Freight and Logistics News and Market Update

North America

Air

• The European Commission and the United States are jointly proposing the removal of the de minimis exemption, which currently allows low-value parcels to enter their markets without customs duties. This initiative aims to curb the import of unsafe and counterfeit products, predominantly originating from China. However, eliminating this exemption may strain customs operations and impact air cargo logistics. In response, eCommerce platforms might shift towards ocean freight and establish inventories within the US to comply with the impending regulatory changes.
• In 2024, Air Canada reported a 7% year-over-year increase in cargo operating revenues, totaling C$991 million. This growth was largely attributed to higher volumes and yields in the Pacific and Americas markets. The fourth quarter alone saw a 20% rise in cargo revenues compared to the same period the previous year, driven by robust demand and improved yields. However, in response to evolving market conditions, Air Canada revised its freighter fleet strategy, removing two Boeing 767-300 freighters from its plans and suspending additional freighter acquisitions until after 2026.

Ocean

• In January, rail container dwell times at the Los Angeles and Long Beach ports remained elevated due to increased pre-Lunar New Year imports and frontloading. Dwell times varied among terminals, with Long Beach recording an average of 8.6 days. A decline in imports is anticipated in late February, which will aid in enhancing cargo fluidity.
• Evergreen Marine has committed up to $3.2 billion for 11 new LNG dual-fuel 24,000 TEU container ships, commissioning six vessels from South Korea's Hanwha Ocean and five from China's Guangzhou Shipyard International. This strategic move, following a 2023 order for methanol dual-fuel vessels, reflects the industry's growing preference for LNG over methanol due to concerns about methanol supply and infrastructure. However, adopting alternative fuels like LNG presents challenges, including the need for specialized infrastructure and considerations about their long-term sustainability.
• Vehicle carrier operators, such as Höegh Autoliners and Wallenius Wilhelmsen, project a robust performance in 2025, bolstered by long-term contracts and strong shipment volumes. Höegh Autoliners has reported its largest backlog to date, reflecting sustained demand. Although the first half of the year experienced a dip in heavy equipment shipments, the industry remains optimistic, particularly with the increase in vehicle exports from China. Furthermore, potential tariffs on vehicle imports from countries like Mexico and Canada are anticipated to have a minimal impact on overall trade dynamics.

Ground

• US carriers report that shippers are making a concerted effort to secure lower contract rates ahead of a potential market shift, with indicators suggesting the prolonged freight recession may be nearing its end. Despite these signs, many stakeholders remain cautious, as previous predictions of a market rebound have not come to fruition. Intermodal rates are projected to follow truckload pricing trends, with companies emphasizing the importance of pricing discipline to maintain consistent revenue growth.
• In early 2025, the less-than-truckload (LTL) freight sector experienced stagnant volumes, attributed to weak demand and severe winter weather conditions. Despite this, optimism is building for a potential recovery in the spring. January saw a 5.8% surge in the LTL producer price index, indicating rising rates, although actual freight volumes remain low, often trailing behind broader economic indicators. Industry leaders, including Old Dominion and XPO, express confidence in future demand driven by industrial sectors, even as uncertainties related to potential tariffs and macroeconomic factors persist.

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Latin America

Air

• In 2024, LATAM Cargo transported over 126,000 tons of domestic freight across 46 destinations in Brazil. Of this total, 59% of shipments passed through São Paulo/Guarulhos (32%), Manaus (17%) and Brasília (10%). The main categories of domestic freight included general cargo, pharmaceuticals, electronics and perishables. Internationally, LATAM handled more than 207,000 tons of cargo in and out of Brazil, with 41% designated for export and 59% for import. Key exports consisted of general cargo, fruits, eggs and seafood, while imports primarily included general cargo, pharmaceuticals and fruits.
• Paranair launched a new route between Asunción and Salta, operating twice weekly on Wednesdays and Saturdays. The inaugural flight was marked by a ceremony in Asunción and a water salute in Salta. The route uses Bombardier CRJ-200ER aircraft with a 50-passenger capacity.

Ocean

• Colombia and China have inaugurated a new maritime route connecting the Port of Buenaventura to Shanghai, enhancing bilateral trade ties. The route includes a stop at Peru's Chancay port, a strategic hub constructed with Chinese investment. This development aligns with Colombia's intention to join China's Belt and Road Initiative, aiming to boost economic collaboration and diversify trade partnerships.
• The port of Cartagena is progressing toward its goals of increasing fruit and vegetable exports, having transported over 104,000 tons in 2024.

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Asia-Pacific

Ocean

• In the eastbound trans-Pacific trade, smaller non-vessel-operating common carriers (NVOs) are increasingly consolidating cargo or partnering with aggregators to secure vessel capacity, as ocean carriers prioritize larger clients. This trend has resulted in a decline in direct NVO bookings, prompting smaller forwarders to adapt by forming alliances and exploring niche markets. Despite these challenges, the dynamic global shipping environment may offer new opportunities for agile and innovative smaller forwarders.
• In 2024, Cosco Shipping and its subsidiary OOCL led U.S. imports from Asia, transporting 3.06 million TEUs, a 20.5% increase from the previous year. CMA CGM maintained its position as the second-largest carrier, while MSC climbed to fourth place with a 24% rise in imports. The top five carriers collectively accounted for 64% of the market share, driven by increased demand due to tariffs and potential labor issues.

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Europe

Air

• UPS has introduced a new flight route between Paris Charles de Gaulle Airport (CDG) and Hong Kong International Airport (HKG), operating five times weekly to accommodate the rising export demands of French enterprises. This strategic initiative focuses on sectors such as high fashion, food and beverage, aerospace and the expanding dental and pharmaceutical markets in Hong Kong and Asia. The service aims to meet the increasing need for specialized pharmaceutical treatments and supports French dental firms in leveraging Hong Kong's advanced dental manufacturing facilities.
• In January, total cargo volumes at Brussels Airport increased by 8% year-on-year, reaching 59,385 tons, with air cargo volumes rising by 11%. Asia continues to be the leading export region, followed by Africa and North America. Import volumes were highest from Asia, Africa and North America. The airport benefited from overall market growth and the addition of four new airlines.

Ocean

• European ports are experiencing significant delays due to record container volumes from China, severe winter weather and labor disruptions. The increase in imports and storms that affected vessel movement have intensified congestion at major ports, including Hamburg, Antwerp and Rotterdam. Ongoing strikes in Rotterdam and France further worsen delays, leading to potential cargo diversions to other European ports.

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India, the Middle East and Africa

Air

• In anticipation of Valentine's Day, Qatar Airways Cargo transported a total of 2,800 tonnes of flowers, equivalent to 42 million fresh-cut red roses, from Kenya and South America. From Nairobi, the carrier moved nearly 1,600 tonnes of red roses through both scheduled flights and nine additional Boeing 777 charters. An additional 1,200 tonnes were transported from Bogotá and Quito via ten extra charters, reaching key markets including the Netherlands, the Middle East, Asia and Australia.
• Astral Aviation, a Kenya-based cargo airline, has celebrated its 25th anniversary, marking its growth in perishable exports to Europe and the UAE and humanitarian aid deliveries to South Sudan. Its expansion is supported by Jomo Kenyatta International Airport’s upgraded infrastructure, enabling efficient cargo processing.

Ocean

• In 2024, DP World achieved a record throughput of 88.3 million TEUs, reflecting an 8.3% increase from the previous year, despite facing global trade uncertainties and disruptions in the Red Sea. Over the past decade, the company has invested approximately USD 11 billion in its ports and logistics network to bolster end-to-end supply chain capabilities. The flagship Jebel Ali port in Dubai demonstrated resilience with a 7% year-on-year growth in container volumes, contributing significantly to the company's robust performance.
• In the 2023-24 fiscal year, India's major ports collectively handled 820 million tonnes of cargo, representing approximately 50% of their total capacity of 1,630 million tonnes per annum. This achievement results from ongoing modernization efforts, including a 49% reduction in average turnaround time and a 52% increase in average output per ship berth day since 2013-14. The development of strategic infrastructure, such as Mumbai's Vadhavan Port, is set to further enhance efficiency in accommodating large cargo vessels.
• The Jebel Ali port in the UAE has welcomed its first vessel under the new Gemini Cooperation alliance between Maersk and Hapag-Lloyd. The vessel, MV Houston Express, is the first to arrive at the port with a capacity of 15,000 TEUs and will be part of an Indian Ocean service connecting the Indian Subcontinent, the Middle East and Southern Europe. The Gemini cooperation agreement aims.

Ground

• Sokhna Logistics Park, developed by Dubai-based DP World, has reached 65% completion in the first construction phase. This new logistics park, valued at $80 million, is situated within the Suez Canal Economic Zone and aims to position Egypt as a major logistics player in the region with advanced multimodal supply chain capabilities. It is strategically located 10 kilometers from key industrial zones in Greater Cairo, offering seamless connectivity and optimized freight movement. The project is expected to be fully completed by June 2025.
• DP World has secured a contract to operate the Al Madouneh Customs Center in Amman, Jordan. To enhance trade operations, DP World will utilize advanced technology systems for quicker customs processing, efficient tracking and timely audits. The new center covers 1.3 million square meters and features advanced technologies such as IoT-based logistics optimization and AI-driven intelligent customs operations to boost operational efficiency.
• Saudi Arabia’s National Company for Unified Procurement of Medicines, Devices and Medical Supplies (NUPCO) has signed six memorandums of understanding (MoUs) with leading logistics companies to enhance and develop the healthcare supply chain. This agreement also improves logistics infrastructure and last-mile delivery services, emphasizing the timely distribution of pharmaceutical products and medical devices throughout Saudi Arabia.

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Customs Brokerage

• US President Trump has set the stage for potential reciprocal tariffs on imports from specific countries, depending on how they tax or tariff US goods. A government-led investigation, starting no earlier than April 1, will analyze how unbalanced trade policies affect American businesses, workers and consumers. The review will cover tariffs, unfair taxation, non-tariff barriers, subsidies and other trade restrictions that put the US at a disadvantage. The results will guide the creation of tariffs matching those imposed by trading partners, but there is no clear timeline for when these might take effect.
• In the Feb. 12, 2025 Customs Bulletin, US Customs and Border Protection (CBP) announced the reclassification of training pants as sanitary pads under HTSUS 9619 rather than as apparel under HTSUS 6108 or HTSUS 6111. The change, effective for goods entered or withdrawn after April 12, 2025, means training pants will now be subject to duties of 10.8%, 14.9% or 16%, depending on the specific classification.

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