What’s Going On?
Global manufacturing activity remains resilient, supported by strong semiconductor, AI, e-commerce, and high-tech demand across Asia. However, ongoing Middle East tensions, jet fuel shortages, and carrier rerouting continue driving volatility across global logistics markets, keeping both air and ocean capacity tight.
Air Outlook
- Jet fuel shortages continue tightening effective airfreight capacity as airlines reduce payloads and optimize aircraft deployment.
- Thailand airport congestion is worsening, with cargo pickup delays exceeding 7 days in some cases, increasing demand for cross-border trucking solutions into Thailand.
- China-US airfreight flows are gradually normalizing as trade policies stabilize, though strong AI and semiconductor demand continues keeping Asia outbound capacity tight.
- Taiwan, South Korea, Malaysia, Thailand, and Singapore remain among the tightest airfreight markets across Asia Pacific, especially on US and Europe lanes.
- Airlines continue adjusting operations around Middle East airspace disruptions, resulting in longer transit times and elevated airfreight rates to Europe and the US.
Ocean Freight Outlook
- Frontloading activities driven by rising fuel costs and geopolitical uncertainty continue tightening vessel utilization and supporting higher ocean freight rates
- Carriers are increasing bunker surcharge adjustments from quarterly to monthly due to fuel volatility
- Blank sailings and rerouting continue tightening capacity across Asia-US and Europe trades, particularly from China.
- Congestion remains a major challenge across Southeast Asia and India, especially at Nhava Sheva Port in India and Suvarnabhumi Airport in Thailand, impacting schedule reliability and cargo movement efficiency.
- Europe ocean freight market remains volatile with softer demand, while geopolitical-related surcharges and rerouting continue creating cost pressure.
We’ve seen similar frontloading situations before, and it doesn’t necessarily mean demand is truly recovering. A lot of cargo is simply moving earlier to avoid rising fuel-related costs, which could lead to a softer peak season later in the year.
Trade & Supply Chain Watch
- Middle East energy disruptions are beginning to impact Asian manufacturing, particularly petrochemical feedstocks used in plastics and electronics production.
- Energy cargo flows through the Strait of Hormuz are slowly resuming, though fuel price volatility and shipping risks remain elevated.
- Growing India-US cooperation on trade and energy security may accelerate long-term supply chain diversification and strengthen India’s role as an alternative manufacturing hub.
Download Report
If you would like to download the full PDF report, just complete the form.
While some direct China-US airfreight volumes are returning as trade policies stabilize, strong AI and semiconductor demand continues to keep capacity extremely tight across Asia.
VP, Global Sales and Marketing, Dimerco Express Group