fast-Moving Market
What the current situation reveals is a fragile equilibrium. Businesses that wait too long to move inventory or adjust shipping plans risk missing critical windows—or paying a premium to catch up.
It’s not about predicting the future. It’s about preparing for multiple versions of it.
What IOG Helps You See Before Others Do
IOG’s monitoring and tracking technology offers real-time and predictive insight across the logistics chain, so you’re not operating on assumptions:
- Live Shipment Status: Know where your cargo is—and what condition it’s in—with sensor-verified tracking
- Volume Trend Alerts: Spot early signs of demand shifts using integrated supply and transit data
- Inventory Risk Signals: Detect misalignments between incoming stock and warehouse capacity
- Exception-Based Reporting: Focus attention where disruptions are most likely to occur
Whether demand rebounds tomorrow or next month, you’ll have the data to pivot confidently—before your competitors do.
Rates May Pause—But Strategy Can’t
The current dip in demand is not an all-clear. It’s a warning shot. In an industry shaped by geopolitics, carrier maneuvering, and weather disruption, your supply chain’s value lies in how fast it adapts—not how long it holds.
With IOG, your operations remain informed, agile, and resilient—no matter how the shipping landscape shifts.
See the Signals Before the Rates Spike
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