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Air and ocean freight capacity in Asia Pacific are both expected to remain tight as the annual peak season builds up, according to Dimerco’s outlook report for July
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Added pressure comes from operational challenges such as the ongoing terminal congestion at the airports in Manila and Bangkok, which means longer door-to-door transit periods
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Demand in the air freight market is mainly driven by semiconductor and AI-related shipments from Taiwan
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In ocean freight, importers are seen accelerating shipments ahead of anticipated tariff changes and higher bunker-related costs
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The reopening of the Strait of Hormuz in late June eased immediate concerns over fuel costs but the situation remains volatile with negotiations ongoing for the IS-Iran peace deal final terms
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Delays from potential heavy rains should also be considered as the southwest monsoon intensifies across Southeast and South Asia
Air and ocean freight capacity in Asia Pacific are both expected to remain tight as the annual peak season builds up, with added pressure from operational challenges such as the ongoing terminal congestion at the airports in Manila and Bangkok, according to Dimerco’s outlook report for July.
In its Asia Pacific Freight Report for July, the global logistics service provider said demand in the air freight market is mainly driven by semiconductor and artificial intelligence (AI)-related shipments from Taiwan, keeping the keeping the Taipei (TPE) transit hub operating at full capacity.
Space is particularly tight for lanes to the United States and within the region, while rates continue to hold firm across key Asia-Pacific trade routes.
A temporary spike in US-bound frontloading eased after early June, but unprecedented growth in the AI segment and its resulting demand for components is keeping capacity constrained.
Meanwhile, the congestion in Manila and Bangkok means longer door-to-door transit periods, which makes “shipment planning more critical than ever,” Dimerco said.
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Overall capacity constraints in the region are expected to persist through July with Taiwan, South Korea, Malaysia, Thailand, and Singapore remaining among the region’s tightest air freight markets.
“The clearest signal this month is out of Taiwan. AI-driven volumes have filled the TPE transit hub to capacity, and until that demand eases, space and rates across US and regional lanes will stay under real pressure,” said Kathy Liu Dimerco Express Group VP for Global Sales and Marketing.
Ocean Freight
In the ocean freight market, importers are seen accelerating shipments ahead of anticipated tariff changes and higher bunker-related costs, keeping transpacific capacity tight.
Carriers are continuing to implement General Rate Increases, Peak Season Surcharges, and bunker-related adjustments, resulting in firm rates across Asia-US and Asia-Europe trade lanes.
READ: High fuel prices, AI and electronics demand driving air, sea freight rates up
The reopening of the Strait of Hormuz in late June has eased immediate concerns over fuel costs as global oil prices dropped following the announcement of a US-Iran peace deal, but the situation remains volatile with negotiations ongoing for the final terms of the agreement.
“US import demand has stayed stronger than most expected, and that’s keeping space tight right through peak season. The difference this month is on cost. If the Strait of Hormuz stays calm, we may finally see fuel pressure ease rather than build,” said Ted Chen, Dimerco Express Group director for Ocean Freight.
The tariff-related changes involve the July 1 regulatory cutovers of the United Kingdom Emissions Trading Scheme maritime extension and European Union-US rates. The US is also preparing to implement tighter Importer of Record (IOR) rules, which means US-bound shippers should review bond adequacy and IOR structure early.
Delays from potential heavy rains should also be considered as the southwest monsoon intensifies across Southeast and South Asia. This weather also brings moisture risk, so protective packaging is advised for sensitive ocean cargo as well as through air.
Dimerco said blank sailings and congestion at key transshipment hubs, including Singapore and Port Klang in Malaysia, are further tightening effective capacity, reinforcing the need for early planning as July progresses.
