Freight Market Update – January
Check out this month’s air cargo trends and insights presented by Judah Levine.
Webinar
Join Freightos’ Head of Research, Judah Levine, for a deep dive into the first market trends of 2025. From ocean freight rates to air cargo capacity, Judah unpacks key geopolitical developments, labor negotiations, and the ripple effects of trade policy changes. This month, Judah is joined by Adam Lewis, founder of North American customs broker ClearIt, for valuable insights into potential tariff shifts and their impact on trade.
Highlights from This Month’s Update:
- Pre-Lunar New Year Pressure: Asia-Europe shipping lanes experienced early demand spikes as shippers pulled forward orders to avoid the Lunar New Year slowdown.
- Tariff Turbulence on the Horizon: As the Trump administration prepares to introduce tariff hikes, shippers are accelerating inventory to preempt cost increases, alongside continued front-loading to prop up rates and volumes in the short term, especially on Trans-Pacific routes.
- E-commerce Drives Air Cargo Resilience:
Challenges like potential de minimis rule changes in the U.S. could force shifts from air cargo to ocean freight. Rates nonetheless remain high, supported by ongoing capacity constraints and growing demand.
- Red Sea Diversions Continue to Loom Large: With no resolution to Red Sea route disruptions, carriers are maintaining elevated rates, with baseline rates likely to remain higher than historical averages for the foreseeable future.
- Next-Gen Freight Tech: From AI-powered forecasting to advanced customs brokerage solutions like those from ClearIt, cutting-edge digital adaptation remains critical, given the market’s ongoing volatility.
