Jaguar Freight | The Weekly Roar – The Peak Season Confidence Report, a growing China-EU bond, China’s new overland route, Mexico’s plans to impose new tariffs, and opportunities still exist in air cargo.

According to a 2025 Peak Season Confidence Report, 84% of industry leaders believe their supply chain systems are ready for peak demand, representing a significant improvement over last year. Additionally, fewer leaders anticipate tough conditions for the remainder of the year. This likely indicates investments in technology integration and workforce strategies, such as cross-training and early seasonal hiring, are working. Supplier diversification is now a core strategy for many, with companies focusing on data interoperability and real-time visibility rather than more experimental projects. Overall, 76% expect to outperform competitors and 66% anticipate improved profit margins.

Not surprisingly, there is fallout from the trade wars besides just higher tariffs. Chinese ecommerce and logistics firms are rapidly expanding warehouse space across Europe as manufacturers are pushed to diversify markets. In the U.K. alone, Chinese companies have leased over 2 million square feet in 2025, close to pandemic-era highs, with similar demand seen in Germany, Poland, and Italy. Analysts say Europe offers the last major growth market, with geopolitics and tariff uncertainty fueling demand.

Speaking of China and Europe, the top U.S. competitor is developing an overland trade route through Chongqing, aiming to connect Asia and Europe while bypassing traditional sea routes like the Suez Canal to avoid geopolitical tensions. The rail corridor, now a major logistics hub, offers shipping times 10-20 days faster than by sea and links Southeast Asia to Europe. This “Middle Corridor” also shows China’s efforts to reduce reliance on Western-controlled shipping lanes.

Meanwhile, it seems other countries may be following the U.S.’s lead on trade strategies. Mexico plans to impose a 50% tariff on Chinese imports, including cars, textiles, and plastics, in its 2026 budget proposal to protect domestic industries and address U.S. concerns. Additionally, it has announced an immediate ban on finished footwear imports due to unfair competition, and with the end of Washington’s de minimis tariff exemption for low-value imports, it’s also suspending small-package postal shipments to the U.S.

Despite a challenging outlook for air cargo introduced by new tariffs and the end of the de minimis exemption, experts say opportunities still exist. There is some expectation for peak season volumes to drop in comparison to last year, but they aren’t predicting an airfreight recession. And while there are warnings that ongoing tariff disputes and trade uncertainty will be harmful, it’s not all doom and gloom since the industry often finds an opportunity in the midst of disruption. Take, for example, July’s 5% volume increase from front-loading ahead of tariffs.

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.