Jaguar Freight | The Weekly Roar: Tangled up in Tariffs

In this week’s Roar: Difficult times for planning, a positive Red Sea update, steady operations at the Port of Long Beach, the strength of Asia-Europe trade, and accelerated AI adoption due to tariffs.

For the moment, tariff-related headlines have quieted. However, ongoing tariff drama and a pending Supreme Court decision continue to have an impact. A significant challenge is how difficult long-term planning has become for importers and carriers. For example, many retailers stocked up early to avoid holiday surprises, but forecasts show import volumes sliding through early 2026, with market uncertainty showing no signs of letting up.

Skepticism is understandable, but the Houthis have announced a pause in Red Sea attacks and lifted their naval blockade on Israel. Will it stick this time? Their commitment is dependent on whether the Gaza conflict escalates, but this has allowed some shipping lines, such as CMA CGM, to cautiously test a return to the Suez Canal.

Despite October imports at the Port of Long Beach dropping 17.6% year-over-year, year-to-date volumes are still outpacing 2024’s record. Port leaders credit steady operations and cost-sharing for limited consumer impact so far, but warn higher tariffs could soon push prices up.

Small and medium-sized businesses are upbeat about Asia-Europe trade, with 87% of European SMEs expecting exports to the region to rise or remain strong, and 85% of Asia-Pacific SMEs planning to expand into Europe. Top opportunities include China, Japan, and India, but changes in regulations and the current complexity of customs are big concerns. Many SMEs express a need for improved digital tools and customs expertise to help streamline their operations.

A new study finds 71% of global businesses accelerated AI adoption due to tariffs and market volatility, with nearly all experimenting with AI. But only 20% can make real-time decisions, and just 22% have a clear AI strategy. Top AI uses include predictive analytics, but only a few firms are using it for supplier monitoring or risk tracking, despite pressing challenges. So far, integration is happening the fastest in the Asia-Pacific and Europe, but adoption still remains limited, potentially due to a gap between leadership optimism and practical implementation on the ground.

For the rest of the week’s top shipping news, check out the article highlights here.

Compliments of Jaguar Freight – A member of the EACCNY