Asia Pacific Freight Markets Reshape as Tariffs Shift Trade Flows

Air and sea freight in the Asia Pacific region is at the centre of global freight realignments, as eCommerce and feeder shipping operations are reshaped by recent policy changes in the US. 

Adjustments to tariff rules and the elimination of duty exemptions have pushed shippers to reconsider sourcing strategies, shifting some flows from China to other Asia Pacific markets while amplifying pressure on already-congested sea and air networks.

Air cargo: eCommerce realignment

The removal of de minimis exemptions on China–US eCommerce shipments has sharply reduced volumes from mainland China and Hong Kong to the US, while boosting flows from alternative Asia Pacific origins and into Europe.

Airlines across the region reported strong growth in July, as exporters diverted shipments to avoid tariff penalties and took advantage of front-loading opportunities during temporary pauses in tariff implementation.

This shift highlights the growing role of Asia Pacific beyond China in meeting US and European demand, with trade lanes from Southeast Asia and emerging eCommerce hubs gaining traction. While China remains dominant in cross-border online trade, its reduced share of US-bound volumes has accelerated diversification across the region.

Sea freight: Feeder bottlenecks

At the same time, feeder shortages in Southeast Asia are disrupting supply chains, delaying transshipments and creating congestion at major hubs including Singapore (operating near 90% yard capacity), Shanghai, Ningbo and Port Klang.

Shippers are being forced to secure space weeks in advance, with rolled cargo and high yard density compounding the disruption.

The surge in demand from Southeast Asia, partly driven by tariff-related cargo diversions, has stretched feeder capacity, with carriers prioritising direct lanes over transshipment-heavy routings. For US exporters, this has meant greater scrutiny over which cargoes are accepted, adding uncertainty to already fragile trade flows.

Implications for US and European businesses

For US and European importers, these developments underline the risks of over-reliance on single-source markets, as both regulatory shifts and operational pressures can disrupt established flows. For exporters, feeder constraints and selective carrier acceptance policies may limit market access and slow supply chains out of Asia.

Diversification of sourcing, earlier booking strategies, and closer collaboration with supply chain stakeholders is essential in navigating these disruptions. With eCommerce volumes continuing to grow and Asia Pacific playing a more pivotal role, freight strategies must evolve to maintain resilience and competitiveness.

Metro gives you the visibility, agility, and expertise to adapt to shifting trade flows and capacity constraints. EMAIL managing director, Andy Smith, today to strengthen your supply chain and secure your freight movements across Asia Pacific, the US and Europe.