The overall tone of the international air and ocean freight markets is a mixture of uncertainty and shipper hesitancy. Capacity has improved on both modes of transport while pricing stabilizes. 

AIR

• Air freight rates in some heavily competitive major lanes have settled uneasily to levels that occasionally approach pre-pandemic pricing.  

• Carrier service levels and space availability are subject to frequent last-minute delays and rescheduling.  

• Time-definite priority service is still available in some lanes, but usually at distinctly higher prices.  

• Fuel surcharge continues to fluctuate.
  

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OCEAN

Due to the continuous downfall of demand for ocean freight, carriers are still facing challenges in balancing the market's current capacity with demand. 

• The 'blank sailing' strategy employed by ocean carriers may remove around 30% of market capacity.  
• There is still uncertainty in ocean market rates after so much volatility during the pandemic. 
• As volumes and congestion have eased, data shows that reliability is improving, and utilization levels are back to pre-pandemic levels, which in turn are driving the decrease in rates. 
• The International Longshore & Warehouse Union (ILWU) and Pacific Maritime Association (PMA) are resuming talks to finalize the West Coast labor contract and ensure no disruptions in cargo movement.  
• Equipment imbalances are causing issues on the export side as imports decline, resulting in fewer containers available for exports.  
• A transloading surge is expected this year by intermodal providers. Between November and January, ocean containers accounted for only 47% of all intermodal shipments, while domestic containers accounted for 53%. Last year's chassis shortages and overcrowding at inland hubs like Chicago, Dallas, Kansas City, and Memphis mainly cause this.