Rate Related Update and Market Conditions
📌 Current U.S. Tariff Status (as of December 9, 2025)
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U.S. Reduces Tariffs on South Korea: Effective November 14, 2025, most Korean imports now carry a minimum 15% tariff, with autos and auto parts applying retroactively to November 1. Select Korean aircraft products are exempt from Section 232 duties under the same update.
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Mexico Customs Reforms: Beginning January 1, 2026, new IMMEX rules will require stricter production and documentation records, along with higher administrative penalties for non-compliance. These reforms follow earlier restrictions that have already shifted some fulfillment activity back to the U.S.
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U.K. Pharmaceutical Exemption: Announced December 1, the U.S. will exempt U.K. pharmaceuticals, ingredients, and medical technology from upcoming Section 232 tariffs under a new pricing agreement. The U.S. also committed to avoiding Section 301 actions related to U.K. drug pricing for the remainder of President Trump’s term.
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Section 301 Exclusions Extended: The USTR has extended all 178 existing China product exclusions through November 10, 2026, maintaining current duty relief as part of the recent U.S.–China tariff truce.
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Other Notes: The U.K. plans to end its £135 duty-free threshold by 2029, aligning with similar changes in the EU and U.S. Recent U.S. executive orders also expanded exemptions for Brazilian agricultural imports from the 40% IEEPA tariff, retroactive to November 13, 2025.
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Source: whitehouse.gov, politico.com, whitehouse.gov
Rate Related Update and Market Conditions
Ocean Trade Lane Snapshot
Ocean markets remain steady across major east–west trades as December begins. TPEB capacity holds above 80% with flat demand, keeping downward pressure on rates and prompting carriers to soften December GRIs and delay the PSS to January. FEWB conditions are firmer, supported by e-commerce exports and stable European import demand, but heavy congestion at North European hubs continues to delay vessels, extend transshipment dwell times, and increase rollovers, tightening equipment in some areas and sustaining higher spot levels through the holidays. TAWB performance is constrained by ongoing congestion and equipment shortages across Northern Europe, though weak demand is keeping North Europe and West Mediterranean rates at historic lows while East Mediterranean surcharges have been postponed to mid-January.
Air Freight Market Update
Asia’s airfreight market remains tight as strong seasonal demand continues to outpace capacity, especially out of China, Vietnam, and Southeast Asia. High-tech and ecommerce volumes are keeping rates elevated and space limited across major trans-Pacific and Europe-bound lanes. Congestion at several regional hubs and reduced schedule visibility are contributing to delays, and these conditions are expected to persist through mid-December. Early bookings and flexible routing remain essential.
Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com
Asia–Latin America Freight & Port Update
Port Operations & Infrastructure
Multiple Brazilian ports are experiencing high yard utilization and extended waiting times. Rio Grande reports 82% yard utilization with waiting times up to 65 hours and notes of yard congestion and berth-window delays, while Navegantes shows 76% utilization and a 29-hour wait. These conditions, combined with scheduled port omissions under the AS2 service, may contribute to operational delays for Asia-origin cargo moving through Brazil.
Sources: hapag-lloyd.com
Trans-Pacific Carriers Adjust Rate Strategies Amid Softening Import Demand
Carriers moving cargo from Asia to the U.S. have held spot rates above the $1,300 per FEU threshold by avoiding steep freight-all-kinds discounts, even as import volumes weaken. Operators have added more tonnage in recent months, but industry analysts note that slowing bookings and rising shipper uncertainty may challenge this pricing discipline. With capacity projected to grow further, carriers could face greater pressure to maintain stable rates over the next several weeks.
Asia’s Manufacturing Sector Shows Mixed Momentum as Demand Remains Subdued
Recent PMI readings across Asia indicate ongoing softness in manufacturing, with China, Japan, South Korea, and Taiwan reporting declines in factory activity during November. Analysts note weak orders and high inventories continue to weigh on output, despite progress in U.S. trade discussions. Some emerging markets, including Vietnam and Indonesia, recorded stronger performance. Overall, the region’s manufacturing landscape remains uneven as exporters adjust to shifting demand and evolving trade conditions.
