Freight and Logistics News and Market Update

North America

Air

• Following the Supreme Court’s February 20 ruling, the US has replaced the contested IEEPA tariffs with a temporary 10% global tariff under Section 122, effective February 24, as confirmed by the Office of the US Trade Representative. The Office has indicated that the rate may be increased to 15% or more for certain countries based on specific trade and economic conditions. In parallel, a review of existing trade authorities, including Sections 301, 338 and 232, is underway to address persistent trade imbalances while honoring recently concluded trade agreements.
• The US Department of Commerce reported the national trade deficit widened to $70.3 billion in December, bringing the full year 2025 total to $901.5 billion, the highest level recorded since 1960. The continued imbalance highlights sustained import demand relative to exports, which may influence freight volumes and trade flows across US transportation networks.
• For additional context on recent tariff changes and steps importers can take now, review the latest tariff updates and potential refund preparation.
• Airspace closures in the Gulf have grounded flights through Dubai, interrupting shipments of gold and silver that normally move through the hub, which handled about 20% of global gold flows last year. Precious metals typically transported in passenger aircraft bellyhold are now stranded at airports as airlines suspend flights and logistics providers halt exports. The disruption is forcing traders and forwarders to seek alternative routing options while tightening available air freight capacity on key Asia trade lanes.

Ocean

• Major container lines are suspending Red Sea transits and rerouting vessels around southern Africa following renewed military activity and rising security risks across the Persian Gulf region. Carriers have introduced emergency surcharges, and marine insurance rates may increase 25% to 50%, raising transportation costs and extending transit times on affected trade lanes.
• Economic uncertainty linked to tensions near the Strait of Hormuz could increase oil prices and place upward pressure on inflation, according to comments at TPM26. Analysts project global container demand growth of about 1.7% this year, though sustained energy price increases could weigh on economic activity and shipping demand.
• CMA CGM will launch a weekly standalone Japan to Europe container service in April using 14 vessels ranging from 7,000 to 10,000 TEUs with direct calls at major Japanese and Northern European ports. The service restores direct capacity on the trade lane as other carriers shift toward transshipment networks through hubs such as Busan and Qingdao.
• Ocean carriers and US importers are delaying 2026–27 trans-Pacific service contracts as spot rates to the US West Coast have fallen more than 20% since early January. Ample vessel capacity following a muted Lunar New Year period is reducing urgency to lock in rates ahead of contracts beginning May 1, giving shippers greater leverage in current negotiations.

Ground

• The Journal of Commerce Truckload Capacity Index rose to 73.5% in the fourth quarter as large US carriers expanded fleet counts by about 1.5%. Much of the additional equipment is shifting toward dedicated and specialized services rather than one way truckload, signaling cautious capacity expansion as carriers prepare for a potential market recovery.

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Latin America

Air

• Air cargo hubs across Latin America are expanding airport infrastructure and cargo handling capacity as demand grows for eCommerce, perishables and pharmaceutical shipments. With the regional air freight market valued at about $1.04 billion in 2025 and global demand rising 3.4% year-over-year, airports in Mexico, Colombia, Panama, Peru and Brazil are increasing investment to support rising trade volumes.
• Miami International Airport handled nearly 3.5 million tons of air freight in 2025, a 13.6% year-over-year increase and the airport’s sixth consecutive annual cargo record. International shipments account for 84% of total volume, led by perishables imports from Latin America and exports of high value manufactured goods.
• Tariff policy developments and shifting trade patterns may continue to influence cargo flows across Latin American gateways. Businesses navigating these changes can catch up on the latest tariff updates while official procedures continue to develop.
• Brazil welcomed a decision allowing aircraft exports to the US to enter duty-free, removing a previous 10% tariff that affected the country’s aerospace sector. The change improves market access for aircraft shipments and reduces cost pressure on one of Brazil’s highest-value export industries. The adjustment may support continued aerospace trade flows between Brazil and the US.

Ocean

• Recent court decisions have limited Peru’s authority to regulate the Chinese operated Chancay port and voided Panama’s contract with a Hong Kong based operator at two canal connected terminals. The rulings introduce regulatory uncertainty for key regional logistics hubs.
• DP World reported record container volumes in 2025 at terminals in Brazil, the Dominican Republic, Peru and Chile, supported by capacity expansions, larger vessel calls and stronger Asia connectivity. Callao surpassed 2 million TEUs for the first time, while Santos and Caucedo also reached new highs for a second consecutive year. The results reflect expanded port capacity and increased trade flows across key Latin American gateways.

Asia-Pacific

Air

• Global air freight volumes rose 7% year-over-year in January, largely reflecting the earlier timing of Lunar New Year, according to Xeneta. Despite the volume increase, average global spot rates declined 1% year-over-year to $2.56 per kilogram, with sharper month-over-month drops on Asia–North America lanes and continued weakness in China–US eCommerce exports. The data indicates January’s strength was primarily calendar-driven rather than evidence of sustained demand improvement.
• Air freight demand in Asia Pacific rose 5.9% year-over-year in January as manufacturers accelerated shipments ahead of Lunar New Year factory closures. Capacity increased 4.9%, pushing the regional freight load factor to 56.1%.
• Ongoing tariff developments and trade policy changes may continue to influence export demand and freight flows across Asia-linked trade lanes.

Ocean

• Blank sailings on major east west container trades reached 136 in February, a 122% increase month-over-month, as carriers reduced capacity around the Lunar New Year slowdown. Congestion in Northern Europe and declining schedule reliability are also limiting vessel availability.
• Spot container rates from Asia to the US East Coast fell about 12% to roughly $3,000 per forty-foot equivalent unit following the Lunar New Year slowdown. Rates on Asia Europe and Mediterranean routes also declined week-over-week. The pullback reflects softer seasonal demand across major east-west trades.
• Recent tariff adjustments affecting imports into the US are influencing sourcing and trade patterns across Asia-Pacific supply chains. Exporters in several Asian markets are reassessing shipment volumes and routing decisions as duties alter cost competitiveness across manufacturing sectors. The policy changes may shift freight demand and cargo flows across major Asia-US trade lanes.

Europe

Air

• Airport closures and airspace restrictions across the Middle East led to thousands of flight cancellations, with major hubs in Dubai, Abu Dhabi and Doha shut or heavily restricted following regional military strikes. Airlines suspended or rerouted services through early March, while extended airspace closures over Iran and neighboring countries disrupted east-west passenger and air freight connections. The shutdown of key transit hubs is constraining global flight networks and adding fuel cost pressure across international routes.
• Air freight capacity on the Asia-Europe corridor has dropped 26% following Middle East airspace closures that are disrupting global flight networks. Data shows significant reductions on routes linking Asia, the Middle East and Europe as carriers suspend or reroute services. The capacity decline is tightening available lift on a key trade lane and reshaping how cargo moves between Asia and Europe.

Ocean

• Maersk and Hapag-Lloyd will reroute selected March sailings on their Middle East-India-Mediterranean and Middle East-India-US East Coast services around the Cape of Good Hope due to operational constraints in the Red Sea region. The temporary diversions affect sailings in the first half of March, while other voyages continue to prioritize the Suez Canal route. The shift signals renewed routing volatility tied to security conditions in the region.
• Maersk and Hapag-Lloyd will adjust five Asia-Europe and Asia-Mediterranean services starting in March and April by adding and removing select port calls and deploying vessels of up to 20,000 TEUs on key Mediterranean routes to increase capacity. Some services will continue routing via the Cape of Good Hope due to constraints in the Red Sea region. The changes expand coverage and capacity while reflecting ongoing network shifts tied to regional security conditions.
• Major container carriers including Mediterranean Shipping Co., Hapag-Lloyd, COSCO and HMM are suspending bookings and halting voyages to Middle East Gulf ports as security risks escalate around the Strait of Hormuz. Vessels already en route are diverting to alternative ports while cargo is being discharged at interim locations, leaving shippers to arrange onward transport and cover additional port charges. The disruption is reducing available capacity in the region and increasing the risk of longer transit times, higher costs, and container backlogs across connected trade lanes.

India, the Middle East and Africa

Air

• Major Middle East carriers suspended cargo flights through early March due to airspace closures, while several international airlines halted or rerouted services across the region. Data shows global air cargo capacity fell 18% week-over-week, with Asia-Middle East-Europe capacity down more than 40% on some routes as carriers redirected aircraft and adjusted networks. The widespread suspensions are reducing available capacity across key trade corridors and increasing operational pressure on both air and ocean freight flows.
• Emirates SkyCargo will launch a new weekly freighter to Mumbai on March 4 and introduce a dedicated Dubai-Ahmedabad service later in March, expanding cargo capacity between India and its global network. The additional aircraft will carry pharmaceuticals, perishables and electronics, complementing existing freighter and passenger bellyhold operations across nine Indian cities. The expansion increases direct air freight capacity to support India’s export flows and trade connectivity.
• Air cargo shipments from Asia to the US and Europe could begin accumulating at airports in China and Southeast Asia as Middle East airspace disruptions remove about 18% of global air freight capacity. The loss of passenger bellyhold and freighter capacity is limiting available lift on major export routes. The imbalance between demand and capacity could create shipment backlogs and extend transit times for cargo moving to Western markets.

Ocean

• Shipping association BIMCO said it is assessing a proposal to provide political risk insurance for vessels operating in the Persian Gulf after regional conflict halted maritime activity in the area. Services through the Strait of Hormuz remain uncertain as security risks rise and insurance premiums increase. The disruption is limiting vessel activity through a key energy and shipping corridor and creating uncertainty for global maritime trade flows.
• At TPM26, the Agriculture Transportation Coalition said tariffs, policy uncertainty and rising ocean surcharges tied to Middle East conflict risk are creating challenges for US agricultural exporters. Industry representatives warned that higher transport costs and unclear tariff policies can make US commodities less competitive in global markets. The uncertainty around trade policy and shipping costs is adding pressure on exporters that rely on stable pricing to secure overseas demand.
• Mediterranean Shipping Co. will cut average vessel sizes on its India-North Europe Himalaya Express and India-Mediterranean IPAK services beginning in March as regional transshipment volumes tighten. Industry sources said HEX capacity will fall from about 14,000 twenty-foot equivalent units to 9,000, while IPAK tonnage will decrease from 9,000 to 8,000 alongside minor rotation changes. The adjustments reflect shifting cargo flows and policy changes affecting transshipment activity at Indian ports, reducing available capacity on these trade lanes.
• Ocean carriers including Maersk, Mediterranean Shipping Co., Hapag-Lloyd and Ocean Network Express have suspended cargo bookings between the Indian Subcontinent and several Middle East markets amid regional conflict. Containers are beginning to accumulate at Indian ports while carriers introduce emergency surcharges and reassess voyages. The disruption is restricting shipments on a major regional trade corridor and increasing the risk of port congestion and longer transit times.
• CMA CGM will reorganize its container network linking India, the Middle East and East Africa beginning in March 2026 to enhance schedule reliability and expand port coverage. The updated KARIBU service will add direct calls at Mundra and Cochin and increase frequency to Mombasa and Dar es Salaam while integrating former SWAHILI routes to strengthen connectivity to Tanzania and Mozambique. The changes aim to improve transit times and vessel utilization across growing India-East Africa trade lanes.

Customs Brokerage

• Collection of duties imposed under the International Emergency Economic Powers Act (IEEPA) has ended following a February 20, 2026 Supreme Court ruling. For entries on or after February 24, 2026, US Customs and Border Protection will deactivate the related HTSUS numbers in the Automated Commercial Environment (ACE). The change applies only to IEEPA duties and does not affect other tariffs, including those under Sections 232 or 301.
• On February 20, 2026, the US Government issued under Section 122 of the Trade Act of 1974 imposed a temporary 10% additional duty on most US imports for 150 days, beginning February 24, 2026. The surcharge applies broadly to goods from all countries unless specifically exempt, with detailed exemptions covering certain in‑transit goods, agricultural and religious products, civil aircraft, selected industrial products, USMCA-qualifying goods, CAFTA‑DR textiles, humanitarian donations and informational materials.
• The US Departments of Agriculture’s Agricultural Marketing Service has withdrawn a direct final rule that would have reduced cotton import assessments by 6.5% starting March 1. The rule was pulled after the agency received significant adverse comments, meaning the current assessment rates will remain in place.
• US Customs and Border Protection has reclassified 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 duty‑free liquid measuring instruments. The change revokes a prior ruling and takes effect for entries made on or after April 19, 2026.

Businesses navigating recent tariff changes can review our recent article on potential duty recovery and catch up on the latest tariff updates while official procedures continue to develop