Major shipping lines have been avoiding Suez Canal transit since late 2023 due to Houthi-led attacks on cargo ships, with a common mitigation tactic being to sail around the Cape of Good Hope instead. The longer sailing distances absorb around 2.5 million TEUs of global container shipping capacity, according to Sand. It also requires importers to provide CBP with volume forecasts and more detailed information on ownership and products. The move comes as brokers and shippers report increasing customs holds on inbound containers, particularly cargo from China and Vietnam. The increase likely reflects tighter trade policy, the end of de minimis, and CBP’s heavier use of AI screening. Because of this, carrier survivability is becoming a growing concern as margins get slimmer and inflation rises, Croke said.
Logistics Director, US FMCG Company
👉 Our mission is to help you reduce costs, minimize risk, and improve supply chain efficiency in a rapidly changing global market. May is a key booking window before peak season surcharges take effect.Shippers should secure space early to avoid cost spikes. We monitor your ocean freight to ensure on-time delivery and provide actionable insights. A dedicated ocean freight specialist will create a strategy for your cargo, including routing and timeline options. Simplifying U.S. Regulatory Compliance As a certified Automated Manifest System (AMS) carrier, we provide timely and accurate transmissions directly to U.S. In addition, as a Customs-Trade Partnership Against Terrorism (C-TPAT) participant, we help you avoid delays on U.S. inbound shipments.
GLOBAL REACH
Demand is particularly robust on China-US lanes, while Asia-Europe air freight rates have softened, reflecting shifting e-commerce focus towards Europe. This has prompted some capacity to divert from the transpacific routes to Asia-Europe, helping to restrain upward rate pressure on the latter. As for the Asia-to-Europe trade route, spot rates also increased this week due to the surcharges, along with capacity cuts announced by carriers in May. Rates from Shanghai to Genoa increased 20 percent to $3,701 per 40-foot container, and those from Shanghai to Rotterdam jumped 11 percent to $2,413 on average.
Iran conflict disrupts ocean, air cargo networks
- A Letter of Credit is a primary means of payment in an international trade transaction.
- These shifts reflect the complex dynamics of supply and demand, especially as carriers adjust their capacity and rates in the face of uneven volume flows.
- Unless there is a significant shakeup in the market, ocean shipping will still face overcapacity, which would release pressure on rates, Chitty said, emphasizing the importance of a potential return to the Suez Canal.
- Asset-light models also mitigate balance-sheet risk for shippers facing volatile demand.
- See how Freight Right helps streamline and enhance supply chain operations.
U.S. shippers paid sharply more for truck freight in Q1 2026, even as freight volumes barely budged. National shipment volume fell 0.3% from Q4 2025, but spending by shippers soared 12.9%. That is the largest quarterly jump since late 2020, according to the U.S. In 2026, shippers will be less interested in chasing rock bottom trucking rates and instead prioritize reliable capacity, DAT iQ Principal Analyst Dean Croke told Supply Chain Dive. Past mergers have negatively impacted rail networks and their customers, Jensen said, noting that several ACC members are “still suffering” from the fallout of the 2023 approval of the Canadian Pacific-Kansas City Southern merger.
- Truck transportation employment in May bounced back from its temporary April dip to just above March levels.
- Drewry expects freight rates on the major trade lanes to increase further in the coming week.
- States adopt varied emissions mandates, with California’s zero-emission rules influencing fleet decisions nationwide.
- Regional 3PLs win contracts by tailoring services to local regulations and facility footprints, while global providers bundle multimodal offerings for complex supply chains.
- This way, you are not chasing updates across four different vendors or finding out about problems after the fact.
- By gradually migrating 60% of its volumes to the spot market (while keeping 40% on contract for planning stability), the company saves an average of $1,100/FEU — equivalent to over €180,000/year on 165 containers annually.
START SHIPPING
Eventually, the market will face the question of whether carriers can provide needed capacity at committed rates. In turn, shippers aren’t buying a discount, they are buying risk, Croke said. To stay agile, ocean shippers must closely monitor operational metrics to avoid delays and additional costs, Chitty said. Although rates may fluctuate slightly due to standard practices — for instance, carriers using blank sailings to manage capacity — rates will not be a concern for shippers.
Customised Real Time Benchmarking · Latest release 01 Jun 2026
- In year four of the freight market downturn, many 3PLs are cautiously optimistic that market conditions could improve in 2026.
- The party holding this document is also the party controlling the cargo.
- SHIPIT Logistics® is unique in its approach to worldwide operations and coverage.
- Moreover, a Sea Waybill is not negotiable and cannot be assigned to any third party.
DHL Ocean LCL provides you with reliable, fully managed end-to-end transportation, ensuring predictability across your https://livingspainhome.com/international-road-freight-transportation-with-tels-global.html supply chain and helping you deliver on your promises to customers. We offer more direct services cutting transit times to a minimum and avoiding transhipment and double handling. Standard, high-cube, and specialty containers are visible by route and departure window, giving shippers clarity on capacity before committing cargo.