Reasons Your Supply Chain Costs Are Rising as Shipping Rates Crash
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Reasons Your Supply Chain Costs Are Rising as Shipping Rates Crash
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This episode provides an expert overview of the profound volatility facing the global transportation and supply chain sectors during late 2025, highlighting a structural paradox of declining spot rates alongside surging operational costs. Specifically, the texts note the continued dramatic drop in ocean container rates due to weak demand while simultaneously detailing massive cost inflation driven by geopolitical rerouting and new compliance mandates. Key policy shocks include the abrupt expiration of US Electric Vehicle (EV) tax credits and major new US trade tariffs, such as the suspension of the de minimis rule, which dramatically increase logistics complexity for imports. Furthermore, the industry is intensely focused on high-cost decarbonization efforts, including impending deadlines for the EU Emissions Trading System (ETS) and investments in technologies like Onboard Carbon Capture Systems (OCCS), which are necessary to meet stringent global climate targets.