Freight and Logistics News and Market Update

Air

• Despite significant declines in low-value Chinese exports to the US, both countries have shown sustained growth. Chinese eCommerce exports are up 38% over the first half of 2025, while US air imports rose 9.5%. The primary beneficiaries of US Import growth has been the European market (+17.5%) and alternative APAC markets (+9.5%) including Taiwan and Vietnam.

• The US announced new restrictions on Mexican cargo and passenger flights in response to a 2023 decree that forced cargo carriers to move from Mexico City International Airport (MEX) to Felipe Ángeles International Airport (NLU). The shift faced criticism due to limited infrastructure and short notice. While the move was intended to ease congestion and allow for construction at MEX, the US Department of Transportation (DOT) claims no construction has taken place and that the policy has harmed airlines.

Ocean

• Mediterranean Shipping Company (MSC), Yang Ming and Sinokor are spending nearly $4 billion on new container ships to modernize fleets and expand capacity. MSC leads with more than $1.7 billion invested in six 22,000 TEU LNG-powered ships from Chinese yards, raising its orderbook to 135 vessels. Yang Ming ordered seven 15,000-TEU dual-fuel ships for up to $1.5 billion, targeting lower emissions and fleet renewal by 2028–2029. Sinokor added four 13,000-TEU vessels from Hyundai Heavy Industries for $610 million, continuing the strong ordering trend.

• United States drayage providers are under growing strain as rising operating costs and increased competition from digital freight brokers drive rates down. Many traditional firms are losing business to non-asset providers using online platforms, while California’s environmental regulations add further financial pressure. Smaller operators are especially vulnerable, with some shutting down or being acquired as the market continues to consolidate.

• Uncertainty around United States–China tariffs has disrupted typical peak season import patterns, forcing US importers into a wait-and-see approach. A brief cargo surge in May followed a temporary tariff pause, but demand quickly faded as policy ambiguity persisted. Importers are now limiting shipments to essential goods, while carriers struggle to align capacity, leading to short-term rate spikes and supply-demand mismatches.

• The Port of Los Angeles recorded its busiest June on record as importers rushed to bring in goods ahead of upcoming United States tariff hikes on Chinese products. The surge is expected to fade as holiday orders wrap up and new tariffs take effect. Rising costs and shifting trade rules are now pushing companies to reevaluate sourcing and logistics strategies.

Air

• LATAM Airlines will expand international operations from Brazil, increasing flights by approximately 20 percent over the next six months. The growth includes five new international routes and increased frequency on seven existing routes.

• LATAM Cargo has launched a new Bogotá to Los Angeles cargo route, which began operating on July 13. The carrier also increased frequency on its Quito to Los Angeles route earlier this month. The added capacity supports the growing demand for South American flower exports and strengthens year-round shipping options to the West Coast.

Ocean

• In July, the Brazilian government issued a decree to regulate cabotage in an effort to reduce freight costs and environmental impact while boosting growth in the domestic shipping sector. Although cabotage accounts for only 11% of cargo transport in Brazil, the country’s vast coastline and inland waterways offer strong potential for expansion.

Air

• The United States has reached new trade agreements with Vietnam and Indonesia, reducing proposed tariffs from 46% to 20% and from 32% to 19% respectively. However, a 40% duty will now apply to transshipped goods, signaling an effort to limit China's influence in Southeast Asia. While a narrow definition of transshipment could limit the impact, a broader one may disrupt regional economies that rely heavily on Chinese inputs, including Vietnam.

• Asian Pacific airlines saw a 13.9% year-over-year increase in international air cargo demand and a 10.3% rise in freight traffic in May 2024, driven by strong eCommerce growth and maritime disruptions. However, ongoing supply chain issues and rising operating costs, including aircraft delivery delays and inflation, continue to challenge the region’s carriers.

Ocean

• Asia–North Europe ocean freight rates have paused their upward trend, with spot rates softening across key indices. Congestion at North European ports may still push prices higher, but rates on Asia–Mediterranean and transpacific lanes are falling more sharply amid geopolitical uncertainty and volatile demand.

• US ocean container imports from China continued their decline from May, falling 28.3% year over year in June amid tariff hikes on Chinese goods. While total US ocean import volume dipped just 3.5% year over year and shows signs of stabilizing, sourcing is shifting toward Southeast Asian markets. Uncertainty remains as the US–China tariff truce is set to expire in August.

• Carriers are blanking more trans-Pacific sailings in July ahead of the August 12 expiration of the US tariff pause on Chinese goods. About 11% of capacity to the US West Coast is being cut as demand weakens following earlier frontloading. With most tariff-avoidance cargo already shipped, spot rates are falling again despite temporary gains from capacity cuts. Analysts expect soft volumes and weak rates to continue through the end of the year.

Air

• East Midlands Airport in the United Kingdom has expanded its cargo infrastructure by doubling widebody aircraft stands from 2 to 4 on the east apron and from 5 to 8 on the west, increasing total capacity to 12 stands. The upgrade supports projected cargo growth of 54% by 2043. The project involved a technical redesign and close coordination across airfield operations, safety, air traffic control and logistics teams. Future improvements include re-marked aprons, enhanced lighting, GSE parking and more.

Ocean

• Freight rates for shipping Russian Urals crude from Baltic ports to India have dropped to $5–$5.3 million per Aframax voyage, driven by increased tanker availability as Urals prices remain below the $60 cap. However, the European Union is expected to approve a new sanctions package that may lower the cap further, possibly to a floating level around $47 per barrel, which could tighten tanker access and drive rates back up.

• Ocean carriers are blanking around 175,000 TEUs, or 11% of Asia to US West Coast capacity, as demand slows following frontloaded shipments ahead of expected tariff hikes. The cancellations, which include both niche and large-scale services, reflect diminished need with most goods already en route. Spot rates briefly stabilized around $2,500 per forty-foot equivalent unit, but ongoing weak demand suggests they may fall further even if new trade deals are reached.

Air

• Saudia Cargo has launched its new BEYOND campaign to raise global visibility for Saudi exports. The initiative focuses on strengthening the carrier’s network, with targeted growth in markets including the Philippines, Malaysia, Ethiopia, Egypt and Indonesia. Exports from Saudi Arabia rose 14% in 2024, and the carrier has already added a new route to China this year. The campaign is part of a broader expansion strategy that includes partnerships with carriers and countries across Europe, Asia Pacific and beyond.

Ocean

• Hamad Port, in partnership with MSC, has launched the CHINOOK CLANGA shipping service, offering direct weekly sailings to major ports in East Asia and on the West Coast of North America. Mwani Qatar welcomed the MSC CHARLESTON for the inaugural voyage of the new route, which connects Hamad Port with Colombo, Vung Tau, Haiphong, Yantian, Ningbo, Shanghai, Qingdao, Busan, Seattle, Prince Rupert and Vancouver. The service expands Qatar’s global trade links, enhances logistics efficiency and supports foreign trade growth across key economic sectors.

• The US Trade Representative has launched a Section 301 investigation into Brazil’s trade practices, which could lead to new tariffs. The probe focuses on alleged unfair treatment of American companies, especially in digital and tech sectors. Concerns include retaliation against US social media platforms, preferential tariffs for other countries, weak anti-corruption enforcement, inadequate intellectual property protections, higher tariffs on US ethanol and poor enforcement of deforestation laws. A public hearing is set for September 3, with written comments due by August 18. If Brazil’s actions are deemed harmful, the US may impose additional tariffs.

• The US has notified seven additional trading partners that it will impose higher reciprocal tariffs under the International Emergency Economic Powers Act. These tariffs, originally announced at rates ranging from 10% to 50%, were temporarily suspended but are now set to resume unless trade negotiations improve. Affected countries include the Philippines, Moldova, Iraq, Sri Lanka, Brunei, Algeria and Libya, with some rates adjusted from earlier announcements. Brazil will face a 50% tariff, reportedly tied to ongoing political tensions, despite a US trade surplus. The baseline 10% tariff and China-specific tariffs remain unchanged.

• US President Trump sent a letter to Canadian Prime Minister Mark Carney warning that the US will impose a 35% tariff on Canadian goods. He also threatened higher tariffs on goods transshipped through Canada. The letter cited concerns over fentanyl trafficking and Canada’s non-tariff trade barriers, including a 400% tariff on US dairy products. Trump suggested the US might reconsider the planned tariff hike if Canada cooperates in curbing fentanyl imports.

• US President Trump announced via Truth Social that he sent letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, warning of 30% tariffs on imports from the EU and Mexico. He criticized the slow pace of trade negotiations with both regions. These letters are part of a broader campaign, with multiple countries receiving similar warnings in recent days. US Treasury Secretary Scott Bessent praised the United Kingdom for securing an early trade deal, calling it a model for avoiding tariffs through good-faith negotiations.

• US Customs and Border Protection now requires all imports of FDA-regulated products, regardless of value, to be submitted for FDA review. This ends 30 years of exemptions for low-value shipments such as cosmetics, dinnerware, non-medical radiation-emitting devices, certain foods and biological samples. CBP stated that advances in technology now allow the FDA to efficiently review electronic entries, improving product safety and compliance. All previous exemptions for low-value FDA-regulated imports have been revoked.

• The United Kingdom has demonstrated world-class middle-mile cargo drone operations through proven missions by operators like Windracers, delivering supplies to remote communities such as the Orkney Islands and Ukraine. With the global middle-mile logistics market valued at approximately £213 billion and growing at 5–6% per year, the UK has a clear opportunity to scale. But without faster policy action, regulatory delays may hinder progress. Greater collaboration between government and experienced operators could position the UK as a global leader in autonomous air cargo.