Freight Market Update – December
Check out this month’s air cargo trends and insights presented by Judah Levine.
Webinar
Stay up-to-date on the latest freight market insights with Freightos’ Head of Research, Judah Levine, as he dives into the key disruptions of 2024, the challenges ahead for ocean freight and air cargo in 2025, and how digital tools are set to shape responses to volatility in the coming year.
Highlights from This Month’s Update:
- Red Sea Disruptions and Elevated Rates:
The Red Sea crisis has kept ocean rates elevated throughout 2024, with lead times stretching and schedules disrupted—especially for Asia-Europe trade. With no resolution in sight, expect rates to remain above pre-crisis floors and for peak seasons to start earlier than usual in 2025.
- Labor Disputes and Tariff Shocks on the Horizon: While East and Gulf Coast strikes caused short-term chaos this year, the unresolved automation debate could trigger further disruptions in January. Add in anticipated U.S. tariff hikes under a Trump administration, and you have the makings of demand surges, front-loading, and freight rate volatility.
- E-commerce Fuels Air Cargo, but Change May Be Coming: B2C e-commerce volumes, particularly from China, kept air cargo strong in 2024. However, proposed U.S. changes to the de minimis exemption could push platforms to shift shipments back to ocean, reshaping demand for airfreight moving forward.
- Capacity Concerns and Digital Adaptation:
New ocean capacity, currently constrained by Red Sea diversions, could flood the market if traffic resumes through the Suez Canal. Meanwhile, ocean carriers are ramping up digital platforms and dynamic pricing tools, while airlines continue to expand API-driven bookings and visibility solutions.
- Tech and Tools for 2025: From digital rate procurement to AI-powered forecasting, shippers and forwarders are increasingly adopting more advanced digital tools to handle market uncertainty.
