For this week’s logistics market update, air and ocean capacity out of the Indian Subcontinent remains tight as export demand continues to surge, Chinese and Asian port congestion continues to worsen following the typhoons, and airlines have pushed back their planned return to the Middle East after the collapse of the US-Iran ceasefire. Read on to get the full scoop regarding the latest CBP tariff refund updates as well.
Ocean Freight
India Export Market & Extra-Loader Response
Export demand out of India to the U.S. and Europe continues to surge, and carriers are struggling to keep up.
- CMA CGM has added an extra “Epic” India-Europe sailing to keep up with the demand.
- To expand India-USEC capacity, ocean lines are redirecting vessel space previously assigned to the Middle East, now beginning departures from Mundra and Nhava Sheva to handle as much as 6,000 TEUs.
- Cargo rollovers on premier westbound India services have reached as high as 2,000-3,000 TEUs per sailing in recent weeks.
- Despite the addition of extra sailings, shippers continue to face difficulties securing necessary space, with Mundra and Nhava Sheva as the main pressure points.
Port Congestion in China & Asia – Typhoon Impact
Vessel delays at key Chinese ports have worsened following Typhoon Maysak and Bavi, adding to port congestion, rollovers, and schedule reliability issues already affecting the region.
Panama Canal Surcharge
A new/updated Panama Canal-related surcharge affecting Far East-North America routings has been announced by Hapag-Lloyd, MSC, and CMA CGM. Going into effect on August 15th, August 19th, and July 25th.
Air Freight Market
Air cargo capacity remains critical across Asia and the Indian Subcontinent.
- Most carriers now require 5-6 days’ advance booking to secure space to the U.S. and Europe.
- Airlines are continuing to prioritize contract cargo and premium shipments as spot space grows scarcer and booking lead times extend.
- Following the collapse of the US-Iran ceasefire, Cathay Pacific, Singapore Airlines, British Airways, and Air Canada have all pushed back their planned resumption of Dubai/Gulf flights from early September to late October; KLM has not yet confirmed whether its own resumption plans will be similarly delayed.
- A third of Asia-Europe cargo that previously transported the Middle East has had to shift to direct freighters or alternate transshipment points, adding further pressure to already-limited capacity.
Customs Update: IEEPA Tariff Refunds
- CBP reports that approximately 24.4 million entries with IEEPA duties have been processed through CAPE since the system’s April 20 launch, representing $121.75 billion in potential and certified refunds.
- A new CAPE functionality launched June 29 allows importers and brokers to include certain unliquidated or recently liquidated entries flagged for reconciliation; roughly 1.97 million such entries have been filed and are pending processing.
CBP has opened registration for two free trade enforcement webinars in August:
Trade Violations Reporting (Aug. 10) at 1:00 pm E.T.: https://inevent.com/en/WebinarUSCustomsandBorderProtection-1739306113/TVRQ3/hotsite.php
Enforce and Protect Act/EAPA (Aug. 12) at 1:00 pm E.T.: https://inevent.com/en/WebinarUSCustomsandBorderProtection-1739306113/EAPAQ32026/hotsite.php
Find more information about future webinars here: https://www.cbp.gov/trade/stakeholder-engagement/webinars
With a significant number of new tariffs scheduled to take effect in the coming weeks, it is highly recommended that you register for the Cargo Systems Messaging Service to obtain this information directly from Customs: https://www.cbp.gov/trade/automated/cargo-systems-messaging-service
Plan Ahead
With India air and ocean capacity critical, Asia port congestion continuting by typhoon activity, and Middle East air disruptions extending into late October, early planning and flexibility remain essential across all modes of transportation.
- Book air shipments 5-6 days in advance to secure space to the U.S. and Europe.
- Book ocean shipments 3-4 weeks in advance to secure space.
- Secure ocean bookings as early as possible and avoid relying on spot market availability.
- Consider multimodal transportation methods when capacity is constrained like this.
If you have upcoming import or export shipments, our team can help you secure space, navigate these market changes, and avoid potential delays!
