Global freight rates ease as Middle East tensions pressure markets

Air cargo rates fell 1% week‑on‑week to US$3.13 per kilogram and spot rates slipped 2% to US$3.62 per kilogram, driven by lower fuel costs, softer demand around the U.S. Independence Day holiday and looming Middle East hostilities that could disrupt supply chains. Despite the decline, rates remain about 37% higher than a year ago, supported by strong pricing in the Middle East, South Asia and North America, while global cargo volumes softened by 2%.

Container spot freight rates on major east‑west trades stabilised, with Far East‑U.S. West Coast rates edging down 0.1% to US$7,069 per FEU and East Coast rates up 0.3% to US$8,808 per FEU. Rates to North Europe and the Mediterranean slipped modestly. Capacity offered by carriers rose 5‑6% week‑on‑week, easing market pressure but keeping prices well above pre‑crisis levels – up 276% on the Far East‑U.S. West Coast route since February. Analysts expect continued volatility as the traditional peak shipping season begins and the Strait of Hormuz remains effectively closed to container traffic.