Freight
Tariffs and Iran War Prompt Ocean Shippers to Abandon Traditional Seasonal Shipping Patterns
At a media briefing on July 15, Port of Los Angeles Executive Director Gene Seroka noted that businesses are moving away from traditional seasonal shipping patterns and toward flexible transportation at favorable times. In June, the Port of Los Angeles handled over 1 million TEUs, its best performance for that period in 118 years, while the Port of Long Beach grew 10.6% year-over-year. Tariff policies, the Iran war, and rising fuel costs have increased uncertainty, and July cargo volumes are expected to remain strong.
DHL Global Forwarding adds Bangkok-Cincinnati route, expanding transpacific air freight capacity
DHL Global Forwarding announced on July 9 the addition of a thrice-weekly cargo flight route from Bangkok to Cincinnati, aimed at providing shippers with more stable flight schedules and predictable costs. The route has been operating since July 1, with a capacity of 100 tons per flight, suitable for oversized and high-value cargo. This move is part of DHL's strategy to expand its air freight network, and it has recently also increased capacity between Asia and Europe. Currently, the technology sector is the main driver of additional capacity demand in Southeast Asia.
Mitsubishi Motors Partners with Texas Port to Strengthen U.S. Vehicle Distribution Network
Mitsubishi Motors North America announced an agreement with port operator AMPORTS and the Port of Freeport, Texas, to enhance its vehicle distribution capabilities along the U.S. Gulf Coast and Midwest. This initiative aims to accelerate vehicle delivery by optimizing logistics processes and enhancing supply chain flexibility.
New freight corridor in Georgia to optimize Savannah port collection and distribution efficiency
The Georgia Department of Transportation announced that the $126 million Brampton Road Connector will open on Wednesday, July 16. This four-lane highway directly connects the Garden City Terminal of the Port of Savannah with Interstate 16, aiming to eliminate at-grade crossings and truck traffic through communities, reduce truck port entry times, and optimize inland transportation routes. This project is the final link in the Georgia DOT's approximately $600 million investment over nearly 12 years to build the Savannah freight loop highway, which has previously included projects such as the I-16/I-95 interchange improvements and the Jimmy Deloach Parkway. The port authority is also advancing other infrastructure, such as the Gainesville inland port opened in May, with an investment of $134 million and an annual handling capacity of 200,000 TEUs, as part of its ten-year, $5 billion investment plan.
BNSF approved to build $4 billion rail hub in California, expected to be operational by end of 2028
BNSF Railway announced that its $4 billion Barstow International Gateway (BIG) project has been approved by the Barstow City Council and will break ground later this year, with a target of becoming operational by the end of 2028. The project spans 4,500 acres and will integrate rail yard operations, intermodal transport, and transloading warehousing functions, aiming to shift container distribution from port-adjacent communities inland, reducing approximately 205 million truck miles, and deploying zero-emission equipment such as gantry cranes.
AI and semiconductor demand drive 7% year-on-year growth in global air cargo volumes in June
According to a report released by Xeneta on July 3, demand for AI hardware and semiconductors drove a 7% year-on-year increase in global air cargo demand in June. AI-related cargo volumes, particularly on Asia-Pacific to North America routes, are offsetting the impact of declining e-commerce shipments. Despite significant increases in trans-Pacific spot rates, rates on Europe to North America routes fell by 25%, and overall spot rate growth has moderated.
Trans-Pacific freight rates rise on early peak season and front-loading
According to Freightos' weekly update on June 30, trans-Pacific freight rates have risen due to shippers front-loading cargo, creating an early peak season. Asia-to-US West Coast spot rates are $6,200 per FEU, up 120% from mid-May; Asia-to-US East Coast rates are $8,000 per FEU, up 85% in six weeks. Xeneta data shows that front-loading is driving demand, with capacity deployment on the US West Coast route reaching a record high.
Lovesac Addresses Logistics Cost Pressure from Rising Oil Prices with Contract Freight
Amid rising oil prices and geopolitical uncertainty, furniture retailer Lovesac leverages contract freight partnerships to secure capacity and avoid spot market fluctuations. The company's Q1 gross profit declined, but it partially offset cost pressures by improving operational efficiency and advancing U.S.-based production.
FedEx plans to restore full MD-11 fleet capacity before peak season
FedEx CEO Raj Subramaniam said on a June 23 earnings call that the company plans to return all Boeing MD-11 freighters to service before the peak season. The fleet was grounded last year after a fatal UPS MD-11 crash, with only 25 of 34 aircraft in service before the grounding. Last month, the company began the return to flight in coordination with Boeing, the FAA, and the NTSB, and four aircraft have already resumed flying.