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Trade tensions, tariffs shake North…

Trade tensions, tariffs shake North American freight flows

Geopolitical tensions and mounting U.S. tariffs are disrupting North American freight networks, leading to significant slowdowns at container ports and air cargo hubs, according to the most recent UPS freight and logistics market update.

Scheduled arrivals at the Port of Los Angeles are down roughly 30 per cent year-over-year for the first week of May. Air freight volumes have declined by a similar margin, with many importers delaying new Chinese shipments ahead of the May 2 expiry of the de minimis exemption.

China’s Ministry of Commerce signaled a willingness to resume cooperation with U.S. companies following recent friction with Boeing, which saw Chinese airlines halt deliveries of new aircraft, leaving about 50 jets grounded.

In contrast to strained U.S.–China relations, WestJet Cargo is expanding international ties. The carrier will double its Calgary–Seoul service to six weekly flights beginning May 19, offering 130 tonnes of cargo capacity per week aboard Boeing 787 Dreamliners. The expansion coincides with the route’s first anniversary and underscores Calgary’s growing role in global trade.

Ocean freight has also taken a hit, with Hapag-Lloyd shifting to smaller vessels and carriers like Zim and MSC suspending services as trans-Pacific bookings plunge—down 54 per cent in some cases. Analysts expect U.S. West Coast ports to see double-digit volume declines this month, and Drewry projects a one per cent drop in global container shipping volume for 2025.

Meanwhile, Chinese shipping giant Cosco is warning that new U.S. port fees targeting Chinese carriers could inflate costs by up to $10 million per voyage. The policy, set to take effect in October, has raised concerns about global trade distortion and potential alliance restructuring.

In rail developments, China and Germany have jointly signed the UN Convention on the Contract for the International Carriage of Goods by Rail, streamlining legal frameworks across Europe and Asia to support more efficient cross-border logistics.

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