Dear valuable customer

Thank you very much for your continued support.

This is a newsletter from Dragon Logistics.

As we enter July, freight rates have surged dramatically. This increase is primarily due to the tariffs the United States is set to impose on Chinese goods (including electric vehicles, semiconductors, and medical products) starting in August. In anticipation of these tariffs, there has been a rush to expedite exports, particularly from China.

The return of empty containers has been delayed due to the situation in the Red Sea, resulting in a concentration of the limited available containers in China. Consequently, surrounding countries such as Vietnam and Japan are experiencing difficulties in securing bookings and facing soaring freight rates. Additionally, the demand for products like furniture, clothing, and footwear is reviving in Vietnam, further exacerbating the situation.

Delays are also accumulating as ships dock at major ports like Singapore, Busan, and Shanghai, leading to increased congestion before reaching Vietnam.

While the upward trend in freight rates continues, it is believed that the current increase in container cargo is largely driven by expedited shipments in anticipation of the tariffs. On the supply side, the delivery of new vessels is expected to continue, increasing shipping capacity. Therefore, many expect the peak season to end earlier than usual, with a potential slowdown in freight rates once the tariffs take effect in August.

However, there are concerns about potential strikes by the two major freight railways in Canada. Additionally, unexpected labor disruptions on the East Coast of North America could impact port operations. If unions go on strike after the current labor agreement expires at the end of September, it could affect operations across East Coast ports and potentially extend to the West Coast, leading to higher freight rates and longer lead times.

We will continue to monitor the situation closely to minimize any potential impact and will keep you informed with the latest updates. If you encounter any issues with rising sea freight rates or booking difficulties, please do not hesitate to contact us.→Here

Thank you very much for your continued support.

Warm Regards

Dragon Logistics Co., Ltd.

For inquiry（Vietnamese, Japanese, English）：marketing@draco.com.vn

This newsletter is based on information provided by our company in accordance with the law and actual practice, but we cannot guarantee that the same practice will be followed in all cases. Please understand and use this information as general information only.

Please note that we are not responsible for any actions taken by customers based on this information.

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