Freight and Logistics News and Market Update

Air

• The US issued an executive order creating a process that could impose additional tariffs on imports from countries that supply oil to Cuba, directly or indirectly. Mexico is identified in the source as a key country at risk, which could create uncertainty for Mexico origin shipments into the US if tariffs are applied.
• The Consumer Price Index increased 2.7% year over year in December 2025 before seasonal adjustment, with the energy index up 2.3% over the same period. Airline fares, medical care and personal care increased during the month, while communication, used vehicles and household furnishings declined.
• Beyond demand and capacity trends, regulatory developments are expected to play a larger role in shaping air cargo trade lanes beginning in 2026, particularly in Europe. Carbon emissions regulations and the introduction of customs duties on low-value eCommerce shipments could drive reconfiguration of existing air cargo routes as forwarders and shippers adjust network strategies.

Ocean

• The Federal Maritime Commission is reviewing whether Spain’s denial of port access to vessels carrying military-related cargo is creating conditions unfavorable to US foreign trade. The review follows Spain’s refusal to allow multiple US-flag and foreign-flag vessels to call Spanish ports and recent policy measures restricting certain military cargo movements. If corrective action is deemed necessary, the commission could impose fees of up to $2.3 million per voyage, restrict voyages or limit port access for Spanish-flag vessels calling the US.
• Shippers moving cargo between Asia, Europe and the US East Coast continue to face instability on Red Sea and Suez Canal routes as security conditions fluctuate and carrier routing decisions shift frequently. Inconsistent carrier plans, limited advance visibility and unpredictable insurance availability and pricing are making it difficult for shippers to plan transit times, assess risk or manage costs. As a result, cargo owners have limited control over routing outcomes and remain exposed to sudden service disruptions and coverage gaps.
• Ongoing security risks in the Red Sea and broader geopolitical uncertainty have renewed focus on potential alternatives to major maritime chokepoints, particularly the Suez and Panama Canals. While concepts such as the Northern Sea Route, new canal projects and interoceanic rail corridors are often discussed, each faces significant seasonal, cost, environmental or political barriers that limit near-term viability. As a result, global shipping continues to rely on existing trade routes, leaving supply chains vulnerable to disruption during periods of instability.
• Ocean carriers are increasingly turning to artificial intelligence to reduce costs as competitive pressure intensifies and traditional consolidation opportunities dry up. AI is being applied to automate high-volume, standardized processes such as customer service inquiries, billing and dispute resolution, invoice review, and order-to-cash workflows.

Air

• Air cargo demand in Latin America and the Caribbean rose 2.3% year-over-year in December 2025, but the region underperformed globally as capacity growth outpaced demand, weighing on yields and making it the weakest-performing region that month. Globally, air cargo demand rose 3.4% year-over-year in 2025, supported by eCommerce growth and shifting trade flows toward Asia–Europe lanes, with yields easing but remaining well above pre-2019 levels despite tariff and geopolitical pressures.
• Air freight demand from South America remains elevated on lanes to the US and Mexico, with short booking windows and rising spot rates as agricultural exports from Brazil increase following tariff suspensions. Europe-bound volumes are also climbing during the peak perishables season, tightening temperature-controlled capacity and lifting rates on select routes, while alternative gateways help manage congestion. Lead times to South Asia and the Middle East continue to exceed two weeks as ocean-to-air shifts tied to Red Sea disruptions sustain pressure on limited air freight capacity.

Ocean

• Panama has appointed APM Terminals as the interim operator of the Balboa and Cristobal container terminals after Panama's Supreme Court ruled the long-standing concessions held by Panama Ports Company unconstitutional. Authorities said port operations are continuing normally and emphasized the move is intended to preserve service continuity while a longer-term solution is determined. The former operator has rejected the ruling and warned of potential national and international legal action, introducing uncertainty around terminal governance at a key hub for global and intermodal trade.
• Evergreen Marine has joined the Asia to West Coast South America WSA6 service via a slot charter agreement as container capacity on the Asia–Latin America trade surges. Direct Asia–Latin America capacity has risen roughly 45% to 50% year-over-year, driven by multiple new services launched since 2025. The rapid capacity expansion has intensified competition and pushed spot freight rates down to multi-year lows on both West Coast and East Coast South America lanes, creating a more price-pressured but higher-frequency market for shippers.

Air

• Asia Pacific airlines recorded a 5.6% year-over-year increase in international air cargo demand in 2025, supported by economic growth, supply chain realignments and rising eCommerce flows, according to the Association of Asia Pacific Airlines. Capacity grew faster than demand, with freight capacity up 6.8%, leading to a slight decline in load factors to 60.3%. Despite tariff pressures and rising operating costs, carriers remained resilient and are expected to see continued cargo growth in 2026, though trade tensions and inflation could moderate the pace.
• Global air cargo demand rebounded strongly in early January, with chargeable weight up around 5% year-over-year in the first full week after the year-end slowdown, signaling a solid start to 2026. APAC remained the primary growth engine, with outbound volumes rising about 8% year-over-year, led by strong gains on Asia–US (+10%) and Asia–Europe (+15%) lanes. Growth was driven by diversified Asian export flows, particularly from Southeast Asia as well as China, Hong Kong, Taiwan and Thailand, while rates remained slightly above year-ago levels despite recovering capacity.

Ocean

• Asia–Europe and trans-Pacific trades are experiencing earlier-than-normal pre–Lunar New Year peaks as exporters front-load shipments and carriers actively manage supply. Around 10% of planned capacity has been withdrawn through targeted blank sailings, nearly half of which are on trans-Pacific eastbound routes, helping support the market despite short-term spot rate easing. While rates have softened after the early seasonal peak, Asia outbound lanes remain structurally supported by early demand pull-forward, constrained reliability and ongoing geopolitical disruption, limiting carrier and shipper flexibility heading into and immediately after LNY.
• Ocean freight rates out of Asia fell roughly 10–12% on major Asia–US and Asia–Europe lanes as demand softened after the pre–Lunar New Year surge, prompting carriers to expand blank sailings to manage excess capacity. Spot rates from Shanghai dropped to $3,191 per FEU to the US East Coast and $2,546 per FEU to the US West Coast, while Asia–Europe lanes declined 8–9% week over week. Drewry expects further downward pressure on rates, though carriers are gradually reintroducing Red Sea and Suez capacity in a controlled manner to avoid a sharp rate collapse.

Air

• Vienna International Airport handled a record 313,763 tons of air cargo in 2025, up 5.3% year-over-year, supported by expanded long-haul belly capacity and strong growth in eCommerce and pharmaceutical shipments. Import and export volumes both increased, reinforcing Vienna’s role as a key air cargo gateway for Central and Eastern Europe.
• A new truck-air multimodal service linking inland China to Europe via road transport to Tashkent and air to Istanbul has launched, offering an alternative that balances cost and transit time for high-volume and bulky shipments. Early users report significant cost savings compared with traditional air freight, while transit times remain materially faster than ocean options, providing forwarders with more flexible routing amid tight capacity and rising rates.

Ocean

• A newly delivered ultra-large container vessel operated by Compagnie Maritime d’Affrètement – Compagnie Générale Maritime (CMA CGM) has successfully transited the Suez Canal with enhanced navigational support. Canal authorities said a limited number of CMA CGM’s largest vessels have resumed transits under special operational procedures and pricing incentives. The move reflects a cautious, carrier-specific return to the route rather than a broad resumption of regular Red Sea and Suez Canal traffic.
• Industry analysis shows container carriers are beginning a measured and selective return to Red Sea and Suez Canal routes in 2026, led by limited service resumptions on specific Asia–Europe loops. Test voyages and announced schedule changes by a small number of carriers signal cautious reentry rather than a broad normalization, with overall capacity through the canal still far below historical levels. While a wider return could shorten transit distances and ease rates over time, analysts warn the transition may be uneven and disruptive as networks adjust and geopolitical uncertainty remains.

Air

• Riyadh Air has launched cargo operations under the Riyadh Cargo brand, beginning with belly capacity on its wide-body passenger fleet and initial service on the Riyadh–London Heathrow route. Cargo is positioned as a core element of the airline’s network expansion, supported by digital cargo management systems and ground handling partnerships at major Saudi airports. The launch aligns with Saudi Arabia’s Vision 2030 strategy to strengthen Riyadh’s role as a global trade and logistics hub.
• Lufthansa Cargo will expand its short and medium haul freighter network from February 2026 by adding scheduled A321 services from Frankfurt to Rome and introducing regular connections to Algiers. Bringing Rome into the carrier’s regular freighter schedule strengthens its role as a Southern European cargo hub, while the Algiers service enhances connectivity between Europe and North Africa. For shippers, the expanded network increases routing flexibility and access to faster freight options across key Europe Africa trade lanes.

Ocean

• Mediterranean Shipping Company has announced revised freight all kinds rates for cargo moving from India and Pakistan to select European ports, effective February 9, 2026, and valid through February 28, 2026. The rates apply to shipments from major origins including Nhava Sheva, Ennore, Kolkata, and Port Qasim and cover destinations such as Antwerp and Valencia. Pricing includes base ocean freight and standard surcharges but excludes high-value cargo, International Maritime Organization classified dangerous goods, and additional cost items billed separately, reflecting ongoing carrier rate adjustments on the India–Europe trade lane.
• Damietta Port has handled the largest general cargo shipment in its history after unloading about 138,200 tons of slag shipped from China. Port officials said the operation demonstrates the port’s technical readiness following recent infrastructure upgrades and reflects growing confidence from international shipping lines. The milestone supports Egypt’s broader effort to strengthen national supply chains and position its ports as more competitive regional logistics hubs.

• Beginning February 6, 2026, US Customs and Border Protection (CBP) will begin issuing nearly all refunds electronically through the Automated Clearing House (ACH), with only limited exceptions. This change was announced in the Electronic Refunds Interim Final Rule published on January 2, 2026 (Federal Register Document 2025‑24171). CBP is encouraging the trade community to review the agency’s available guidance and resources in advance of the February 6 transition and to take any steps needed to ensure they are prepared for the shift to fully electronic refunds.
• The US and El Salvador have reached a new trade agreement that builds on CAFTA‑DR. The US will remove or cap certain reciprocal tariffs on Salvadoran goods, including giving preferential treatment to qualifying textiles and apparel. El Salvador, in turn, will streamline approvals for US products, reduce agricultural trade barriers, improve digital border processes, strengthen IP protections, avoid discriminatory digital policies, ban goods made with forced labor and deepen cooperation with the US on supply chain security and fair trade practices.
• US Customs and Border Protection has issued a new withhold release order effective January 29 that requires all US ports of entry to detain coffee produced by Finca Monte Grande in Mexico. CBP states the order is based on evidence that the farm uses multiple International Labor Organization indicators of forced labor. Importers whose shipments are detained can either export or destroy the goods or provide proof that forced labor was not involved. This action is taken under 19 U.S.C. §1307, which bans importing any goods made wholly or partly with forced or compulsory labor.
• US Administration issued an executive order on January 29 creating a process to impose additional tariffs on imports from any country that supplies crude oil or petroleum products to Cuba. The commerce secretary must first determine whether such transfers occurred, after which senior US officials will jointly recommend whether tariffs should be applied and at what level. The order took effect at 12:01 a.m. on Jan. 30, allowing tariffs to be enacted as soon as findings are made.