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Check out the latest March 2026 Freight Market Insights from our Asia-Pacific Report

Air Freight Outlook

Escalating Middle East tensions have led to widespread airspace closures and airport disruptions, significantly impacting global aviation. Countries including Iran, Iraq, Israel, Qatar, Bahrain, Kuwait, and the UAE have imposed partial or full flight restrictions.
Demand was weak around Chinese New Year but is slowly picking up in March, especially for electronics, AI servers, and semiconductor cargo.
The temporary 10% global tariff may encourage some US-bound shipments to move back to China instead of Southeast Asia.
If tariffs become more uniform across countries, Intra-Asia cargo flows could slow compared to last year.

Escalating tensions involving Iran are disrupting key Middle East shipping routes, prompting carriers to avoid the region, increasing war-risk insurance costs, and creating delays and upward pressure on global ocean freight rates.
Ocean demand remains soft, and rates continue to stay under pressure despite carriers canceling many sailings.
More new vessels entering the market and some services returning via the Suez Canal are adding extra capacity.
Carriers are likely to continue managing capacity, but it is uncertain whether this will be enough to stop further rate decline

Northeast Asia: Air capacity is tight after the holiday rebound, especially for semiconductor and electronics shipments. Ocean demand remains soft.
Southeast Asia, India & Australia: Ramadan and Idul Fitri may slow operations. Indonesia and Thailand face tighter air space, while India sees stronger exports before its fiscal year-end.
North America & Europe: US ocean demand remains weak, while some air lanes are tight for aerospace and high-tech cargo. Europe continues to face weather and port congestion disruptions.
Mexico: Cargo delays are likely to continue in the short term due to road blockages, security issues, and congestion at key Pacific ports, which may affect delivery timelines and increase the risk of additional charges.

Some IEEPA tariffs were officially stopped on February 24, 2026, but the refund process is still unclear and may take time.
A temporary Section 122 import duty is expected, but full details are still pending from the US government.
Other tariff programs (Sections 301, 232, 122, 338) remain active risks, and companies should continue close monitoring and proper documentation.

There’s a lot more happening in the global freight market. Find out more in our monthly update.

Sincerely,

Catherine Chien

Chairwoman

Dimerco Express Group

Mobile: +1-909-413-3711