Rising Freight Costs in a Soft Market: How to Stay Ahead
At Axxess, we’ve always believed that markets don’t need to be predictable for your supply chain to be controlled.
Today’s environment is a perfect example.
While demand across trans-Pacific lanes remains relatively soft, freight rates are moving in the opposite direction—driven by rising operational costs rather than volume.
What’s happening in the market
Recent data confirms a shift in the usual cycle:
- Asia–U.S. West Coast rates are up 11% week-over-week, with East Coast rates up 5%
- The Shanghai Container Freight Index (SCFI) has climbed more than 40% since the onset of the Iran conflict
- Global indices continue trending upward despite excess capacity
At the same time, carriers are facing significant cost increases:
- Higher fuel prices
- Increased insurance premiums
- Elevated storage and operational costs
These pressures are translating directly into rate increases and surcharges, even without strong demand.
Air freight under even greater strain
Air cargo is seeing a sharper impact:
- Capacity in key Middle East hubs is down approximately 30%
- Longer routings and disruptions are tightening supply
- Jet fuel costs have surged nearly 80%, accelerating surcharge activity
What this means—and how we respond
This is not a typical market. And in times like this, execution matters more than forecasts.
At Axxess, our focus is simple: protect your supply chain from volatility wherever possible.
We are actively:
- Reviewing routing strategies to balance cost and transit time
- Monitoring carrier behavior and surcharge implementation
- Supporting mode flexibility when timing or budget requires it
- Providing clear, real-time communication so there are no surprises
Our approach
We don’t chase the market—we help you navigate it.
That means:
- Planning ahead, even when demand signals are unclear
- Acting early to secure space and stabilize costs
- Staying close to your operations to adjust quickly when conditions change
Bottom line
Cost pressures are reshaping the freight market, regardless of demand levels. In this kind of environment, the right partner makes the difference between reacting—and staying in control.
We’re here to make sure you stay ahead.
If you’d like to review your lanes or discuss strategies to mitigate these increases, let’s connect