Jaguar Freight | The Weekly Roar – The end of the tariff pause, why supply chain resilience is not optional, an update on air cargo demand, the PMI up slightly, and the growing demand for supply chain automation.

With President Trump’s 90-day tariff pause ending this week, many governments (particularly in Asia) continue the struggle to secure new trade deals with Washington. Only deals with the UK, Vietnam, and a limited agreement with China have been announced to date. Japan faces steep auto and metals tariffs, with talks stalled, and South Korea was hoping for a new FTA but sees little chance of that happening before the deadline. India’s talks have stalled over agriculture, and Southeast Asian countries are scrambling for last-minute deals, but success remains uncertain across the region.

In what seems to be our new era of unending disruptions, supply chain resilience is no longer optional. Industry experts continue to stress that shippers need to adapt to a market shaped by compound disruptions including geopolitical tensions, legal uncertainties, and climate risks. Proactive planning, scenario analysis, and real-time data harnessing are now vital for risk management. Digitalization and closer collaboration between shippers and carriers are also more important than ever, as it enables businesses to forecast, respond, and stay agile.

Global air cargo demand grew by 2.2% in May 2025 versus last year, despite trade disruptions and a sharp 10.7% decline on the Asia-North America route. The surge is mainly due to new U.S. trade policies and changes in de minimis exemptions. Asia-Pacific airlines led with strong 8.3% growth, while North America posted the largest drop at -5.8%. Lower jet fuel prices and larger than normal air cargo volumes have helped buffer global volatility. The goods news is the sector remains agile overall, adjusting to geopolitical uncertainty and dynamic market conditions.

June’s Institute for Supply Management (ISM) report shows U.S. manufacturing improved but still contracted for the fourth straight month, with the PMI rising slightly to 49.0. Production moved into growth territory, but new orders continued to contract, and employment declined. Unending uncertainty around tariffs and global risks, including commodity volatility and Chinese export controls, are weighing on the sector. While imports rebounded ahead of the upcoming tariff pause expiration, weak order backlogs raise concerns about future production. There is some progress, but ongoing volatility and a lack of clarity make it difficult for manufacturers to plan and invest with confidence.

Stakeholders are increasing pressure on supply chains, demanding they become more sustainable. And that is pushing automation as the perfect tool for balancing efficiency with environmental responsibility. Automated solutions such as energy-efficient equipment, and warehouse management software not only boost productivity but also cut energy use, reduce waste, and lower emissions. It’s not necessarily an easy path though, with very real issues like legacy systems and upfront costs. But optimizing workflows and collaborating with partners can help maximize results. The use of automation will support better inventory management, dynamic replenishment, and streamlined processes, making it possible for companies to minimize waste, shrink their carbon footprint, and meet their sustainability targets without sacrificing performance.

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.