Welcome to our latest Market Watch update, where we dive into the ever-evolving landscape of sea and air freight. From shifts in market dynamics on the Asia to North America route to ongoing challenges at West Coast ports, we analyze the key trends impacting the industry. We also explore the implications of recent alliance renewals and offer insights into what to expect in the coming weeks. Join us as we navigate the complexities of global trade and share recommendations for optimizing your cargo movements.
For shippers managing multi-modal freight, real-time data is not a luxury — it is a competitive necessity. The ability to track ocean, air, and land freight in one unified dashboard gives operations teams the situational awareness needed to make fast, informed decisions when market conditions shift.
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Alliance Developments
The carrier alliance landscape saw a significant confirmation this period, with long-term implications for service reliability and routing options across major trade lanes.
Ocean Alliance Renewal Through 2032
The Ocean Alliance — comprising CMA CGM Group, COSCO Shipping, Evergreen, and OOCL — confirmed the renewal of their partnership through 2032. The alliance is positioning itself as the stable and reliable option for shippers seeking predictable service on key East-West trade lanes. Following the renewal, effective April 2024, shippers should be aware of upcoming service adjustments across several routes as the partners optimize their combined network.
Understanding how alliance restructuring affects your available services and transit times is part of effective supply chain risk management. When alliances reconfigure, equipment availability, port calls, and transit times can all shift — sometimes with limited advance notice.
West Coast Port Conditions
West Coast port performance continues to create planning challenges for importers routing cargo through the Los Angeles and Long Beach gateway.
LA/LB Port Delays and Rail Backlogs
Consistent 2–3 day delays persist at the Ports of Los Angeles and Long Beach. Rail connectivity from the Southern California gateway is also under pressure:
- Loading rail to the U.S. East Coast: 4–5 day delays
- Loading rail to the Midwest: 6–7 day delays
- Terminal operators at both ports are actively working to reduce rail container backlogs that have accumulated during two consecutive months of strong import volumes
- Both BNSF and UP are being urged to increase railcar supply to the ports to help clear the backlog
New vessel deliveries coming onto the market may help schedules begin to stabilize over the near term as capacity supply catches up with demand. In the meantime, shippers routing cargo through Southern California should build buffer time into their inland delivery planning.
Asia to North America Ocean Freight
The trans-Pacific trade lane remains dynamic, with rate softening underway even as carriers attempt to defend their revenue through General Rate Increases.
Floating Market and GRI Activity
The floating market continues to soften on the Asia–North America route. Carriers are implementing General Rate Increases (GRIs), though market observers question whether these GRIs are warranted given the direction of underlying demand. Whether Red Sea surcharges will be upheld in the current environment remains uncertain as market conditions evolve.
Southeast Asian and Indian subcontinent origin markets continue to gain traction as an increasing number of buyers look to diversify their sourcing away from China. This geographic shift in sourcing — driven in part by Section 301 tariffs and broader trade policy considerations — is reshaping freight flows across the Pacific.
Recommendations for Time-Sensitive Cargo
Given current West Coast port delays and rail backlogs, shippers with time-sensitive shipments should consider the following strategies:
- East Coast routing via West Coast transload: Ship to the West Coast and use transload services or rail connections to reach East Coast destinations — this can be faster than waiting for East Coast vessel services under current market conditions
- Premium carrier services: Utilize premium services offered by carriers to guarantee space and equipment, reducing the risk of rollovers and unexpected delays
- Freight consolidation: Review our freight consolidation guide to determine whether consolidating shipments can improve cost efficiency and reduce your exposure to per-unit delays
Asia to North America Air Freight
The air freight market is performing strongly, driven by a combination of robust e-commerce volumes out of China and the spillover demand from ocean shippers rerouting around the Red Sea conflict zone.
E-Commerce Demand and Rate Dynamics
Air freight rates are maintaining elevated levels as e-commerce shipments from China remain robust. The sustained demand from cross-border e-commerce — combined with extended ocean transit times due to Red Sea diversions — has created a supportive environment for air cargo yields. Whether this growth is sustainable or partially a product of favorable year-over-year comparisons remains an open question as the market develops.
Cargo backlogs are building at major international airports in India, including Delhi and Mumbai, as export volumes spike. Airlines operating through these hubs are working through considerable backlogs, which may affect transit times for South Asian origin freight.
Red Sea and Geopolitical Freight Considerations
The Red Sea situation continues to influence global ocean freight routing and capacity. CMA CGM has resumed transit of some vessels through the Red Sea on a case-by-case basis, despite continued Houthi activity in the region. This selective resumption reflects the carrier’s attempt to balance operational risk against the significant cost and time premium of routing around the Cape of Good Hope.
Reports of a potential Houthi truce with Chinese and Russian shipping interests have not materialized into meaningful operational reality — a Chinese tanker was attacked by missiles fired from Yemen in the same period these reports circulated. Shippers should treat any narrative of normalized Red Sea transit with appropriate caution and continue to plan for extended ocean transit times on Europe-Asia and Red Sea-dependent trade lanes.
Understanding the air vs. ocean freight trade-off on lanes affected by Red Sea rerouting is particularly important for shippers with time-sensitive cargo. The cost differential between the two modes has narrowed on some lanes as ocean transit times have extended significantly.
Baltimore Bridge Collapse: Supply Chain Impact
The collapse of the Francis Scott Key Bridge in Baltimore is adding a regional supply chain disruption on top of the broader market volatility covered in this update. Rescue efforts have transitioned to recovery operations in the Patapsco River, with significant implications for Port of Baltimore cargo operations. Carriers are rerouting Baltimore-bound containers through New York/New Jersey and Norfolk. Shippers with freight routed through Baltimore should confirm the status of their containers and review any force majeure notices from their ocean carriers.
Port of Los Angeles: February Volume Surge
The Port of Los Angeles processed 781,434 Twenty-Foot Equivalent Units (TEUs) in February 2024, a 60% increase over the same period in the prior year. This marked the seventh consecutive month of year-over-year growth at the nation’s busiest container port. According to Port of Los Angeles official data, this sustained volume growth reflects the continued strength of U.S. import demand in early 2024 and validates the rail congestion pressures described above.
What This Means for Your Freight Strategy
The current market environment combines softening trans-Pacific rates with persistent West Coast port and rail delays, elevated air freight rates driven by e-commerce demand, Red Sea routing uncertainty, and a new regional disruption at Baltimore. This is precisely the kind of multi-variable environment where supply chain visibility software and proactive logistics partnership deliver measurable value.
Shippers who rely on reactive information — waiting for a delay notification before investigating alternatives — are consistently disadvantaged in volatile markets. The ability to monitor all active freight across all modes and carriers, and to respond to market intelligence before it becomes a supply chain crisis, is the core value proposition of the Control Tower platform.
For personalized guidance on optimizing your freight strategy in the current environment, contact us. Our team is ready to help you navigate complexity and keep your supply chain moving.
