Latest Developments in International Freight Logistics

🌍 I. Global Overview

1. Red Sea Crisis Continues to Impact Global Shipping
The situation in the Red Sea remains tense, with major carriers (Maersk, CMA CGM, Hapag-Lloyd) still rerouting vessels via the Cape of Good Hope. This results in:

Increased transit times by 7–10 days;

Rising freight rates on Asia–Europe routes (up 5–8% week-over-week);

Growing pressure on container availability and scheduling reliability.

2. Panama Canal Drought Relief Underway but Restrictions Remain
Recent rainfall has slightly improved water levels, but transit limitations persist. LNG and large container vessels are given priority, while some shippers opt for Suez or alternative routing.

🚢 II. Ocean Freight Market

1. Asia–North America Freight Rates Continue to Rise

As of May 27, 2025, China–US West Coast spot rates average $4,300/FEU, up 7% from last week;

Drivers include early peak season stockpiling and Red Sea rerouting;

Carriers are planning another GRI (General Rate Increase) for June.

2. Labor Negotiation Concerns at US West Coast Ports

The ILWU is expected to begin a new round of negotiations with terminal operators in June.

Shippers are watching closely amid concerns of potential labor disruptions.

✈️ III. Air Freight Trends

1. Air Cargo Sees Recovery Driven by E-commerce Demand

E-commerce giants like Shein, Temu, and Amazon are entering mid-year promotional stockpiling, driving a 10–15% increase in outbound volumes from Guangzhou, Shenzhen, and Hangzhou to the US and Europe.

China–US West Coast airfreight rates now at $5.5–$6.2/kg (general cargo).

2. UPS and FedEx Upgrade Asia-Pacific Networks

UPS launches "Asia Night Flight Program" to enhance next-day delivery between Hong Kong, Japan, and South Korea;

FedEx expands its Guangzhou hub to support increasing e-commerce peak volumes.

📦 IV. Cross-border E-commerce & Dedicated Lines

1. Tight Capacity for China–US FBA Logistics

Freight forwarders report severe capacity shortages for FBA air and fast-ship services by late May;

Rates have risen by 10–20%, especially on routes bound for Los Angeles fulfillment centers.

2. EU VAT Enforcement Tightens, Affects Logistics Compliance

Several EU countries have strengthened VAT compliance checks for marketplace sellers.

In response, some forwarders now offer “VAT + DDP compliance packages” to streamline customs clearance.

🚚 V. Tech & Sustainability

1. Carriers Push Forward with Carbon-Neutral Initiatives

Maersk and ONE begin biofuel-powered trial voyages, especially on routes to Northern Europe and Japan;

The IMO’s new CII (Carbon Intensity Indicator) standards are now factored into voyage planning.

2. Digital Freight Platforms Accelerate Innovation

Flexport secured new funding this month, investing heavily in its AI-driven freight operating system.

Features such as automated quoting and instant booking are becoming increasingly sophisticated..