Archive for category: Reports

Given the current economic and political context, what can we expect for transportation and logistics capacity through the end of 2025? In short, most freight modes are entering H2 with abundant capacity, but there are potential pinch points on the horizon. Here’s a mode-by-mode outlook:

• Ocean Shipping: Ocean carriers are in a significantly better position capacity-wise than in the last two peak seasons. Global container fleet size has grown – new mega-vessels ordered during the boom are being delivered, with container ship capacity projected to rise ~46% by 2026 (far outpacing demand growth) (transportationtaxconsulting.com). This suggests that unless demand unexpectedly soars, overcapacity will be an ongoing theme in late 2025. Carriers have already been blanking (canceling) many sailings to prop up rates. We anticipate they will continue this practice into Q3–Q4, especially after the summer rush subsides. Indeed, Drewry’s analysts forecast a weakening supply-demand balance in 2H 2025, putting renewed downward pressure on spot freight rates (drewry.co.uk). Shippers can likely expect relatively favorable ocean pricing for the rest of the year compared to pre-pandemic norms, though not as dirt-cheap as the trough of late 2023. One caveat: if U.S.–China tariffs snap back in August, trans-Pacific volumes could dip sharply in Q4, leading carriers to possibly consolidate services or idle ships, which could cause localized capacity tightness (e.g. fewer weekly sailings to certain smaller ports). Additionally, the West Coast port labor situation – stable since last year’s ILWU contract – should remain calm; we don’t foresee labor disruptions on the U.S. West Coast in this period. In Europe, however, labor strife has been an issue (strikes in Germany, France, etc. in spring 2025). That has led to port congestion in Northern Europe (waiting times 5–6 days at some ports) . If those issues persist or flare up again, carriers might reroute some Europe-bound services, which could affect schedule reliability into Q3. Shippers should build cushion into ocean transit plans and stay flexible on port routings (consider alternate ports that are less congested). By late Q4 (post-holiday), we expect a lull in volumes and plenty of vessel space – a good time for opportunistic shippers to negotiate 2026 contracts at competitive rates.
• Air Freight: The outlook for air cargo capacity is cautiously optimistic. International passenger flights (which carry a huge portion of airfreight in their bellies) continue to ramp up. By Q4 2025, global air travel is forecasted to be near pre-2020 levels, which translates to restored cargo capacity on many routes. This is already evident on Europe-North America and intra-Asia lanes, where capacity has largely normalized and rates have remained stable. However, demand swings could temporarily tighten certain routes. The trans-Pacific air market, as noted, is going through a summer cargo boom due to tariff front-loading (chrobinson.com). That demand is expected to taper by early Q3 once the duty deadline passes. After that, if U.S.–China trade slows in Q4, we could see a surplus of air capacity and potentially very soft air rates for late-year (barring the usual pre-Christmas tech product rush, which might be muted if inventories were pre-stocked). One trend to watch: modal shift back to ocean. During the pandemic, high ocean rates and poor reliability drove shippers to air; now with ocean reliable and cheap again, some of that discretionary air freight (like e-commerce goods that aren’t truly urgent) may shift back to sea. This could keep air demand in check. On the flip side, extreme weather events can suddenly boost air demand – e.g. if fall hurricanes disrupt ocean ports or if production delays require last-minute air lifts. Also, certain industries (semiconductors, pharmaceuticals) have robust pipelines and will use air regardless of cost. Net-net, expect ample air cargo capacity in Q3–Q4 and continued normalization of rates. Carriers will be hungry to fill planes, especially freighters. Shippers should still secure space for peak weeks (like early December for final holiday stock) but overall, air freight should be a reliable relief valve if you need to expedite late-year shipments. Keep an eye on fuel surcharges though; if oil prices spike with geopolitical events, air freight costs will rise accordingly even if base rates don’t.
• Trucking (North America): The U.S. trucking industry enters late 2025 in a state of overcapacity, and it will likely remain a “shippers’ market” well into Q4. The first half saw a wave of carrier bankruptcies and exits, yet capacity still exceeded demand. Tender rejection rates (a measure of carrier tightness) only just crept above 10% in certain regions by June, after being near record lows for over a year (freightwaves.com). Contract truckload rates have been trending down, and spot rates are at or below carriers’ operating costs in many lanes, forcing weaker operators out. The process of rebalancing is gradual – current estimates suggest that not until early 2026 will the truckload sector burn off the excess capacity and return to an equilibrium in pricing (chrobinson.com). For Q3–Q4, this means shippers can count on plentiful trucking options and competitive rates for most lanes. This is a boon for domestic distribution and last-mile delivery budgets. However, a few points of caution:
  • Seasonal demand in Q4 (the holidays) will still cause localized tightness. Carriers often see a surge in volume from retail, parcel, and perishables in Oct-Nov. Even in a soft market, expect spot rates to rise seasonally in those months especially in distribution hubs and final-mile capacity for e-commerce.
  • Fuel prices are a wild card. With diesel prices having fallen to around $3.50/gal in Q2, trucking costs benefited. But any sustained oil price increase (e.g. from the Middle East situation) in Q3 or Q4 will directly feed into fuel surcharges. So while base linehaul rates might stay low, the total cost per mile could jump on fuel volatility. Shippers should consider fuel hedging or adjusting budgets if crude remains above, say, $75/barrel.
  • Infrastructure or regulatory changes: By late 2025, some new regulations (emissions rules in California, for instance) will tighten operating conditions in certain states. California’s zero-emission truck mandates and AB5 labor law have the potential to reduce capacity or raise costs in that region. Also, hours-of-service flexibility granted during COVID is gone, meaning carriers have less wiggle room to absorb delays. These factors are not deal-breakers but could slightly erode some of the excess capacity by making operations tougher for small carriers.

Overall, though, trucking in H2 2025 should remain a bright spot for shippers – reliable and affordable. Use this period to secure strong contract rates into 2026. Also, with the railroads improving service, consider intermodal for long-haul moves; truckload competition has already pushed rail providers to be more price-aggressive. If the economy were to unexpectedly boom late-year (not likely, but if), there is still a large cushion of idle trucks and drivers to handle it. One note: the driver shortage narrative is less acute right now due to the soft market, but longer-term demographics still suggest challenges ahead. Wise shippers will continue to treat core carriers well and be strategic about commitments, because the pendulum will swing back after 2025.

• Labor and Workforce: Labor availability in supply chain roles – from warehouse staff to truck drivers to port workers – is poised to improve slightly in late 2025 compared to the last couple of years. As mentioned, a cooling economy is already easing the ultra-tight job market. Unemployment, while still low, is ticking up gradually, and anecdotal reports suggest it’s becoming a bit easier to hire warehouse associates and hourly manufacturing labor in some regions. If the Fed’s rate cuts are indeed coming because they see higher unemployment aheadfile-8ca5d51wrmsdbxsaxnwhtv, then by Q4 we could have a more balanced labor market. That said, “easier” is relative – many logistics operations still report worker shortages, just less severe than before. Warehouse labor in major ports (LA/Long Beach, NYC/NJ) remains in demand, especially with record volumes moving into bonded facilities. But wage pressures have moderated as turnover slows. Driver retention has improved because fewer new trucking jobs are available; paradoxically, some laid-off drivers from small carriers might be back as available capacity for larger fleets. For skilled roles (CDL drivers, licensed customs brokers, etc.), competition will persist, but overall labor inflation should calm down in late 2025.

There are two caveats: labor relations and strikes, and technology impacts. On labor relations, 2025 has seen its share of labor actions – in Q2, some European port strikes and U.S. rail worker disputes made headlines. Looking ahead, one potential flare could be in parcel delivery: the new UPS union contract runs through 2028, so no risk there now, but other logistics sectors (like warehouse gig workers or Amazon’s fulfillment network employees) have been pushing for unionization. A strike in a major e-commerce fulfillment or delivery network during peak season, while not highly likely, is not impossible. And globally, union activism is high – any industrial action at major ports or among trucking unions (in, say, South America or Asia) could disrupt specific trade lanes in Q3–Q4. The second caveat is technology. Automation and AI adoption in supply chain could start to visibly reduce labor needs in certain areas by late 2025. For instance, more warehouses are deploying robotics for picking and packing; driver-assist technologies are improving trucking efficiency. The full impact is longer term, but companies are already using tech to offset labor shortages. One result is that productivity per worker is rising, which could mean you don’t need to hire as many seasonal workers in Q4 as you did in the past to handle the same volume. Still, training and upskilling existing staff to work alongside these new technologies will be a focus. In sum, the labor outlook is cautiously improving for employers, but don’t assume labor challenges are over. Continue to invest in employee retention and training – it pays off when the market swings back or when new tech comes in.

In summary, Q3–Q4 2025 will test supply chains, but it won’t be a repeat of the unprecedented crises of 2020–2021. We’re in a different phase now – one that rewards agility and informed strategy. Manufacturers, retailers, and logisticians who stay alert to trends, adapt quickly, and seize on the favorable aspects (like lower transport costs) can thrive even amid the challenges. The holiday peak season will likely be smoother than the past couple years, yet new challenges could emerge from the geopolitical realm. It’s a time to be vigilant but also to optimize and build for the future.

Is your supply chain prepared for what’s next? At Euro-American Worldwide Logistics, we help businesses chart a steady course through uncertain waters. Whether it’s adjusting your freight plan for peak season, finding warehousing solutions, or navigating the latest trade regulations, our experts have you covered.

Don’t go it alone this year. Contact Euro-American Worldwide Logistics today to discuss your Q3–Q4 logistics strategy. Let us put our global network and seasoned insight to work for you – so you can focus on growth while we handle the complexity. Reach out now and fortify your supply chain for a strong finish to 2025!

In June 2025, global trade tensions remain high even as some key agreements offer relief. The United States and China have reached a tentative truce to halt further escalation of their trade war. President Trump announced a framework deal fixing U.S. tariffs on Chinese goods at a steep 55% (up from 30%), while China’s retaliatory tariffs stay around 10%. This compromise (pending final approval by both nations) also sees China removing export curbs on rare earth minerals and welcoming back Chinese students to U.S. universities. Despite easing the threat of “triple-digit” duties, the new rates cement a high-cost baseline for U.S.–China commerce. Indeed, U.S. seaborne imports from China plummeted 28.5% year-on-year in May as earlier rounds of tariffs bit, driving U.S. buyers to alternative suppliers. China’s own exports to the U.S. fell by $15.2 billion in May, contributing to a sharp slowdown in China’s overall export growth (weforum.org). These figures underscore how severely the tariff volleys have disrupted trade flows on both sides. Importers are responding by shifting sourcing: shipments from Vietnam, India, Thailand and Mexico to the U.S. have surged double-digits to fill the gap.

Beyond the U.S.–China standoff, other trade partners are adjusting to the new tariff landscape. U.S. and UK officials have finalized a trade agreement that will lower or remove tariffs on many British exports such as automobiles, aerospace parts, steel and aluminum. This “Economic Prosperity” deal establishes quotas for UK-made cars (100,000 vehicles annually at a reduced 10% U.S. import tariff) and commits both countries to tariff-free trade in certain aerospace products (whitehouse.gov). The pact aims to offset the damage of recent U.S. tariffs on UK goods – British exports to the U.S. had plunged by 33% in April (a record £2 billion drop) when the new American duties took effect. Across the Channel, European Union industries are also reeling. Eurozone exports to the U.S. fell over 10% in April, contributing to a steep 8.2% monthly drop in the EU’s external trade (reuters.com). Major European exporters like Germany saw shipments to the U.S. dive by double digits under the strain of higher U.S. import taxes. China, for its part, is courting new markets – Beijing just announced elimination of tariffs on imports from 53 African countries, an outreach to boost trade with developing economies as U.S. demand weakens.

Freight Market Trends in Mid-2025

Global logistics costs and capacity have been whipsawed by these trade developments, as well as ongoing post-pandemic adjustments. Here is a breakdown of current freight market conditions across major modes of transport:

• Ocean Freight: Container shipping rates spiked in early June as U.S. importers rushed to beat the expiration of temporary tariff reductions. After six consecutive weeks of rising spot prices, Drewry’s World Container Index slipped 7% to $3,279 per 40’ container in mid-June, indicating the surge may be tapering off. Carriers had cut back sailings in April–May when U.S.–China volumes plunged, but are now restoring capacity on trans-Pacific lanes to accommodate front-loaded orders. Freight rates from Asia to U.S. West Coast ports jumped dramatically (up 73–81% over six weeks through early June) amid the rush . However, analysts expect excess vessel supply and softer demand to reassert downward pressure on rates in the 2nd half of 2025, especially if tariff hikes resume. On Asia–Europe routes, the redeployment of ships to the Pacific has caused short-term tightening; June spot rates from Shanghai to North Europe ticked up by ~10% (drewry.co.uk). Overall, ocean carriers are managing capacity carefully through blank sailings and could even face new challenges like U.S. port fees on Chinese-built vessels (a surcharge on ships effective October 2025) which may prompt fleet reshuffling. For importers, the current ocean market offers lower year-on-year shipping costs but also volatility – it’s a buyer’s market for now, yet prudent shippers are booking well in advance to lock in space and rate stability.
• Air Freight: Air cargo trends are mixed by region but capacity constraints are emerging on key lanes. In Asia, export airlines are entering a volatile period: the 90-day tariff truce on Chinese goods expires in August, so Chinese shippers are front-loading air shipments through late June and July. This is driving up trans-Pacific air cargo demand in the near term. At the same time, lower U.S. tariffs on other countries’ goods end on July 9, spurring a broader push to move merchandise now. As a result, Trans-Pacific eastbound air routes are seeing a sharp but likely temporary spike in volumes. Capacity is tightening out of major Asian hubs, and air rates may rise for last-minute space heading into July. In contrast, Europe’s airfreight market is relatively stable – outbound capacity to North America and Asia is largely balanced, helped by recovering passenger belly capacity. However, certain specialized sectors (pharmaceuticals, aerospace) face pockets of higher air rates and transit delays due to their unique handling needs. North American air gateways still have some congestion; West Coast airports in particular are capacity-constrained because Asia-U.S. passenger flights have not fully rebounded and e-commerce volumes, while softer than last year, still strain throughput. Overall, air cargo rates in mid-2025 remain well below the extreme peaks of 2021–22, but shippers should anticipate rate volatility on trans-Pacific lanes over the next two months. Building extra lead time (or using charter options for critical freight) is wise as the tariff deadline approaches.
• Truckload and Intermodal (Rail): In North America, the domestic trucking market is saturated with capacity. Truckload spot rates have been sluggish, reflecting what one logistics firm calls an “elongated state of carrier oversupply”. Ample trucking availability is keeping transportation costs in check for shippers on local and regional hauls. This dynamic likely persists until enough small carriers exit the market or freight demand picks up later in the year – current projections suggest normalization by early 2026 if trends hold. On the rail side, there are signs of a rebound in intermodal demand as imports flow in. U.S. West Coast ports saw volumes plunge in May due to the tariff war, but as the tariff pause unleashed pent-up imports from China in June, the Ports of LA/Long Beach have quickly gotten busier. Consequently, demand for inland intermodal (containers moving from the West Coast by rail) is spiking. Many shippers are taking advantage of cheaper intermodal rates for freight that isn’t time-sensitive – a cost-saving strategy given trucking’s faster service isn’t needed for every load. Intermodal providers are generally ready for this uptick; rail networks have capacity after earlier volume declines. We do note that drayage (port trucking) in some hubs faces delays, partially due to rail yard transitions like the CP–KCS railroad merger causing short-term disruptions. But overall, inland transport is fluid. Importers moving heavy or bulky loads inland from ports right now can capitalize on favorable trucking and rail pricing, especially if they plan around any localized bottlenecks.
• Warehousing and Inventory: The warehousing sector is at an interesting inflection. After two years of rapid expansion, U.S. industrial capacity is catching up with demand. The national warehouse vacancy rate has risen to ~7% (up from under 5% during the peak of 2022), easing pressure on space . Rent costs had even leveled off or dipped over the past year. However, recent activity suggests a turn: the Warehouse Pricing Index just increased for the first time in 13 months in Q2 2025. This uptick is driven in part by front-loaded inventories in port markets – as companies import goods early to get ahead of tariffs or potential supply disruptions, they are filling coastal warehouses. Another factor is the surging interest in bonded storage and Foreign Trade Zones (FTZs). Search activity for bonded/FTZ warehouse space skyrocketed 150% in the last quarter. Importers are actively considering FTZs as a “safe harbor” to hold goods without incurring duties. By storing products in a bonded facility or FTZ, they can defer or even avoid tariffs (for example, by re-exporting or waiting to see if tariff policies change) (warehousequote.com). Many firms find the flexibility worth the extra cost of these specialized warehouses. Overall warehouse pricing is still moderate across most inland U.S. markets, but hotspots like Los Angeles, Houston, and New York (near ports) are seeing capacity tighten again due to the wave of incoming inventory. For exporters, one concerning trend is container availability: with fewer imports earlier this spring, empty containers became scarcer at inland locations, a situation that could persist if ocean carriers reallocate equipment to high-demand lanes. Businesses should monitor warehouse capacity and container supply closely as we head into peak season. Securing space or equipment early – or using creative solutions like “pop-up” storage and drop containers – may be necessary if inventory levels suddenly rise.

Is your supply chain prepared for what’s next? At Euro-American Worldwide Logistics, we help businesses chart a steady course through uncertain waters. Whether it’s adjusting your freight plan for peak season, finding warehousing solutions, or navigating the latest trade regulations, our experts have you covered.

Don’t go it alone this year. Contact Euro-American Worldwide Logistics today to discuss your Q3–Q4 logistics strategy. Let us put our global network and seasoned insight to work for you – so you can focus on growth while we handle the complexity. Reach out now and fortify your supply chain for a strong finish to 2025!

Current tariff and freight conditions present a complex mix of cost opportunities and operational risks for importers and exporters. Manufacturers and distributors should consider the following implications:

• High Tariffs Persist – Plan Sourcing Strategically: The U.S.–China truce locked in steep tariffs rather than eliminating them. 55% import duties on Chinese goods will continue to inflate costs for U.S. importers. Companies must keep pursuing supply base diversification. Many have already shifted sourcing to Vietnam, India, Mexico and other locations that aren’t subject to such tariffs, a trend reflected in those countries’ double-digit export jumps to the U.S. Evaluate your supplier mix for tariff exposure – it may be prudent to qualify new vendors in tariff-free countries or negotiate cost sharing with Chinese partners. On the flip side, exporters in certain countries might gain an edge: for example, UK automotive and aerospace firms now face lower U.S. tariffs under the new bilateral deal (weforum.org), potentially opening up opportunities to reclaim lost sales. Ensure your sales teams and freight forwarders understand the latest duty rates so you can price competitively in each market.
• Use Tariff Mitigation Tools: Where shifting sourcing isn’t feasible, explore ways to mitigate the impact of duties. The resurgence of bonded warehouses and FTZ usage is telling – importers are parking goods in bonded storage to defer duty payments. This can improve cash flow and even reduce ultimate tariff costs if some inventory is later re-exported or if tariff rates change before goods enter U.S. commerce. Setting up an FTZ or bonded warehouse program requires planning (and these facilities charge premiums), but for high-tariff goods (some categories now face combined duties well above 50%), the savings can be substantial (warehousequote.com). Additionally, stay alert to legal developments: courts are reviewing the legality of certain U.S. emergency tariffs. There’s a possibility that some tariffs could be rolled back via litigation – for instance, the 20% fentanyl-related tariff on China was challenged in May – which might entitle importers to refunds. Partner with customs brokers or trade attorneys to file duty refund claims and use tariff engineering strategies (like adjusting product classifications or minor assembly in FTZs) where appropriate.
• Take Advantage of Easing Freight Costs – but Hedge Against Volatility: Compared to the supply chain crunch of a couple years ago, current logistics costs are markedly lower in many areas. Ocean freight spot rates on major lanes are 10–20% cheaper than last summer, and domestic trucking rates are near multi-year lows amid the capacity glut. This is a great time to negotiate long-term freight contracts or to lock in capacity at favorable rates. Large importers have been opportunistically pulling forward their Q3 orders to ship under the lower tariffs and cheaper transport in place now. If you have the flexibility (and warehouse space), advancing some shipments could save significant costs. However, don’t assume today’s conditions will last indefinitely. There is still potential for rate swings. For example, if the U.S.–China tariff ceasefire lapses in August without extension, we could see another scramble for space (and a bump in spot rates) before higher duties resume. Geopolitical shocks – like an escalation in the Middle East conflict – could send fuel prices soaring overnight, raising bunker surcharges for ocean and jet fuel costs for air. Build some buffers into your transportation budget. Consider multi-modal options too: you might ship a portion of cargo by ocean for economy, and a portion via faster air or expedited service to protect against unforeseen delays. A balanced logistics portfolio will help you react if conditions suddenly tighten.
• Monitor Geopolitical Hotspots and Reroute If Needed: The Israel–Iran conflict is a prime example of a wildcard that can impact supply chains. The recent exchange of strikes in the Middle East pushed Brent crude oil prices up over 13% in a day (settling ~7% higher) (reuters.com), a reminder of how quickly fuel costs can spike. Thus far, oil markets have avoided a “super spike” and key shipping lanes remain openfile-8ca5d51wrmsdbxsaxnwhtv. But importers/exporters should have contingency plans if things worsen. Iran has threatened to close the Strait of Hormuz, a chokepoint carrying ~20% of the world’s oil (roughly 18 million barrels per day). A closure would be extremely disruptive – affecting not just petroleum shipments but also container routes in the Gulf. While such a drastic move is considered a last resort, many commercial vessels are already avoiding Iranian waters near Hormuz as a precaution. If your supply chain involves Middle Eastern ports or sourcing, stay in close contact with carriers and 3PLs about routing options. Ships can be re-routed around the Cape of Good Hope or via pipeline alternatives, but at added time and expense. Likewise, keep an eye on other flashpoints (e.g. the Russia–Ukraine war’s impact on air corridors and insurance costs, or any renewed labor strikes at ports in Europe which have caused backups ). In short, global shippers must remain agile. Build resiliency by qualifying alternate suppliers in different regions and diversifying your carrier base. If 2025 has taught us anything, it’s to expect the unexpected in trade and transport.

Bottom Line: Despite the challenges, these conditions also present opportunities for those who prepare. Companies that proactively manage tariffs (through smart sourcing and duty mitigation) and optimize their logistics (locking in good rates, leveraging available capacity, and planning around geopolitical risks) can actually improve their supply chain cost efficiency this year. The key is staying informed and being ready to pivot.

Need help making sense of it all? Euro-American Worldwide Logistics is closely monitoring these fast-moving developments. We’re advising clients on tariff strategy, offering creative shipping solutions, and securing capacity at the best rates. Now is the time to review your logistics plans for the coming months. Contact Euro-American Worldwide Logistics today for an expert consultation on navigating tariffs and optimizing your freight operations – so you can protect your margins and keep your supply chain moving smoothly.

In today’s competitive logistics landscape, a Warehouse Management System (WMS) does far more than track inventory—it drives the efficiency, accuracy, and transparency that customers increasingly expect. For manufacturers, importers, and distributors, leveraging a WMS is not just about internal optimization; it’s about delivering a better end-to-end experience for clients and end users alike.

Below, we explore how a well-implemented WMS directly contributes to customer satisfaction and operational excellence.

Smarter, More Efficient Operations

A WMS simplifies complex warehousing tasks by automating key workflows—from inbound receipt to outbound shipping. By minimizing manual errors and streamlining product handling, Euro-American ensures your goods move through our facility quickly and accurately. This reliability reinforces your reputation with customers, who benefit from consistent and on-time deliveries.

Better Inventory Visibility

Having real-time visibility into inventory levels is essential for businesses that need to meet tight production or fulfillment timelines. Our WMS allows for precise stock tracking and replenishment, helping to avoid backorders and stockouts. Customers know the products they need are available and accounted for—building trust and reducing the chance of order disruptions.

Real-Time Data, Real-Time Confidence

With integrated data access, our clients can stay informed throughout every stage of the logistics process. Our WMS offers real-time insights into product location, order progress, and shipment readiness. This level of visibility enables proactive communication and accurate customer updates, which strengthens your service and brand credibility.

Faster, More Accurate Fulfillment

Order accuracy and speed are non-negotiables in life sciences and high-value product logistics. Our WMS supports optimized picking, packing, and shipping processes to reduce fulfillment times and eliminate costly errors. For customers, this means faster delivery, fewer returns, and a seamless experience from order to receipt.

Cost Savings with Long-Term Impact

An efficient WMS reduces unnecessary handling, lowers inventory discrepancies, and helps optimize labor across the warehouse. These savings translate into more competitive service pricing and a leaner supply chain—benefits that extend directly to customers in the form of lower costs and improved responsiveness.

Stronger Customer Support

Access to detailed inventory and order data gives our customer service team the ability to resolve issues quickly and effectively. Whether it’s tracking a shipment, verifying stock availability, or answering a time-sensitive request, we’re equipped to deliver responsive, informed support that strengthens client relationships.

Euro-American’s WMS Advantage

At Euro-American Worldwide Logistics, our state-of-the-art WMS is fully integrated across our GMP-compliant, ISO-9001 certified storage and distribution operations. We provide real-time inventory tracking, full audit trail visibility, and the system flexibility to support complex client requirements—especially in life sciences, pharmaceuticals, and specialty import/export.

Looking for a logistics partner with secure, transparent, and fully integrated warehousing?

Contact Euro-American Worldwide Logistics to learn how our WMS-enabled warehousing and distribution solutions can support your growth.

Executive Summary

As global shipping patterns shift in response to economic, regulatory, and geopolitical factors, supply chain leaders must reassess their freight strategies. Ocean and air freight markets are displaying contradictory trends — ocean capacity remains stable, while air cargo pricing rises due to urgency-driven demand. For pharmaceutical and biotech manufacturers operating in a highly regulated space, adapting to these freight fluctuations is essential to avoid delays, stockouts, and compliance violations.

This white paper explores how logistics agility, cost visibility, and flexible transportation options can help companies mitigate risk and build a more resilient logistics strategy in 2025 and beyond.

Global Ocean Freight Trends: Stable Capacity, Shifting Demand

The April 2025 LogisticsPulse report highlights that ocean freight capacity remains balanced across all major trade lanes. However, pricing remains volatile, influenced by geopolitical unrest and rerouted traffic around the Red Sea. The Drewry World Container Index showed rates were down 25% year-over-year by mid-March, but this drop may be temporary as global capacity tightens heading into peak season.

Implication: Pharmaceutical and biotech firms relying on consistent maritime transport should secure space early and plan for contingencies, particularly for temperature-sensitive or high-value materials.

Air Freight: Costs Rise as Tariff Concerns Accelerate Shipments

Air cargo spot rates surged 8% year-over-year in Week 10 of 2025, while overall volume increased just 2%. This indicates strategic use of airfreight for critical or high-margin goods. Many U.S. importers are expediting inventory ahead of tariff implementation deadlines, contributing to the spike.

Implication: While airfreight offers speed and reliability, especially for biologics and clinical trial materials, the rising costs require better forecasting, route optimization, and alternative supplier planning.

Strategic Response: Building an Agile Freight Strategy

To stay ahead of these trends, manufacturers must:

• Diversify Modes: Balance ocean and air freight based on lead time and value of goods.
• Monitor Tariff Timelines: Understand how upcoming changes (e.g., China-linked port fees, reciprocal tariffs) could alter delivery costs.
• Leverage Regional Hubs: Use bonded and temperature-controlled storage near U.S. ports to streamline customs clearance and reduce delivery times.
• Use Real-Time Visibility Tools: Track cargo movement and environmental conditions to ensure compliance, especially for temperature-controlled goods.

How Euro-American Helps Navigate the Freight Landscape

At Euro-American Worldwide Logistics, we provide clients in the life sciences, pharmaceutical, and biotech industries with tailored multimodal transportation solutions, bonded warehouse facilities, and certified Customs Brokerage services. Our deep expertise and 24/7 monitoring ensure your cargo remains compliant, secure, and on schedule.

Our Worcester facility near Boston provides cGMP-compliant warehousing, while our in-house brokerage team manages global documentation, duty classification, and tariff advisory with precision.

Let’s Talk About Your Freight Strategy

Don’t let volatile shipping markets derail your operations. Contact Euro-American Worldwide Logistics to discuss how we can improve cost control, customs compliance, and freight reliability across your global supply chain.

References

Drewry World Container Index. (2025, March). Weekly container shipping report.

LogisticsPulse. (2025, April). Monthly Briefing. Retrieved from logisticsplus.com