AIR FREIGHT
AIR CARGO SPOT RATES SURGE 30% IN APRIL
- In April, global air cargo spot rates surged roughly 30% year‑on‑year to about $3.34 per kilogram, the highest level since October 2022, driven by a tight supply of capacity on major trade lanes. The increase was sharpest on Asia–North America routes, where limited belly capacity from recovering passenger flights left shippers competing for space and paying premiums. Contract rates also rose more than 18%, showing that higher costs affected both spot and planned shipments.
- The primary cause was a capacity crunch rather than fuel prices; when space shrinks faster than demand, carriers gain pricing power. Businesses faced higher freight costs and planning uncertainty, with some delaying Q3–Q4 tenders while waiting for normalization.
- As passenger networks recover and more belly capacity returns, prices may ease, though the market remains vulnerable to disruptions that could quickly reverse gains. For logistics professionals, this underscores the need for diversified transport options and flexible procurement to manage cost and service risk when air-freight markets tighten unexpectedly.
REGION-TO-REGION SPOT RATES
*All pricing reflects average spot rates per kilogram as of the latest April market upon.
Source: Supplychain Dive
AIRFREIGHT RATES – BALTIC EXCHANGE AIRFREIGHT INDEX
Source: Air Cargo News
Baltic Exchange Airfreight Index (BAI) powered by TAC Data
Rates are based on spot and contract prices provided by freight forwarders
OCEAN FREIGHT
OCEAN FREIGHT RATE MOVEMENT (MARKET AVERAGE) IN THE PAST 3 MONTHS
Source: Xeneta
OCEAN FREIGHT: Port of Los Angeles sees April volume jump despite Iran war shadow
- The Port of Los Angeles recorded its strongest month of 2026 in April, processing nearly 891,000 twenty-foot equivalent units (TEUs)—a 5.7% year-over-year increase and the second-busiest April on record. This performance demonstrates remarkable supply chain resilience despite the ongoing Iran war casting uncertainty over global trade.
- Imports drove the surge, rising 5% to approximately 460,000 TEUs as American consumers continued spending at near-record rates. Retailers have already received spring and summer merchandise, with back-to-school and early holiday inventory now moving through the pipeline. Year-to-date trade reached 3.28 million TEUs, running 2% ahead of the five-year average. Exports declined slightly 0.5% to roughly 128,000 TEUs, reflecting tariff impacts on outbound U.S. goods.
- Significant headwinds remain. The Strait of Hormuz stays closed, disrupting a critical artery handling over 100 ships daily and transporting 20% of global energy. Fuel costs at Los Angeles and Long Beach are nearly 20% higher than other major U.S. ports, prompting fuel surcharges that will likely pass to consumers. Port Executive Director Gene Seroka noted consumers continue purchasing while increasingly bargain-hunting, signaling resilient but cautious demand amid rising costs and geopolitical uncertainty. Transpacific trade remains stable despite the conflict's shadow, though higher fuel costs and disruptions present growing risks ahead
CONTAINER THROUGHPUT BREAKDOWNS
Source: Supplychain Dive, Yahoo!finance
OTHER LOGISTICS NEWS YOU MIGHT BE INTERESTED IN:
US ports outline spending goals in push to reshore crane making (Read)
Source: JOC
UK government scraps proposed fuel duty increase in relief move for truckers (Read)
Source: JOC
FMC searching for new members to serve on shipper advisory board (Read)
Source: JOC
Middle East disruptions ‘weigh heavy’ on the supply chain (Read)
Source: Seatrade Maritime News
US charges container manufacturing executives for price fixing (Read)
Source: Seatrade Maritime News
How AI is being used in transportation management systems today
- Artificial Intelligence has quickly become one of the most talked about technologies in supply chain and logistics. From industry conferences to vendor announcements, AI is often positioned as a transformative force. But behind the headlines, a more practical question remains: is AI truly being used in transportation management systems today and if so, where is it actually delivering value?
The answer is more nuanced than many expect…
- The news makes a compelling case that AI in transportation management today is about practical, targeted implementation at critical decision points. By embedding AI into spot auctions, approval workflows, and automated tendering, organizations create a unified decision framework that influences outcomes proactively.
- The key takeaway: successful AI implementation requires deliberate focus - identifying where data, repetition, and measurable outcomes intersect, then applying AI to improve consistency, reduce manual effort, and support better decision-making without replacing human expertise. This pragmatic approach represents the future of AI in transportation management: not as a technology buzzword, but as a practical tool for operational excellence.
Source: Supplychain Dive
OTHER INNOVATION NEWS YOU MIGHT BE INTERESTED IN:
White House postpones executive order on AI (Read)
Source: CNN
AI turned Samsung into a $1 trillion company. Its workers want a bigger slice of the pie (Read)
Source: CNN
Huawei plans new smartphone chips this fall as rivalry with Nvidia and Apple heats up (Read)
Source: CNBC
Lenovo shares jump nearly 20% on record earnings as AI revenue nearly doubles (Read)
Source: CNBC
CEO of Standard Chartered: I'm sorry for 'lower value human capital' comments (Read)
Source: Business Insider
