Inventory & Tariffs - Many shippers front-loaded inventory ahead of tariffs, leading to unusual inventory levels for this time of year, with 77% of Flexport's customers reporting sufficient stock [2][3] - A temporary surge in airfreight demand is observed from Southeast Asian countries to beat the August 1st deadline for higher tariffs [4] - The industry anticipates potential shortages if tariff rates significantly increase, impacting businesses [6] Trade Lane Dynamics - China to US trade lane is down approximately 16% year-over-year, an improvement from a 60% drop following the April 2nd tariff announcement [7] - China's overall exports are up 5%, but exports to the US are down 16%, indicating a significant shift [8] - Southeast Asia, particularly Thailand and Vietnam, experienced a surge in exports, but face higher duty rates announced for August 1st [8] Red Sea & Suez Canal Disruption - Container ships have not been transiting the Suez Canal since December 2023 due to Houthi activity, impacting approximately 30% of global container traffic [12][13] - The disruption in the Red Sea is keeping ocean freight rates artificially high, with no foreseeable return to normal [13]