Freight and Logistics News and Market Update

Air

• The United States signed new trade agreements with Vietnam, Thailand, Malaysia and Cambodia as the China trade deadline nears. Talks with China are progressing, though no final deal has been reached. The new agreements set clearer tariff rules, keeping rates on Vietnamese goods at 20% and on Thai goods at 19%, while Malaysia and Cambodia adopted reciprocal caps at 19%. Thailand will lift tariffs on 99% of US goods, and all four countries accepted US standards on digital trade, export controls and product safety. China has also agreed in principle to delay export controls on critical minerals and expand access for US agricultural exports, signaling progress toward avoiding 100% tariffs on November 1.
• The transpacific air cargo market is expected to remain soft in 2025 as US tariffs and the end of duty-free imports on low-value goods limit demand. Even so, shipments of perishables and hyperscaler semiconductors are growing, supported by global investment in AI infrastructure. Forwarders are adding charter flights from hubs such as Hanoi to handle more high-tech and temperature-sensitive cargo. Air volumes continue shifting from China to markets like Vietnam, Thailand and India. With no pre-Golden Week surge and lower ocean freight rates, overall activity has eased, though specialized sectors remain stable.

Ocean

• Chinese carriers Cosco and OOCL incurred just over $42 million in new US port fees during the first week of enforcement. The charges, imposed by the US Trade Representative as part of an investigation into China’s maritime practices, target Chinese-operated and Chinese-built vessels and could reach $2 billion annually if maintained. A few other carriers, including Zim, also faced smaller fees for operating Chinese-built ships.
• Mediterranean Shipping Company (MSC) has launched a direct service between the United States and West and South Africa after Maersk exited their joint route. The service uses MSC’s hubs in Freeport, Bahamas, San Pedro, Ivory Coast and Lome, Togo to improve connectivity and reduce transit times. By combining both African regions in one rotation, MSC is expanding its network and strengthening its position in north–south trade lanes.
• Nominees to the Federal Maritime Commission (FMC) said they will work to ensure fair competition for US shippers through stronger oversight of carrier alliances and market practices. They noted that open markets encourage private investment and help ease supply chain congestion. Stephen Carmel, nominated to lead the US Maritime Administration (Marad), urged greater federal investment to modernize ports and rebuild the nation’s shipbuilding and merchant marine industries, warning that the US risks falling further behind China without stronger support.
• US soybean exporters are hopeful that renewed trade talks with China will reopen their largest market after shipments dropped 89% under tariffs. At the same time, competition from Argentina—helped by suspended export taxes and a US-backed plan to stabilize its currency—is adding pressure on US farmers. Containerized soybean exports to China remain low, though a potential trade thaw could revive demand. With no new sales reported since early September, US growers face a challenging export season despite cautious optimism for renewed Chinese buying.
• US imports from China have fallen about 15%, equal to roughly 875,000 fewer containers, yet global container trade continues to grow at a steady 6%. Production is shifting toward countries such as Vietnam, India and Thailand, with Vietnam’s exports to the United States up nearly 26% over the same period. Ocean carriers remain committed to the US market but are expanding service on faster-growing routes in Latin America, the Middle East and Southeast Asia. Despite these shifts, China’s factories continue to operate at high capacity, redirecting goods to Europe and Mexico.

Air

• Xeneta forecasts that air freight rates will decline in 2026 as capacity growth outpaces demand, allowing shippers to secure longer-term contracts at lower prices. Forwarders are expected to compete for market share, adding pressure on rates. Six key factors are shaping air cargo demand in 2025: supply chain disruptions, the end of US de minimis exemptions, China + X manufacturing growth, US import tariffs, shifting consumer behavior and rising AI-related investments.
• LATAM Cargo has introduced a new weekly freighter service between Brussels and São José dos Campos, Brazil, eliminating the need for cargo transfers through other Brazilian airports. The direct connection reduces transit time and logistics costs while supporting LATAM’s broader expansion plan, which adds 15 weekly frequencies between Europe and South America. The new route, operated by a Boeing 767 freighter, is expected to move about 50 tons of industrial products, auto parts and consumer goods each week to one of Brazil’s key industrial regions.

Ocean

• The World Bank and S&P Global Market Intelligence ranked Ecuador’s Port of Posorja among the world’s top-performing container terminals, naming it the most efficient port in Latin America and the Caribbean. Operated under a public-private partnership, the port rose from 37th to 21st globally between 2020 and 2024, reflecting growing regional investment in automation and digital infrastructure. These advancements highlight how modernization across Latin American ports continues to strengthen connectivity and trade efficiency throughout the region.

Air

• Singapore Changi Airport handled 531,000 tons of air freight in Q3 2025, a 3.7% year-over-year increase driven by a 10% rise in imports and expanded regional freighter connectivity. New routes from JD Airlines, Hainan Airlines and Loong Air strengthened trade links with China, while passenger traffic rose 3.1% to 17.3 million. Changi now connects Singapore to over 160 cities in 50 countries through approximately 7,000 weekly flights operated by nearly 100 airlines.
• Global air cargo volumes increased 6% week-over-week in mid-October, lifted by a 14% rebound from Asia Pacific following regional holidays. Shipments from China and South Korea rose 24% and 96%, respectively, while China–US spot rates climbed 19% to $4.90 per kilogram, the highest level since April. India–US volumes also grew 13% ahead of Diwali, reflecting a volatile but improving trend in global air freight demand.

Ocean

• Eastbound trans-Pacific container rates climbed in mid-October, with Asia–US West Coast prices up 18% to $1,687 per forty-foot equivalent unit and East Coast rates rising 2% to $3,071. The rebound was fueled by general rate increases and reduced vessel capacity as carriers adjusted networks in response to new tariffs and port surcharges. On Asia–Europe routes, rates to North Europe increased 13% to $1,975 per FEU, while congestion in the Mediterranean added modest upward pressure. Analysts remain cautious, noting that rate gains may be difficult to sustain through the current low-demand period.

Air

• Airbus expects the global freighter fleet to grow 45% by 2044, reaching about 3,420 aircraft. Most new deliveries will go to North America and Asia Pacific, driven by rising trade demand. The expansion is expected to boost air cargo capacity and reliability in Europe, supporting eCommerce, high-value goods and overall supply chain resilience.
• Air cargo volumes from Asia Pacific to the United States continue to fall as eCommerce demand shifts in response to tariff changes and the end of de minimis trade. The latest data shows a 9% weekly drop in APAC–US traffic, including a 13% decline on China–US lanes. Much of this volume has shifted toward Europe, with India–Europe traffic up 6% week-over-week and Chinese exports to Europe rising 60% year-over-year in September.

Ocean

• Drewry’s World Container Index (WCI) rose 3% to $1,746 per 40-foot container, marking a second straight week of gains after a 17-week decline. On the Asia–Europe trade lane, spot rates from Shanghai to Rotterdam climbed 4% to $1,736 per container. Carriers are expected to pursue further rate increases in early November ahead of annual contract negotiations.
• Spot rates from Asia to Europe remain below long-term contract levels despite major capacity cuts and rate hikes by carriers. Oversupply and weak demand continue to pressure prices, with spot rates averaging $1,978 per FEU compared with $2,168 for long-term contracts. Analysts say shippers now have leverage to delay new agreements as carriers struggle to lift rates.
• A new OceanScore report found that shippers’ carbon exposure on intra-European routes depends largely on feeder carrier efficiency. Emissions intensity can vary up to tenfold between operators. As EU decarbonization rules tighten, inconsistent carriers could raise costs and reporting risks for cargo owners.

Air

• Fast Logistics launched a dedicated Boeing 777 Freighter service between Liege and Sharjah on October 19, 2025. The route strengthens air cargo connectivity between Europe and the Middle East, supporting high-value and time-sensitive shipments. With its high payload capacity, the service is expected to enhance reliability and efficiency across regional supply chains.
• Emirates SkyCargo announced plans to expand its fleet and network with 10 new Boeing 777 Freighters and additional wide-body aircraft over the next 12 months. The expansion will increase capacity, open new destinations, and strengthen existing high-demand routes. The move supports Emirates’ strategy to enhance air cargo connectivity across key markets in Asia, the Middle East, Europe and the Americas.

Ocean

• DP World launched a new shipping route operating every nine days between Jebel Ali in the UAE and Berbera in Somaliland. The service strengthens trade between the Gulf and East Africa, with scheduled stops at Aden and Djibouti improving access across the Horn of Africa. From Berbera, cargo can move efficiently to inland markets such as Ethiopia, offering a faster alternative to routes through Djibouti. Berbera’s upgraded facilities, including a 1,050-metre quay and modern container terminal, support growing regional trade and reinforce its role as a key logistics hub.
• S J Logistics (India) launched its first vessel charter under the new Suez Express Service, expanding direct trade between the Gulf, India, Africa and the Red Sea. Operated by its Dubai-based subsidiary, the route links Jebel Ali, Kandla, Jeddah and Alexandria, offering faster and more cost-effective cargo movement while advancing the company’s goal of becoming a fully integrated logistics provider.
• Spot rates on the India–US trade continue to decline, with West India–US East Coast prices around $1,550 per FEU as bookings weaken. The 50% US tariff on Indian imports, introduced in late August, has reduced container volumes by 30–35%, especially in ready-made garment shipments. Carriers are canceling sailings to balance capacity while shippers await possible tariff relief through a new trade agreement.

• Starting November 1, the US will impose Section 232 tariffs on imports of medium and heavy-duty trucks, parts and buses. Trucks and key components such as engines, transmissions, tires and chassis will face a 25% tariff, while buses will be subject to 10%. Vehicles qualifying under USMCA will only be taxed on non-US content. A 3.75% tariff offset applies to US-assembled trucks through 2030, with similar benefits for auto manufacturers. Imports from Canada, Mexico, Brazil and India are exempt, and the Department of Commerce may reduce steel and aluminum tariffs by up to 50% if materials meet USMCA origin rules and are processed in Canada or Mexico.
• Importers that paid tariffs under the International Emergency Economic Powers Act (IEEPA) should act quickly to preserve refund rights as lawsuits challenge their legality. If courts overturn the tariffs, refunds will likely only go to those who filed timely protests before liquidation becomes final. Key steps: review ACE data, monitor liquidation dates (especially early 2025 entries), request extensions, file protests within 180 days, seek stays, pursue denied protests in the Court of International Trade and document claims. Extra measures may apply for goods in Foreign Trade Zones under privileged foreign status.
• The US Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) lifted import restrictions on poultry and other avian products from zone PCZ-FV6 in British Columbia, Canada, on October 20. The ban, imposed last June after a detection of virulent Newcastle disease, has been removed, though restrictions remain in place for other Canadian zones due to ongoing cases of highly pathogenic avian influenza.