Logistics Market Update March 2025

March 2025 Logistics Market Update | Forceget
Monthly Highlights
1. European Logistics Adapts to Demand Rebalancing
After months of congestion, Europe’s shipping industry is now adapting to reduced demand and improving port fluidity. However, geopolitical tension continues to cause uncertainty in trade routes.
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2.Air Freight Capacity Tightens in Key Regions
Air freight demand picked up slightly in March, with capacity remaining tight across major routes. Carriers continue to balance space allocation between passenger and cargo services.
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3.Warehousing Remains Expensive Despite Dip in Freight Rates
Even as some transportation rates dip, warehousing lease prices remain high, especially in major U.S. and EU logistics hubs. Businesses are urged to optimize long-term storage strategies.
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Key Takeaways
- Ocean freight spot rates remain unpredictable due to capacity adjustments.
- European supply chains are recalibrating in response to shifting demand and ongoing political instability.
- Air freight availability is limited, pressuring shippers with urgent cargo needs.
- High warehouse costs continue to impact long-term storage planning despite drops in trucking and container rates
Ocean Freight Market Update
Rate Trends and Capacity Adjustments
Freight Rates:
Ocean freight rates remain volatile due to tariff changes and Red Sea disruptions. The Shanghai Containerized Freight Index (SCFI) shows sharp YoY rate increases across several lanes:
- Asia–Europe: Rates soared +130% YoY, driven by ongoing Red Sea rerouting and vessel capacity constraints.
- Asia–U.S. West Coast: Up +95% YoY, primarily due to pre-Lunar New Year stockpiling and front-loaded import activity.
- Asia–South America: Jumped +110% YoY, as tight vessel space and strong demand continue to strain capacity.
Capacity Outlook:
- Idle Fleet Levels: Despite global challenges, the idle fleet remains under 0.5%, reflecting strong utilization rates across carriers.
- New Vessel Deployments: Major players like Maersk and Hapag-Lloyd have increased sailings to offset Red Sea detours and preserve schedule reliability.
Market-Specific Insights
Asia-Europe
- Delays & Rising Costs: Continued rerouting around Africa is extending transit times by 12–16 days, significantly increasing freight costs.
- Capacity Constraints: Several carriers have suspended new bookings on Asia–Europe lanes due to congestion and a shortage of available vessels.
Asia-U.S. West Coast
- Tariff Impact: A pre-tariff shipment surge in February caused temporary rate hikes and pushed demand toward premium services.
- Post-Tariff Trends: Spot rates are beginning to stabilize slowly, though port congestion continues to hinder full recovery.
South America
- Limited Capacity: Ocean freight rates remain 120% higher YoY, driven by persistent vessel space shortages.
- Port Congestion: Delays continue at major Brazilian and Chilean ports, adding an average of 3–5 extra days to shipping timelines.
Environmental and Compliance Developments
EU Emission Trading System (ETS) Expands
- Carriers are now required to cover 85% of their emissions under the EU ETS, contributing to higher surcharges and increasing operational costs throughout 2025.
IMO 2024 Regulations & Fuel Costs
- Ongoing stricter emissions regulations are pushing fuel costs higher, especially on long-haul shipping routes, intensifying margin pressures for carriers and shippers alike.
Congestion and Reliability
Global Schedule Reliability
- While global reliability has slightly improved to 63%, continued Red Sea disruptions and port congestion are creating delays and inconsistencies across key trade lanes.
Vessel Delays
- North Europe and U.S. West Coast ports are experiencing 5–8 day delays due to labor shortages and heavy backlogs, further complicating schedule adherence.
Air Freight Updates
Peak Season Performance
Demand Surge
- Elevated Demand Post-Holiday: Air freight demand remains high due to sustained movement of pharmaceuticals, electronics, and automotive components.
- E-commerce Growth: Increased e-commerce volumes, particularly on Asia–U.S. and Asia–Europe routes, are intensifying pressure on air cargo capacity.
Capacity Constraints
- Aircraft Maintenance & Staffing Issues: Ongoing maintenance delays and pilot shortages continue to restrict available cargo space, resulting in longer booking lead times.
- Premium Cargo Prioritization: Airlines are prioritizing high-margin cargo, pushing out lower-margin shipments to later flights or higher-cost lanes.
Rate Increases
European Routes: Air cargo rates to Europe climbed 9% MoM, driven by tight capacity and rising fuel costs.
Asia–U.S. West Coast: Rates on this corridor spiked by 12% MoM, with some lanes seeing even sharper increases due to demand surges.
Region-Specific Developments
Asia-Pacific
- Semiconductor & Electronics Surge: High demand for semiconductors continues to drive up rates across intra-Asia and Asia–U.S. routes.
- Export Growth in China: Strong outbound volumes from hubs like Shanghai Pudong and Hong Kong are keeping capacity tight and pushing up rates.
Europe
- Aerospace & Automotive Shipments: Increased industrial shipments are crowding out general cargo on major lanes.
- Customs Congestion: Delays at Frankfurt and Amsterdam airports due to customs backlogs are extending lead times.
Disruptions and Delays
Weather Events
- North America Snowstorms: Winter conditions caused disruptions and delays at Chicago O’Hare, New York JFK, and Dallas/Fort Worth.
- Perishable Shipment Delays: Sensitive goods are experiencing delays of up to 36 hours, especially in volatile temperature conditions.
Geopolitical Tensions
- Middle East Conflict Impact: Instability continues to affect global air lanes, leading to detours, higher fuel costs, and longer transit times.
- Red Sea Diversions: These have increased reliance on air freight, driving capacity constraints even further.
Technological Advancements
Cargo Tracking Systems
- AI-Powered Visibility: Airlines are adopting AI-driven visibility tools for enhanced tracking and real-time decision making.
- Predictive Analytics: New tools are being used to optimize cargo allocation and reduce operational bottlenecks.
Drones for Last-Mile Deliveries
- Rural Trials: Logistics providers are expanding drone delivery pilots, especially in high-demand and remote areas.
- Regulatory Progress: Some countries are moving forward with regulatory approvals for wider drone operations, especially in healthcare and time-sensitive sectors.
Freight Market and Amazon News
Tariffs and Trade Policy Updates
U.S. Tariffs on Chinese Imports Take Effect
- Trump’s proposed tariffs could hit Chinese imports with duties up to 60%, shaking global trade flows.These changes may raise costs for e-commerce sellers, especially on electronics and essential goods.
- Vietnam, Mexico, and India continue to attract companies seeking alternatives to Chinese manufacturing hubs.
- Source:Forceget
Mexican Tariff Policy Impacts Cross-Border Trade
- Mexico implemented a 19% tariff on goods from non-trade-agreement countries, complicating U.S.-Mexico trade routes for certain SKUs.
- U.S. sellers exporting into Mexico are reevaluating their supply chain strategies and looking for localized fulfillment options.
Source: The Loadstar
Amazon Marketplace Updates
Amazon Introduces New Seller Incentives for FBA Adoption
- First-time FBA sellers are now eligible for fee waivers, making onboarding more accessible and cost-effective.
- New discounted fees for high-demand product categories were introduced to increase FBA adoption among Amazon sellers.Source: FreightWaves
Amazon Enhances Restocking Capabilities with AI-Driven Features
- Amazon launched a new AI-powered “Send It Again” tool to help automate inventory restocking decisions.
- The tool is designed to reduce overstocking, improve inventory turnover, and enhance stock visibility for high-velocity products.
Source: TechCrunch
Shifts in Freight Demand and Pricing
Container Shipping Rates Experience Sharp Fluctuations
- Trans-Pacific spot rates surged 14% as U.S. shippers rushed orders ahead of expected tariff increases.
- Congestion in key European ports due to Red Sea rerouting has extended delivery times, impacting global shipping schedules.
Source: Sino Shipping.
Source: Sino Shopping
Air Cargo Sees Increased Demand Due to Supply Chain Disruptions
- Rising port congestion and geopolitical instability have driven more volume to air cargo, spiking prices and reducing available capacity.
- Airlines are adjusting routes and capacity to maintain stability amidst growing demand for faster, more predictable logistics solutions..
Source: Wiima Logistics
Forceget Supply Chain Provider is a leading NVOCC licensed global logistics company that specializes in parcel, air and ocean shipping. With offices in key locations such as the USA, China, Hong Kong, Turkey, Israel and Colombia, we are well-positioned to assist you with all your logistics and brokerage needs, no matter where you are located. We take care of all the complexities of international shipping, allowing you to focus on what you do best – competing in your local market. Additionally, we pride ourselves on being the number one Amazon FBA focused freight forwarder, ensuring that your products are delivered to Amazon warehouses in a timely and cost-effective manner. With Forceget, you can have peace of mind knowing that your global logistics needs are in expert hands.