Freight market update - 24 July 2025

Greetings!

Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.

We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.

We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

• The U.S. has confirmed a 30% tariff on imports from the European Union and Mexico, effective August 1st.

• In a recent interview, President Trump proposed raising the current 10% blanket tariff on most trading partners to 15%–20%.

• Carriers raised rates in the second half of July, and MSC and CMA have announced additional General Rate Increases (GRIs) on East Coast routes.

• Capacity is holding steady between 84% and 91%, though blank sailings are no longer occurring in a predictable pattern.

• Rates for the second half of July remain firm across India and Bangladesh, though some stabilization is being observed among major carriers.

• Air freight spot rates dropped in June as capacity surpassed demand for the first time in 19 months, amid ongoing tariff policy concerns (Xeneta, July 4 report).

• The global air cargo spot rate averaged $2.50/kg in June, a 4% YoY decrease, marking the second straight monthly decline.

• The global Parcel Sortation Systems Market is valued at USD 2.05 billion in 2024 and is projected to reach USD 4.88 billion by 2035, growing at a CAGR of 7.50% from 2025 to 2035.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Demand has remained flat throughout July, with no significant volume increases anticipated.
• Carriers raised rates in the second half of July, and MSC and CMA have announced additional General Rate Increases (GRIs) on East Coast routes.
• Key carriers have either reduced or completely withdrawn long-term Peak Season Surcharges (PSS).
• Capacity is holding steady between 84% and 91%, though blank sailings are no longer occurring in a predictable pattern.
• The extra capacity added during the temporary tariff pause has now been fully withdrawn, returning supply levels to the average.
• Data indicates carriers initially increased space in response to the tariff pause, but scaled it back once demand remained flat.
• Rates for the second half of July remain firm across India and Bangladesh, though some stabilization is being observed among major carriers.
• Inland container depots (ICDs) in India are facing tight equipment availability, especially for HMM, HPL, and ONE.
• North India continues to see strong activity, with tight capacity and instances of cargo rollovers on certain services.
• Mundra and Kandla ports are experiencing weather-related stoppages, leading to vessel delays of 6–12 hours.
• Transshipment operations in Colombo remain disrupted due to high yard density and adverse weather conditions.
• Chittagong is facing congestion caused by recent heavy rainfall and the residual impact of previous industrial actions; full yards are affecting berthing schedules.
• Shippers are advised to book sailings at least two weeks in advance to secure their preferred schedules.

Central China

• Shanghai (SHA): Space availability is generally good, though weekend departures are tighter. Booking at least 5 days in advance is recommended.

North China

• Tianjin (TSN): Export demand remains strong. Space is typically available with 4–5 days' notice, especially on freighter services.
• Dalian / Beijing (DLC / PEK): Spot bookings are suitable for dense cargo, but larger shipments require early planning and flexibility.
• Qingdao (TAO): Capacity is sufficient for both East and West Coast lanes. Booking decisions depend on cargo type and routing.

South China

• Guangzhou (CAN): Operations are running normally. However, weather may impact final uplift, so early reconfirmation is advised.
• Shenzhen (SZX): The market remains steady, and deferred service space is evaluated on a case-by-case basis.
• Xiamen (XMN): Uplift capacity remains stable, but bookings should align with the latest carrier schedules.

Turkey → North America

• Air freight spot rates dropped in June as capacity surpassed demand for the first time in 19 months, amid ongoing tariff policy concerns (Xeneta, July 4 report).
• The global air cargo spot rate averaged $2.50/kg in June, a 4% YoY decrease, marking the second straight monthly decline.
• Rates from Southeast Asia to North America fell 11% YoY to $4.79/kg.
• In contrast, Northeast Asia to North America saw an 8% YoY increase, with rates rising to $4.72/kg.
• Niall van de Wouw, Chief Airfreight Officer at Xeneta, warned that “falling rates don't necessarily benefit shippers” when consumer confidence and demand are weak.
• He added: “With inflationary pressures and tariff worries, many consumers are cutting back on the types of goods typically shipped by air.”

June Snapshot – By the Numbers

• 1% YoY increase in global air cargo volumes
• $2.50/kg average global spot rate (down 4% YoY)
• 56% global dynamic load factor (down 2 percentage points YoY)
• Despite a 3% YoY increase in air cargo demand for H1 2025, the second half of the year looks less promising.
• Concerns include country-specific tariffs, changes to the U.S. de minimis exemption, and reduced consumer spending.
• The Trump administration’s temporary suspension of tariffs is scheduled to end August 1, with some new rates differing from those announced in April.
• van de Wouw noted: “We’re already seeing long-term damage. This might be the new normal as the market adjusts to ongoing uncertainty.”

Procurement Strategy Shifts

• Peak season tendering is being reshaped as shippers revise procurement timelines.
• The share of 3–6 month contracts increased by 8 percentage points YoY, reducing reliance on long-term annual agreements.
• However, compared to Q1 2025, 3-month contract share dropped 12 points.
• This is indicating that earlier contracts may have been made out of service reliability concerns rather than confidence in long-term rates.

North America → Turkey

• The U.S. has confirmed a 30% tariff on imports from the European Union and Mexico, effective August 1st.
• In a recent interview, President Trump proposed raising the current 10% blanket tariff on most trading partners to 15%–20%.
• EU officials are planning countermeasures targeting €72 billion worth of U.S. goods.
• EU Trade Commissioner Maroš Šefčovič warned that the proposed U.S. tariff could make it “almost impossible” to maintain the €4.4 billion in daily trade between the EU and U.S.
• U.S. officials claim the tariff is a necessary correction to long-standing trade imbalances.
• However, critical sectors like pharmaceuticals, automobiles, and steel are expected to be significantly impacted.
• The global Parcel Sortation Systems Market is valued at USD 2.05 billion in 2024 and is projected to reach USD 4.88 billion by 2035, growing at a CAGR of 7.50% from 2025 to 2035.
• This market is a fast-growing segment of the logistics and automation industry, focused on streamlining parcel and package sorting.
• Automation in distribution centers, warehouses, and e-commerce fulfillment hubs is at the heart of this market’s growth.
• Key growth drivers include:

1. The rapid expansion of e-commerce
2. Globalized supply chains
3. Rising demand for faster delivery services
4. Ongoing labor shortages in logistics
5. Increased expectations for enhanced customer experience

• The push for same-day or next-day deliveries is prompting businesses to boost automation with advanced sortation systems.
• Technological advancements are reshaping the industry, including:

1. AI-powered robotics
2. Machine vision systems
3. IoT integration

• These innovations are transforming traditional sortation into intelligent, high-speed systems that minimize human error and increase throughput.
• As businesses focus on efficiency and speed, parcel sortation systems are emerging as the foundation of modern logistics operations.

Terminal Updates

Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

New York:

• The waiting time for all vessels calling APMT is up to 6 hours. Maher Terminals LLC reports vessel waiting times averaging around 6 hours.
• Average gate turn times are 54 minutes for single transactions and 84 minutes for double transactions at APMT terminals and 35 minutes for Maher Terminals.
• The average import rail dwell time is 1 day at APMT and 1 day at Maher Terminals.
• The last 2 cranes on APMT East berth to be operational by end of summer.

Norfolk:

• 7 hour waiting time for a berth for Gemini and Non-Gemini Vessels.
• Average gate turn times are 28 / 40 minutes for single and double transactions at NIT, and 36 / 54 minutes for single and double transactions at VIG.
• The average Import dwell time is 4.1 days.
• Crane #4 at NIT remains out of service since April 16 with no current update.

Charleston Terminal:

• 18 hours waiting time for Gemini and non-Gemini vessels at Wando Welch Terminal.
• 3 hours waiting time at North Charleston Terminal.
• Average truck turn times are 18 / 20 / 15 minutes at Wando Welch Terminal, North Charleston Terminal, and Leatherman Terminal respectively.
• Average Import dwell time is 1.6 days at North Charleston Container Terminal.
• Average Import dwell time is 1.6 days at Wando Welch Container Terminal.

Savannah:

• The average waiting time for vessel berth is 0.7 days for class 1 and 1 day for class 2 vessels.
• Average gate turn times are 33 / 50 minutes for single and double transactions respectively.
• Import dwell time is 6.8 days. Rail dwell time is 1 day.

Houston:

• Waiting time is up to 3 hours at Barbours Cut Terminal and 3 hours at Bayport Container Terminal.
• Average gate turn times are 33 / 53 minutes at Barbours Cut and 29 / 47 minutes at Bayport for single and double transactions respectively.
• Loaded import dwell time is 3.6 days at Barbours Cut and 3.5 days at Bayport.
• Yard utilization at Barbours Cut Terminal remains high.
• To maintain terminal fluidity, the Port of Houston is adjusting receiving days and cut-off times on short notice.
• Effective August 1, 2025, Excessive Import Dwell Fees will be applied to loaded refrigerated (reefer) import containers once free time expires.
• These fees will also apply during terminal truck gate closures due to scheduled terminal shutdowns.

Oakland:

• No waiting time at Oakland International Container Terminal (OICT).
• Average gate turn time is 84 minutes for OICT.
• Average import deliveries can take up to 4 days at OICT.
• Oakland International Container Terminal has 2 cranes out of order.
• The Oakland International Container Terminal will be closed on July 2 and 7, 2025.

Seattle-Tacoma:

• No waiting time at Husky Terminal or Washington United Terminal in Tacoma.
• No waiting time in Seattle.
• Import rail dwell is 2.3 days at Husky and 3 days at T18.
• The average gate turn times are 47 minutes for T18.
• Average gate turn times are 43 / 72 minutes for single and double transactions at Husky.
• Husky will offer hoot gates on July 14, 15, and 16, 2025.
• T18 and HUSKY will be closed on July 4 and 7, 2025.

Los Angeles/Long Beach:

• All terminal gates are running as published and in line with the Pier Pass program.
• Port of Los Angeles dwell time for local import cargo is 3.0 days; on-dock rail dwell is 3.0 days.
• Import units on the street are averaging 3.3 / 4.9 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports remain at 4-8 days.
• Average terminal gate turn time is between 44 - 51 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

1. Chicago – Constrained on 20’ chassis.  
2. Kansas City - Constrained on 20’ chassis, Deficit on 40’ chassis.

Intermodal Operations

Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

Port Status

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing robust performance and is equipped with ample capacity and resources. Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions.

To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts. Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.