Freight and Logistics News and Market Update

Air

• Air cargo capacity grew 6% last year, returning to 2019 levels for the first time. Demand is expected to trail capacity growth this year, creating an unbalanced market with excess supply. eCommerce demand continues to absorb capacity, particularly on Asia-Europe and transpacific lanes, while capacity on transatlantic westbound routes is expected to remain tight until carriers begin summer schedules.

Ocean

• The Port of Saint John in New Brunswick, Canada has completed a four-year upgrade of its marine terminal that expanded container capacity from 150,000 TEUs to 800,000 TEUs and enabled calls by post-Panamax vessels of 10,000 TEUs or more. The project added a new 1,131-foot berth with a 56-foot depth and expanded intermodal rail capacity to support longer train blocks, contributing to a 400% year-over-year increase in container volumes handled in 2025.

Air

• According to the International Air Transport Association (IATA), global air cargo demand grew 5.5% in November 2025 compared to the same period last year. In Latin America and the Caribbean, demand fell 4.8% year-over-year while capacity declined 3.0% during the same period.

Ocean

• Brazil is investing in a multi-billion dollar international bridge that will connect Porto Murtinho in Mato Grosso do Sul to Carmelo Peralta in Paraguay as part of the Bioceanic Route, a corridor linking the Brazilian Midwest to road networks that reach Chilean and Peruvian ports. The project could cut arrival times for cargo from China by up to 15 days and allow up to 250 trucks to cross per day.
• In 2025, the Port of Santos in Brazil handled its highest annual cargo volume on record at 186.4 million tons, driven largely by agricultural exports, with China remaining its largest trading partner.

Air

• Forecasts show the Asia-Pacific region leading global air cargo growth through 2028 with a projected 4.3% compound annual growth rate, supported by strong manufacturing activity, expanding cross-border eCommerce and robust consumer demand. Southern Asia and Southeast Asia are expected to grow the fastest, driven by India’s economic expansion and the region’s growing role in China+1 supply chain strategies, positioning APAC as a major global air cargo hub.
• APAC airlines recorded strong performance in November 2025, with air cargo demand rising 10.3% year-over-year, well above the global average of 5.5%. Capacity increased 8.4% during the same period, reflecting resilient regional trade activity and improved manufacturing sentiment despite ongoing global tariff uncertainty. With a 34.3% share of global air cargo volumes, APAC carriers remain a key driver of market growth entering 2026.

Ocean

• Trans-Pacific container freight rates out of Asia are rising as shippers front-load cargo ahead of Lunar New Year factory closures, while Red Sea diversions are extending transit times and tightening effective capacity. Rate increases have been reported across Asia-Europe, Asia-Mediterranean and Asia-US lanes in recent weeks, and pricing is expected to remain elevated or rise further heading into the holiday period.
• Thailand has proposed a USD 28 billion Landbridge project that would create a direct road‑rail‑port connection across its southern peninsula, offering a faster, cheaper alternative to the congested Malacca Strait. The route is expected to cut shipping time by four days and reduce costs by 15%, with capacity to handle over 33 million TEUs once completed in 2030. The project could significantly benefit regional trade, especially India, by improving efficiency and easing reliance on the Malacca Strait.

Air

• Global air cargo shipment volumes increased at the start of 2026, with weekly chargeable weight up about 26% week-over-week and total volumes 5% higher than the same period last year, led by Asia-Pacific to Europe routes. Average global rates declined slightly week-over-week but remained broadly in line with levels seen at this time last year, pointing to stable early-year demand conditions.

Ocean

• Maritime traffic through the Suez Canal showed early signs of partial recovery in early 2026 as regional security conditions improved. Ultra-large container vessels have resumed transits, reflecting renewed confidence in the canal’s role in global shipping. Forecasts suggest operations could continue to improve through the second half of 2026, supporting longer-term trade planning.
• The Port of Rotterdam will install shore power systems at major terminals, allowing ships to switch off engines while at berth. For shippers and importers, this supports cleaner air, lower noise levels and more reliable port operations, with annual emissions reduced by about 96,000 metric tons of CO₂. The systems will be operational two years ahead of EU requirements, giving customers additional lead time to plan lower-emission shipments in Europe.

Air

• Oman Air Cargo has announced a new Muscat–Kigali route, subject to regulatory approval and scheduled to launch in June 2026. The service will operate using Boeing 737 passenger aircraft, adding belly-hold capacity for perishables, pharmaceuticals, express and general cargo. The route strengthens East Africa connectivity by allowing exporters to move goods via Muscat to markets across the Middle East, Europe and the Indian subcontinent.
• SolitAir has expanded scheduled freighter services from Dhaka, giving freight forwarders fixed weekly capacity on routes to Dubai World Central and Hong Kong. The airline operates five weekly Boeing 737-800F flights, including four to Dubai World Central and one to Hong Kong, with payloads of up to 20 tons. The program-based schedule allows forwarders to plan shipments in advance for general and time-sensitive cargo, with local commercial operations in Dhaka handled by General Sales Agent BAEI Worldwide Logistics.

Ocean

• Red Sea Container Terminals (RSCT) has unveiled Egypt’s first semi-automated container terminal at Sokhna Port within the Suez Canal Economic Zone. Developed by Hutchison Ports, CMA Terminals and Cosco Shipping Ports and operated by Hutchison Ports, the terminal is located near the southern entrance of the Suez Canal and is designed to handle the world’s largest container vessels. Phase I includes a 1,200-meter quay with an 18-meter draft, initial capacity of 1.7 million TEU expandable to 3.5 million TEU, and automation supported by remote-controlled STS cranes, RTG cranes and the nGen terminal operating system.
• Messina Shipping has resumed maritime operations to Syria, reinstating port calls that were previously suspended due to security and operational conditions. The carrier confirmed that vessels will again call at key Syrian ports for containerized cargo following upgrades to operational protection and port readiness. Messina said the decision reflects its assessment of improved operating conditions while maintaining compliance with international regulations and safety standards.

• As of January 15, 2026, a limited set of US imports of high-performance semiconductors and derivative products used in advanced AI computing are subject to an additional 25% tariff under Section 232. The duty applies to products that meet defined Total Processing Performance and DRAM bandwidth thresholds, while chips imported for US infrastructure and development use are exempt. Use-based exclusions require supporting documentation, with detailed product coverage and exemptions outlined by US Customs and Border Protection.
• The Federal Communications Commission has restricted imports of foreign-made drones by adding them to its Covered List, marking the first time the agency has taken this step for an entire product category. New FCC equipment authorizations, which are required to import, market or sell drones in the US, are no longer issued for covered models. The restriction does not apply to drones or components that were authorized by the FCC before the change.
• In its December 31, 2025 Customs Bulletin and Decisions, US Customs and Border Protection proposed reclassifying combination automotive fuel pumps and fuel level sensors as pumps for internal combustion engines under HTSUS 8413.30.90, subject to a 2.5% duty, instead of as liquid measuring instruments under HTSUS 9026.10.20, which are duty free. The proposal would revoke ruling NY 809868 and is based on CBP’s determination that the pump function is the primary purpose of the composite item, with the fuel level sensor considered ancillary. Comments on the proposed change are due by January 31.