Freight and Logistics News and Market Update

Air

• Air Canada’s flight attendants ended their strike after reaching a tentative agreement with the carrier. The airline began gradually restoring flights on August 19, but full service is expected to take up to 10 days to resume. The strike, which began on August 16, led to the cancellation of about 700 flights over the weekend. It also grounded some 75% of bellyhold cargo volumes, though Air Canada said divisions worked to protect around 25% of shipments through modified operations.
• The US extended its 90-day pause on reciprocal tariffs for Chinese imports until November 10, and China responded by holding off on threatened tariff hikes on US goods. Because the deadline falls during the Q4 shipping rush, shippers may accelerate holiday orders into late October and early November to secure inventory ahead of potential changes.

Ocean

• The National Retail Federation (NRF) forecasts US container imports will fall about 20% year-over-years from September through December, driven by late 2024 frontloading and this year’s early peak tied to tariff deadlines. November is projected at 1.71 million twenty-foot equivalent units (TEUs), the lowest since April 2023. For 2025, imports are expected to total 24.1 million TEUs, down 5.6% from 2024. NRF warned that tariffs are pushing up consumer prices and could leave fewer goods on shelves.
• Mediterranean Shipping Co. (MSC) will expand its South Africa–US East Coast service on October 1 with new calls at San-Pedro, Ivory Coast and Lomé, Togo, strengthening its direct coverage as Maersk withdraws its Amex service. The expansion builds on MSC’s African terminal network bolstered by its 2021 acquisition of Bolloré’s portfolio and highlights its growing dominance in Africa–US trade. Imports from Africa to the US totaled 120,972 TEUs in 2024 with MSC handling 48% of that trade. By mid-August 2025, MSC’s share had risen to 54%, a gain expected to widen further as new US tariffs on South Africa drive frontloading and trade shifts.
• US containerized imports hit a record 2.61 million TEUs in July, rising 17.5% from June as shippers rushed goods in ahead of shifting tariff deadlines. China remained the largest source despite year-over-years declines, while Southeast Asia and the Indian subcontinent reached record highs as sourcing diversified. The ports of Los Angeles and Houston led the growth, but analysts cautioned the surge reflects tariff-driven volatility.

Air

• Preliminary data from ACI-LAC (Airports Council International for Latin America and the Caribbean) shows regional air cargo grew 2.2% in the first half of 2025 compared with the same period last year. Panama led with 15% growth, while Argentina followed with 8.3%.
• The International Air Transport Association (IATA) reported that air cargo demand in Latin America grew 3.5% year-over-years in June, even as capacity slipped 0.4% amid regional political and trade disruptions.

Ocean

• Maritime cargo has shown some recovery in 2025, but conflicts in the Red Sea and elsewhere continue to create volatility that disrupts global operations. Rerouting has significantly increased both costs and transit times. Brazil, Mexico and Panama have each recorded growth in container volumes while investing in infrastructure upgrades to improve port efficiency.
• According to Brazil’s National Waterway Transportation Agency (ANTAQ), the country’s maritime sector transported 653.7 million tons in the first half of 2025, a 1.02% increase year-over-years and the highest volume recorded since 2010. The port of Santos led with 67.9 million tons. A record grain harvest is expected to drive further cargo growth through Brazilian ports in the remainder of the year.

Air

• The International Air Transport Association (IATA) forecasts 9% growth for Asia-Pacific aviation in 2025, the strongest worldwide, fueled by rising demand from emerging economies and an expanding middle class. Air cargo remains a key source of airline profitability, supported by booming eCommerce and intra-regional trade, but faces challenges tied to infrastructure, digitalization and safety. IATA is urging collaboration on airport and airspace development, adoption of digital tools such as ONE Record and tighter compliance for dangerous goods, particularly lithium batteries. With targeted investment and regulation, the sector could unlock broader economic benefits and support millions of jobs.
• SATS (Singapore Airport Terminal Services) has opened a new Bulk Unitisation Programme (BUP) Handling Centre at Singapore Changi Airport to speed up cargo processing, increase capacity and ease congestion. The facility is expected to reduce processing times by up to 20%, while enabling SATS to resolve acceptance issues efficiently and move cleared cargo directly to the airside. It also serves as a testbed for advanced cargo-handling solutions ahead of the opening of Changi Airport Terminal 5.
• C.H. Robinson reports that airlines are reducing cargo capacity on US trade lanes following a July surge in shipments linked to tariff-driven front-loading. With inventories now full and demand softening, carriers in Asia are canceling flights, rerouting services and seeing disruption to the usual peak shipping season due to new US tariffs on markets such as Brazil. Demand for premium cargo like AI servers and cryptocurrency mining equipment remains firm, but most segments face weaker volumes, downward rate pressure and greater volatility.

Ocean

• Asia-US sea freight rates have dropped steeply since June and are expected to decline further in 2025 as overcapacity continues to outpace demand. Carriers are relying on blank sailings and service cuts to stem losses, but trade tensions, tariffs and weak global demand continue to weigh on transpacific volumes. Some excess tonnage is being absorbed through rerouting via the Red Sea and stronger demand on Europe and Latin America lanes, yet rates on the US trade are likely to stay under significant pressure.
• Asia-Europe spot rates continue to slide as carriers grapple with excess capacity, even as bookings hold steady and congestion persists at European ports. Rates to North Europe have fallen 15% over the past two months to $2,700 per FEU, while Asia-Mediterranean rates have dropped 44% to $2,600 per FEU, both roughly half of January levels. Carriers have responded with blank sailings and schedule adjustments, but modest capacity cuts, the arrival of new megaships and slipping schedule reliability are keeping rates under pressure.
• Intra-Asia carriers posted major profit gains in the first half of the year, fueled by higher freight rates, stronger volumes and capacity tightening from blank sailings earlier in the spring. SITC reported an 80% rise in net profit to $630 million as revenue per TEU climbed 23%, while TS Lines projected profit growth of up to 225% and RCL more than doubled earnings to $124 million. The robust market has prompted carriers including SITC, TS Lines, Sinokor and CK Line to place new ship orders for delivery in 2027–2028, while RCL has already added larger vessels to expand into long-haul services such as Asia-Mexico.

Air

• Envirotainer has invested in Swiss Airtainer to advance sustainable, temperature-controlled air cargo solutions for the pharmaceutical industry. The deal gives Envirotainer exclusive global rights to include Swiss Airtainer’s lightweight, IoT-enabled containers—equipped with solar panels and real-time tracking—into its portfolio. The funding will expand production and accelerate research and development, supporting the safe transport of temperature-sensitive goods such as vaccines. Both companies stressed their commitment to cutting CO₂ emissions and advancing sustainable cold chain innovation, complementing Envirotainer’s Releye product line and its broader environmental goals.
• Heathrow Airport has submitted its formal proposal for a third runway to the UK government, projecting a 50% increase in cargo capacity and a 0.43% boost to GDP. The privately financed project is framed as a major national infrastructure upgrade that could create tens of thousands of new jobs and deliver wider supply chain benefits across the country. Logistics UK has urged Heathrow to prioritize freight in the expansion, citing its role as the UK’s largest port by value. While the government has voiced support, the plan still faces hurdles, including tight emissions targets, community opposition and the need to secure a development consent order.

Ocean

• The Italian Ministry of Infrastructure and Transport has launched the digital platform “my LogIN Business” designed to accelerate company digitalization under the National Recovery and Resilience Plan (PNRR) – Measure M3C2 “Digitalization of the Logistics Chain”. With a budget of €157 million, this initiative represents a strategic opportunity to accelerate the modernization of the national logistics sector through the adoption of advanced digital technologies.
• The Port of Rotterdam Authority has joined the Responsible Commodities Sourcing Initiative (RECOSI) to advance sustainability, compliance and social responsibility in global supply chains, particularly in coal and gas. As Europe’s largest port, with more than 3,000 companies, Rotterdam aims to use its role as manager, operator and developer to promote responsible practices across logistics networks. The partnership will help the port identify risks, align with Organization for Economic Co-operation and Development (OECD) guidelines and meet EU requirements such as the Corporate Sustainability Due Diligence Directive (CSDDD). RECOSI will offer expertise, assessments and frameworks to support environmental, social and governance (ESG) progress, while both parties emphasize collaboration as essential to driving change across complex supply chains.

Air

• Saudia Cargo has signed a wet lease agreement with ASL Aviation for two Airbus A330-300 passenger-to-freighter (P2F) aircraft, enhancing its global cargo capabilities and expanding network connectivity. The aircraft will serve more than 50 destinations across Europe, North America and Asia, complementing ASL Airlines Ireland’s Boeing 737 and ATR72 freighters. Each A330-300P2F can carry up to 62 metric tons with a range of 6,850 km, accommodating 26 pallets on the main deck and 11 pallets (32 LD3 containers) in the lower hold. Under the Aircraft, Crew, Maintenance and Insurance (ACMI) lease arrangement, ASL will provide operational support including crews, maintenance and insurance. The first aircraft, MSN 1272, has completed its conversion and will operate as EI-LKD for ASL Airlines Ireland before entering service in September 2025. Delivery to Saudia Cargo is expected in the fourth quarter, along with the arrival of the second aircraft.
• Emirates recently announced the launch of service to Hangzhou, China, marking its 25th gateway across East and Southeast Asia.. The 25 gateways represent 12 different countries, with 9 gateways being serviced by freighter operations. Emirates hopes to target growing volumes in eCommerce as well as high tech, pharmaceuticals, industrial manufacturing and agricultural sectors which have continued to boom in the region.

Ocean

• Beginning in October, DP World will increase the carbon credits awarded to customers importing through UK ports. The change raises CO2e credits from 50 kg to 250 kg per container. DP World hopes the move will promote more sustainable trade and encourage the adoption of lower-carbon fuels.
• Indian exporters face unreliable ocean service as constant rate shopping creates uneven demand across carriers, leading to rolled cargo, blanked sailings and higher costs. A layered sales structure in India further inflates freight rates, with multiple agents adding margins on top of carrier pricing. These challenges are compounded by shifting vessel deployments and looming US tariffs, leaving exporters exposed to instability and sector-specific risks.
• Indian shippers exporting to the Mediterranean are facing severe capacity constraints as blank sailings tighten space, pushing rates sharply higher. Contract rates from Nhava Sheva and Mundra to Genoa have nearly doubled since June, while spot prices have climbed above $3,000 per TEU, with some September bookings set even higher. Forwarders expect the space crunch, particularly to the West Mediterranean, to persist, while East Mediterranean routes remain somewhat more accessible through feeder line offerings.

• In a notice published on August 19, the Bureau of Industry and Security (BIS) announced the addition of 407 new HTSUS subheadings to the list of items affected by Section 232 tariffs on steel and aluminum. These products became subject to a 50% tariff starting at 12:01 am EDT on August 18 for goods entering the US or being withdrawn from warehouses for consumption. The tariffs apply only to the steel or aluminum portions of the products, while other materials are subject to reciprocal tariffs that do not overlap with Section 232 duties. Additional tariffs may also apply depending on the product.
• In the August 13, 2025 edition of the Customs Bulletin and Decisions, US Customs and Border Protection (CBP) proposed a change in how certain automotive components are classified for tariff purposes. Specifically, metal and rubber air springs and suspension bushings would be reclassified as automotive or trailer parts under HTSUS codes 8708.80.65, 8708.99.55 (2.5% duty), or 8716.90.50 (3.1% duty). These items were previously classified under rubber or machinery part categories, some of which were duty-free or carried higher tariffs. CBP is accepting public comments on this proposal until September 13.
• The US International Trade Commission (ITC) has opened an investigation into updates to the Harmonized Tariff Schedule of the United States (HTSUS) to align with upcoming global Harmonized System (HS) changes. Adjustments must remain duty-neutral. The World Customs Organization (WCO), which manages the HS, has conducted six major reviews since 1988 to reflect technological and trade shifts. The next round of updates is expected in January 2026, with implementation planned for January 1, 2028.