Dear Valued Customers,

Thank you very much for your continued support.

This is Kitazawa from Dragon Logistics. Time flies, and it has now been four and a half years since I was assigned to Vietnam.

At the end of April, both Vietnam and Japan enjoyed extended national holidays. I hope you had a pleasant and relaxing break. As usual, I took the opportunity to travel, although finding destinations with only limited exposure to rising fuel surcharges proved to be more challenging than expected.

Unfortunately, the geopolitical tensions in the Middle East that triggered these additional charges have shown little sign of improvement even after more than two months. As members of the logistics industry, we continue to monitor the global situation closely.

We understand that many businesses are facing increasing procurement challenges and significant cost pressures. We hope this newsletter will provide useful insights into the current shipping market and our outlook for the months ahead.

Summary

1. North America Trade: Freight rates are trending upward gradually or remaining at elevated levels due to tight vessel space.
2. Intra-Asia Trade: Market conditions remain relatively stable with limited fluctuations.
3. Middle East Situation: The primary impact continues to be reflected in fuel-related surcharges rather than base freight rates.
4. Lead Time Management: While no major disruptions are currently expected, proactive planning with additional lead time is recommended.

1. North America Trade Market Overview

Although demand has not surged dramatically, reduced operating days during the holiday season and capacity adjustments by ocean carriers, including blank sailings, have resulted in temporary space constraints.

As a result, freight rates are expected to rise gradually or remain at current elevated levels rather than increase sharply. The current market trend is driven less by demand and more by carriers’ efforts to manage higher operating costs and capacity.

2.Intra-Asia Trade Market Overview

Compared with North America and Europe trade lanes, the Intra-Asia market remains relatively stable.

At present, there is no significant space shortage, and freight rates are expected to remain largely unchanged, with only minor fluctuations depending on trade lane and weekly vessel conditions.

3.Impact of the Middle East Situation

The effects of the Middle East situation are being felt primarily through increased carrier operating costs rather than changes in supply and demand.

Rising fuel prices, route diversions, and higher insurance premiums continue to support emergency fuel-related surcharges such as EFS and EBS. Although surcharge levels may be adjusted periodically, these charges are expected to remain in place for the foreseeable future.

4.Vessel Operations and Delay Risks

Since March, some trade lanes have experienced an increase in blank sailings and port omissions.

Shipping delays are not caused solely by the Middle East situation. Rather, they are occurring sporadically across different regions due to a combination of port congestion, holiday-related disruptions, and adverse weather conditions.

Recommended Solutions from Dragon Logistics

UPS Express Courier Service

Our UPS international courier service utilizes UPS’s dedicated aircraft fleet, making it a highly effective alternative during periods of market disruption. With strong space availability, this service is particularly useful when conventional air freight bookings are difficult to secure.

→ Click here for the 2026 UPS Rate Guide

Cross-Border Trucking within Southeast Asia

For shipments to neighboring countries, maintaining inventory in Vietnam can create valuable overland transportation options.

For example, if inventory is held in Vietnam, shipments to Thailand and other nearby markets can be arranged efficiently by truck.

Customers in Japan may also wish to consider utilizing non-resident inventory structures in Vietnam.

→ Click here for more information on Non-Resident Inventory

Warehouse Solutions

Procurement disruptions may encourage companies to increase inventory levels before conditions worsen.

If you require additional warehouse space for raw materials or finished goods, please feel free to contact us.

→ Click here for details of our AMATA 3 Warehouse

At Dragon Logistics, we combine ocean freight, air freight, courier services, and overland transportation to provide flexible and reliable logistics solutions even in uncertain global conditions.

If you have any questions or logistics challenges, please do not hesitate to contact us.

Thank you for your continued trust and support.

Logistics Inquiries

E-mail: business.development@draco.com.vn (Available in Japanese, Vietnamese, and English)

Contact via Our Website

Click here to submit an inquiry through our website.

Dragon Logistics

For inquiries regarding this newsletter (Japanese, Vietnamese, and English):
E-mail: marketing@draco.com.vn

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Disclaimer

This newsletter is prepared based on applicable laws and actual business practices; however, we do not guarantee that the same procedures or interpretations will apply in every case.

The information provided herein is intended for general reference purposes only. Dragon Logistics shall not be held responsible for any actions taken independently by readers based on the contents of this newsletter.

The copyright of this newsletter belongs exclusively to Dragon Logistics. Unauthorized reproduction for commercial purposes is strictly prohibited.

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