Summary
Weekly International Logistics Report
Global logistics markets saw sustained ocean freight hikes, heightened geopolitical risks, expanded air & sea capacity, and partial regional supply chain disruptions this week. Container shipping indices rose for 8 consecutive weeks, with sharp rate increases on US and South America routes. Peak-season stocking, Panama Canal congestion and Middle East waterway security risks pushed up shipping costs and schedule uncertainties. Chinese ports and airlines launched new Southeast Asia and intercontinental routes to strengthen RCEP logistics connectivity. Air cargo demand and rates rose steadily with expanded dedicated freighter capacity. Regional disruptions stemmed from suspended Thailand-Cambodia land crossings, higher Black Sea transit fees and a new Russia Far East logistics hub. Tight container space and rising costs remain the mainstream trend with lingering cross-border channel risks.
Ocean Shipping Market Highlights
Global container freight rates keep surging, SCFI rises for 8 consecutive weeks
As of June 18, SCFI rose for 8 consecutive weeks to 3,121.69 (+4.57% WoW), and Drewry WCI surged 5% to $4,166/FEU, hitting a new high since September 2024. Rate hikes were prominent on US and South America routes, driven by peak-season preparation, US tariff expiry pre-shipments, Panama Canal congestion and elevated Red Sea detour costs. Carriers will enforce GRI and PSS increases in July.
Route-by-route rate performance:
– Trans-Pacific West Coast: $5,683 per FEU (+11.4% WoW); East Coast: $6,873 per FEU (+8.7% WoW). Carriers cut space release and plan General Rate Increase (GRI) & Peak Season Surcharge (PSS) in July.
– South America lanes enter pre-peak season early. Rate to Santos reached $8,212 per 20ft TEU (+8.2% WoW), caused by port congestion, reefer container shortage and slow empty box repositioning.
– Europe lane: $3,158 per TEU (+3.1% WoW); Persian Gulf lane dipped 1.3% amid geopolitical headwinds.
Key drivers: Pre-shipment rush ahead of US tariff expiry on July 24, Panama Canal congestion, longer transit via Cape of Good Hope/Red Sea, and advance stocking for Western holiday e-commerce season.
New Southeast Asia direct service launched at Dalian Port
On June 26, MSC launched a weekly Dalian-Vietnam direct service, expanding Dalian’s Southeast Asia route network to 26 lines. The route strengthens Northeast China’s RCEP trade corridor for mechanical, electronic and agricultural product bilateral trade.
IMO suspends vessel evacuation plan over Hormuz Strait security incident
A container ship attack in the Gulf of Oman on June 25 prompted IMO to suspend vessel evacuation plans for the Strait of Hormuz. Tightened Iranian navigation controls disrupted traffic. Vessel throughput remains below pre-conflict levels, with Middle East sea lane fuel surcharges rising 40%-60% and air freight substitution demand spiking.
Air Cargo Routes & Freight Market
Chinese carriers launch multiple intercontinental & SE Asia freighter routes
– China Cargo Airlines launched a 3-times-weekly PVG-London Stansted freighter service on June 23, transporting cross-border e-commerce goods and high-value exports outbound, and medical equipment, auto parts and fresh products inbound.
– SF Airlines launched a Haikou-Singapore round-trip freighter route (3 times weekly) on June 26, facilitating Southeast Asia parcel and Hainan cold-chain cargo transportation via Hainan Free Trade Port.
Global air freight rates up 6%-10% WoW, EU & US express lanes rise 8%-10%
Global air freight rates rose 6%-10% WoW, with US and European lanes up 8%-10%. Rate growth was driven by sea freight diversion, stricter battery cargo inspections and reduced Middle East air capacity. Cathay Cargo saw a 11% YoY volume increase, planning to expand US freighter flights and launch a new Almaty route in Q1 2027 to strengthen Central Asian connectivity.
Overseas Logistics Infrastructure & Industry Updates
Russian e-commerce giant Ozon to build large logistics hub in Irkutsk
Russian e-commerce giant Ozon will build a 60,000+ ㎡ logistics hub in Irkutsk, scheduled for 2027 operation, optimizing China-Russia cross-border land distribution and Siberian cargo transshipment.
Turkey to raise Black Sea strait transit toll by 15% (effective July 1)
Turkey will raise Black Sea strait transit tolls by 15% effective July 1, increasing logistics costs for Ukrainian grain exports and weakening Black Sea grain trade competitiveness.
Thailand closes all land border gates with Cambodia (humanitarian aid only)
Thailand suspended all land border crossings with Cambodia (humanitarian use only), halting cross-border trucking. Forwarders shifted cargo to sea and air modes, causing over 7-day cargo delays at Bangkok airports and disrupting Southeast Asian land supply chains.
Weekly Supply Chain Risk Reminders
Persistent geopolitical tensions in the Strait of Hormuz raise detour costs and prolong transit time for Middle East & Red Sea shipping lanes;
Tight space on US and South America routes with July carrier rate hikes; early booking is strongly recommended;
Disrupted Thailand-Cambodia land borders keep Southeast Asia cross-border air freight costs elevated;
Higher Black Sea transit tolls reduce the cost competitiveness of Ukrainian grain exports.
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