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Airfreight Surge Signals Supply Chain Alarm Ahead of New U.S. Tariffs

Airfreight Surge Signals Supply Chain Alarm Ahead of New U.S. Tariffs

The Logistic News by The Logistic News
April 2, 2025
in Air, Logistic
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Airfreight Surge Signals Supply Chain Alarm Ahead of New U.S. Tariffs
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By Maria Kalamatas | The Logistic News | April 2, 2025

Global airfreight rates are climbing sharply as exporters and forwarders rush to beat the clock before the U.S. introduces what could become its most sweeping tariff regime to date. According to the Baltic Air Freight Index, calculated by data firm TAC, rates rose by 2.4% in the week ending March 31 and now stand 5.1% higher than this time last year.

This marks the third consecutive week of rate increases, driven largely by heightened urgency among shippers seeking to avoid new trade barriers expected to be announced by U.S. President Donald Trump as early as today, April 1. Industry analysts are warning that the ripple effects from the expected tariffs could destabilize fragile supply chains already strained by inflationary pressures and geopolitical uncertainties.

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Hot Routes Show Rate Pressure

Airfreight rates from key Asian and European hubs posted notable gains. Hong Kong saw a 2.6% week-on-week rise, while rates from Shanghai increased 0.6%, continuing an upward trend that has characterized the month of March. Frankfurt saw a dramatic 8.3% weekly increase, with year-on-year gains reaching 28.2%. London was even more volatile, with a 15.5% surge in rates over the week.

These figures reflect not just seasonal demand or traditional market cycles, but a strategic shift by exporters attempting to move high-value or time-sensitive goods before new U.S. trade policies upend global routing and cost models.

U.S. Market Shows Mixed Signals

Despite global upward momentum, the U.S. itself is sending mixed signals. Chicago—the nation’s busiest air cargo gateway—saw a 12.5% decline in airfreight rates, indicating that some capacity may have momentarily loosened amid market uncertainty. However, analysts believe this dip is likely short-lived.

According to TAC, the rate spikes are directly linked to “demand spurred by shippers racing to move goods ahead of April 2 when various new and tighter tariffs are expected to take effect.”

Trade Tensions Escalate

President Trump has hinted at a new wave of tariffs, calling April 2 “liberation day” in reference to his administration’s long-held stance that foreign trade practices have harmed U.S. industry. After last week’s sudden 25% tariffs on imported automobiles and auto parts, industries are bracing for wider, possibly sector-specific levies targeting global supply chain players.

While the administration initially planned tariffs at the country level, Trump’s latest statements suggest a more tailored approach could be on the horizon, sparking anxiety in sectors with complex international sourcing structures.

Automotive Sector in the Crosshairs

Industry experts are closely watching the automotive sector, already reeling from the 25% tariff announcement. Chris Clowes, a senior advisor at supply chain consultancy Scala, noted that these measures represent a “major escalation in trade policy.”

“Automotive supply chains are not built for abrupt changes like this,” Clowes explained. “One component may cross three or four countries before final assembly. Tariffs at this level force companies to reassess their supplier bases, negotiate new freight contracts, and possibly shift production altogether. That’s not a cost-neutral exercise—it’s deeply disruptive.”

He warned that such volatility in trade policy could push manufacturers to reconfigure logistics strategies mid-cycle, incurring both direct and hidden costs.

Strategic Rethinking Underway

For now, airfreight continues to serve as a pressure valve—allowing goods to reach markets before policy changes take hold. But with capacity limited and rates rising, even this temporary solution is becoming less viable for cost-sensitive cargo.

The situation is expected to intensify in the coming weeks, especially as more details emerge on the full scope of U.S. trade measures. In the meantime, forwarders, shippers, and manufacturers alike are accelerating shipments, hedging risks, and preparing for another turbulent chapter in global trade.

Maria Kalamatas is a global trade and logistics correspondent at The Logistic News, specializing in supply chain policy, airfreight trends, and international commerce.

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