May 2025 Global Freight Update

• AMER - The Americas air freight market is currently undergoing a major transition. The primary driver of change is the shift in trade dynamics with Asia, particularly the US's tariffs and the revocation of the de minimis rule for Chinese imports. This is leading to a redirection of cargo flows from China to Southeast Asia, and a potential restructuring of e-commerce supply chains. While overall demand for air cargo into the Americas remains robust, particularly from non- China origins and driven by e-commerce, the market will likely experience continued volatility as businesses adapt to the new regulatory landscape and seek to diversify their sourcing strategies.
• EMEA - The EMEA air freight market is characterized by divergent regional performances. Europe maintains its steady growth, supported by strong transatlantic and Asia routes, and benefits from an increase in passenger belly capacity. The Middle East remains a crucial hub with robust long-term potential, even as recent figures show a temporary dip due to high comparables from the Red Sea crisis. Africa, while facing current headwinds and structural challenges, holds significant promise for future growth driven by trade integration and specific cargo sectors. The ability to overcome regulatory hurdles and invest in infrastructure will be critical for Africa to unlock its full air cargo potential.
• South Asia's air freight capacity is still limited:

Global Ocean Market Update

The global ocean freight market in May 2025 is in a state of continuous adaptation. The confluence of persistent Red Sea disruptions, significant US tariff changes, and a surge of new vessel capacity creates a highly unpredictable environment. Shippers are prioritizing supply chain resilience, diversifying sourcing, and exploring flexible contracting options. Carriers are actively managing capacity and adjusting their networks to navigate the shifting demand.

• Despite a recent ceasefire agreement between the US and Yemen's Houthi movement (announced May 6, 2025), a "sense of reality" persists within the maritime industry. Many major shipping companies remain wary of the ceasefire's durability and the broader instability, continuing to reroute vessels around the Cape of Good Hope.
• May 2025 is a critical month for ocean freight due to the immediate, albeit temporary, de-escalation of US-China tariffs and the permanent revocation of the de minimis exemption. This has triggered a significant shift in trade flows, caused immediate rate volatility, and is forcing a fundamental re-evaluation of supply chain strategies for businesses moving goods into the US.