Freight and Logistics News and Market Update

Air

• Tariff uncertainty and the removal of the de minimis exemption have caused air cargo capacity to shift out of China and Hong Kong. De minimis shipments accounted for around 50% of outbound volume, and carriers are rerouting capacity through Vietnam, Thailand, other Southeast Asian hubs and India. They are repositioning to key transpacific lanes to the US and Canada in response to manufacturer relocation.
• Air cargo markets remained volatile in April and May amid geopolitical tension and shifting regulations. May saw 4% month-over-month demand growth following declines tied to tariff uncertainty and the end of US de minimis exemptions. Capacity on APAC–US routes is recovering as temporary trade deals stabilize the market. Rates briefly dipped in early May but have since begun rising. Carriers expect continued growth in volume and pricing through late 2025 as long-term trade agreements take hold.

Ocean

• APM Terminals has reduced its New Jersey rail backlog tied to tariff frontloading and the Gemini Cooperation launch, improving dwell times. East Coast ports expect a summer volume increase from US tariff deadlines, though limited China exposure may lessen the impact. Equipment shortages and container imbalances remain concerns, but ports and railroads say they’re prepared.
• With a new wave of China imports expected, major US chassis providers—TRAC, DCLI and FlexiVan—are reactivating tens of thousands of idle units for redeployment to inland hubs. The effort focuses on safety checks and collaboration with railroads and carriers to avoid a repeat of pandemic-era shortages. Private fleets and tools like the FLOW initiative are improving forecasting and boosting supply chain resiliency.
• Maritime employers and the longshore foremen’s union at the Port of Vancouver have ratified a four-year contract, ensuring labor stability through March 2027. The agreement, retroactive to April 2023, covers 700 foremen in Vancouver and Prince Rupert and avoids binding arbitration. It follows last year’s illegal strike over automation and subsequent legal disputes.

Air

• Amazon Air Cargo has partnered with Avianca Cargo to launch a new daily freighter service between Bogotá and Miami. The move marks Amazon’s first dedicated cargo route into South America and complements its existing international network.
• Azul Airlines has resumed flights between Campinas and Porto, Portugal, operating three times a week with Airbus A330-900neos. Porto is the airline’s second Portuguese destination alongside Lisbon.
• JetSmart is boosting flight frequencies between Chile and Brazil to 44 weekly departures in July, citing strong travel demand. The carrier will increase service to São Paulo, Rio de Janeiro and Foz do Iguaçu, enhancing connectivity between the two countries.

Air

• Asia-Pacific carriers saw 10% year-over-year growth in April 2025, leading a global air cargo recovery, according to IATA. The rebound is supported by strong intra-regional trade, seasonal volume and falling jet fuel costs. Europe-Asia lanes extended their 26-month expansion streak, and global demand rose 5.8%, though IATA warns of ongoing trade risks.
• With rising global trade disruptions and new tariffs, more businesses are turning to Singapore for logistics stability. PSA and Changi Airport have seen cargo volume increases, driven by Singapore’s strategic location, strong transshipment capabilities and continued infrastructure investments.

Ocean

• Port congestion is escalating across Asia and Europe as shifting US tariffs disrupt trade lanes and overwhelm infrastructure. A temporary 90-day tariff pause spurred a surge in exports to the US, backing up ports like Singapore, Shanghai and Shenzhen. Despite the delays, China’s port volumes remain strong, highlighting its export resilience.
• Trans-Pacific spot rates are climbing fast as a wave of US imports from Asia arrives during the 90-day tariff pause. Carriers are raising rates ahead of a short, front-loaded peak season expected to ease by July as capacity expands. Forwarders report record bookings and Southern California ports are preparing for volume surges.
• Singapore and Shanghai are experiencing port congestion as US-bound exports surge during the 90-day tariff pause, with vessels delayed up to five days and transshipment cargo in Singapore waiting up to two weeks. Disruptions across Asia are spreading to Malaysia, South Asia and North Asia, prompting schedule changes from carriers. US West Coast ports expect rising cargo volumes, but inland logistics may face strain as freight flows intensify.

Ground

• From January to May 2025, Horgos Port in Xinjiang handled over 4,000 China-Europe freight train trips, bringing its total to 46,000 across 87 routes and 18 countries. Together with Alashankou, the two ports account for more than half of China's train volume to Europe. Cargo throughput has sustained double-digit growth for three consecutive years.

Air

• At the IATA annual meeting in New Delhi, airline leaders warned that rising trade barriers, including US tariffs, and aircraft delivery delays are curbing industry growth. IATA cut its 2025 profit forecast by $3 billion due to weaker consumer confidence and reduced aircraft deliveries, which are down 26% amid production issues at Airbus and Boeing. While legal action is being considered, airlines emphasized the need for collaboration with manufacturers. IATA also urged increased production of sustainable aviation fuel to help meet emissions targets.

Ocean

• Container shipping rates surged after the May 12 US–China tariff pause, with Drewry’s World Container Index up 41 percent week over week to $3,527 per 40-foot container. Rates from Shanghai to Los Angeles rose 57 percent to $5,876 amid renewed trade activity. However, analysts expect the momentum to ease, with softening spot rate quotes for late June and weaker demand projected for the second half of 2025. Ongoing legal uncertainty and potential new port fees could further disrupt pricing stability.

Ground

• The EU faces mounting criticism over bureaucratic delays in cross-border rail logistics, with NATO warning that military equipment can take up to 45 days to travel across Europe. While the European Commission has acknowledged the issue, calls are growing for reforms to simplify regulations, modernize infrastructure and implement digital solutions that could reduce delays and strengthen strategic mobility.

Air

• Etihad Cargo has partnered with Tag-N-Trac to launch SmartTrack, the first real-time smart tracking solution in the airfreight industry. SmartTrack uses cellular GPS Bluetooth and Wi-Fi-enabled labels to monitor location temperature humidity shock tilt and light exposure. Optimized for temperature sensitive and high value shipments including pharmaceuticals and electronics, it integrates into Etihad’s digital platform and mobile app from October 2025. A central control tower provides 24/7 oversight and proactive monitoring for full shipment transparency.
• Qatar Airways Cargo, IAG Cargo and MASkargo will launch a Global Cargo Joint Business in late 2025, pending regulatory clearance. The alliance will integrate networks across six regions and streamline bookings via a unified digital platform. It will focus on joint route planning, operational efficiency and enhanced connectivity. Separately, the carriers will provide 1,000 MT of cargo space for humanitarian relief through a shared aid initiative.

Ocean

• Saudi Arabia’s Mawani has announced that Sea Lead’s new 5CX shipping service will call at Jeddah Islamic Port, expanding its connectivity with 10 ports in Asia, Africa and Europe. With a capacity of 1,500 TEUs, 5CX links the Kingdom to ports in China, Turkey, Egypt and Malaysia. The move supports Saudi Arabia’s National Transport and Logistics Strategy to boost trade and position the country as a global logistics hub.

• The US DC District Court ruled that the president lacks authority under IEEPA to impose tariffs, siding with two importers who argued the law doesn’t mention tariffs and wasn’t intended to grant tax powers reserved for Congress. A preliminary injunction was issued to stop the tariffs for those importers, though it was paused for 14 days. The decision is now on hold pending appeal.
• The European Commission launched a new tool on June 4 to monitor potential trade diversion into the EU. Using customs data starting January 1, 2025, the system detects abnormal import surges and supports faster response. EU manufacturers, member states and industry groups are invited to review findings and share insights. The initiative builds on earlier monitoring efforts and will be updated regularly online.
• US President Trump has doubled Section 232 tariffs on steel and aluminum imports from 25% to 50%, effective June 4. The increase applies only to metal content under HTSUS Chapters 73 and 76. The UK is temporarily exempt, but that may change by July 9. USMCA auto parts are excluded, and Russian aluminum still faces a 200% duty. Stacking multiple tariffs is now prohibited.