As we enter 2025, the outlook looks quite positive across the industry. Here’s what to expect this year in terms of rates, equipment, and capacity:
Rates: Continued Volatility
We’re seeing a continued rise in rates. While long-term contracts provide stability, many forwarders are securing nearly half of their capacity on short-term deals, making it crucial for shippers to stay flexible. Tariffs, geopolitical uncertainty, and shifting production patterns could drive sudden rate changes, so close collaboration with your forwarder is key.
Capacity: Tight but Improving
Capacity remains tight in certain sectors, but easing ocean freight congestion and increased air cargo belly capacity from passenger flights should provide some relief. However, potential disruptions, such as US port strikes or regulatory changes, could create temporary bottlenecks. Forwarders with diverse networks and strong partnerships will be well-positioned to secure space for shippers.
Equipment: Managing Availability
Equipment shortages, particularly for containers and specialised transport, are expected to persist but at a less severe level than in recent years. Shippers should plan ahead for key shipments and leverage forwarders’ expertise to access equipment in high-demand markets.
Container shipping rates are rising slightly, with the average global rate now at $3,905 per 40ft container. While this is 62% lower than the pandemic peak in 2021, it’s still 175% higher than pre-pandemic levels in 2019.
Freight rates update
Key Rate Changes:
Shanghai to Los Angeles: Up 7% to $4,829 per container.
Shanghai to New York: Up 6% to $6,445 per container.
Rotterdam to Shanghai & New York to Rotterdam: Up 2%.
Shanghai to Rotterdam: Down 1% to $4,774 per container.
Other major routes, like Shanghai to Genoa and Los Angeles to Shanghai, remained stable.
Rates on transpacific routes are expected to increase next week due to early shipments ahead of a possible US port strike and anticipated tariff hikes under the new Trump administration.
Air Freight Updates
Air Cargo in 2025: Opportunities, Challenges, and Insights for Forwarders
The air cargo market has experienced 13 straight months of double-digit growth, driven by e-commerce demand and disruptions in ocean freight, such as the Red Sea crisis. This has narrowed the cost gap between air and sea shipping, making air freight more attractive.
However, freight forwarders haven’t shared equally in the boom, as much of the growth has come from e-commerce, a sector where they play a smaller role compared to traditional B2B volumes.
Key challenges for 2025 include potential US port strikes, rate fluctuations, and rising security risks, such as cyberattacks or restrictions on passenger plane cargo. Freight forwarders must be prepared for rate volatility, as many deals are based on short-term pricing while long-term contracts with shippers remain in place.
Despite these hurdles, there are opportunities. Increasing production shifts to Southeast Asia due to tariffs could drive new air cargo volumes. Additionally, improved transparency in air cargo pricing is fostering stronger relationships between shippers and carriers.
Advice for forwarders? Stay adaptable, use data-driven insights to navigate market changes, and prepare for more demand as e-commerce continues to thrive
E-commerce Fuels Air Cargo Growth in 2025
E-commerce continues to drive air cargo growth, with demand for capacity expected to remain strong in 2025 despite global challenges. For shippers, this presents a significant opportunity to tap into a booming market.
While e-commerce cargo is sometimes seen as low-margin, its consistent growth makes it a vital part of any shipper’s strategy. By aligning with carriers offering reliable networks or innovative services, shippers can stay competitive and unlock value in this fast-growing sector.
Our Airfreight team are here to help
Our Heathrow office, backed by a team of experienced Senior Key Account Managers, is fully equipped to provide tailored support for your air freight movements. Whether you're managing urgent shipments, high-value cargo, or navigating complex customs requirements, our team is here to ensure a seamless and efficient process.
We specialise in:
Route Optimisation: Identifying the most efficient and cost-effective flight paths to meet your deadlines.
Capacity Management: Leveraging strong airline partnerships to secure space, even during peak seasons.
Tailored Solutions: Designing bespoke air freight solutions for unique cargo requirements, including temperature-sensitive goods and oversized shipments.
Customs Compliance
[Webinar] Ensuring Compliance: 2025 Safety Declarations for UK Imports
Join us for an essential webinar to get a comprehensive overview of the forthcoming changes to import legislation, your obligations as importer and best practices to ensure compliance in 2025.
We'll be focusing on the UK's new safety and security declaration requirements for imports from the EU, effective from 31st of January 2025. With these upcoming changes, it's crucial to understand the new regulations to ensure seamless cross-border trade. Our experts will provide a comprehensive overview of the necessary declarations, compliance obligations, and best practices to help you navigate these changes effectively.
Key Takeaways:
Comprehensive understanding of the UK's new safety and security requirements for EU imports
Step-by-step guidance on completing the necessary declarations
Best practices to maintain compliance and avoid disruptions
Live Q&A session with industry experts
Don’t miss out—equip yourself with the knowledge you need for a strong compliance strategy and drive success in 2025!
There will be time for a Q&A at the end of the session, where you can ask your questions directly to the panel. Don't delay, register now.
Our expertise allows us to provide tailored solutions that address the complexities of the market. As shipping companies show signs of flexibility in contract allocation coverage and equipment release, our team can navigate these changes effectively, ensuring smooth operations for our clients. Our strategic approach includes offering guidance that allows businesses to plan and adjust their logistics strategies accordingly.
For companies dealing with EU-origin goods that are shipped back to the EU, Returned Goods Relief (RGR) can help you reclaim import duties on eligible goods.
Spot rates from the Far East to North Europe and the Mediterranean have already dropped 22% and13%, with further declines expected. Global container port congestion has reached a three month high. And Trump's tariffs are paused for 30 days. Read more.
