Container Rates Hold Firm as Air and Truck Freight Costs Climb

Freight costs are rising on the water, in the air, and on the road, even as overall shipment volumes barely move. Container rates from Asia are holding up, air freight prices jumped in October, and truckload carriers are preparing to ask for big contract increases. At the same time, factory activity keeps growing, which points to more cargo ahead.

Continue reading for a quick look at what is driving costs and what it means for your freight plans.

Container Rates Stay High as Carriers Push for November Hikes

Asia-to-U.S. container rates are holding firm even as demand cools. Carriers want increases of $2,000 to $3,000 per container this month, but forwarders doubt the hikes will stick because space is easier to find and vessel schedules are steadier. East Coast rates sit near $9,900 per container, still well above pre-peak levels. 

A possible strike by port security workers at Los Angeles and Long Beach adds another wild card, with talks still underway. Ships returning to the Suez Canal route are one reason space is loosening. The takeaway is simple: expect high ocean costs to linger, and keep some buffer in your delivery dates.

U.S. Factory Activity Grows for 10th Straight Month

U.S. manufacturing expanded again in October, as the Institute for Supply Management index came in at 55.5, beating forecasts. This is a diffusion index, so any reading above 50 signals growth. Factory production reached its highest level in five years. For freight, that is a healthy sign, because busier factories usually mean more shipments a few months later. 

Carriers are already noticing the improving manufacturing activity levels in the country. XPO said half of its LTL customers expect stronger demand in the first half of 2027, and Old Dominion said customers are asking for multiyear contracts as truck capacity tightens. Shippers that lock in capacity early may avoid the scramble.

Air Freight Rates From Asia Take Off

Air freight prices from Hong Kong to North America rose sharply through October. The average climbed from $7.16 per kilogram at the start of the month to $8.17 by the end. Three things are pushing prices up: the traditional fourth-quarter peak, strong demand for AI and data center equipment, and jet fuel prices that have more than doubled from a year ago. 

Analysts expect rates to keep rising as peak season builds. If a delay on the ocean side forces a late switch to air, the bill will be steep, which is why early planning matters, as rising imports point to an early, costly peak season.

Holiday Stocking Pushes Truckload Carriers to Ask for More

Companies are filling warehouses fast ahead of the holidays, and truckload carriers plan to take advantage. The October Logistics Managers’ Index (LMI) showed inventories growing at the fastest pace in four years, while truck capacity shrank for an 11th straight month. 

Knight-Swift said it is targeting at least double-digit increases in its annual contract talks, and its network is seeing the most peak season project freight since the pandemic. Warehouse space is getting tighter and more expensive too. When trucks are scarce and stock is piling up, rates tend to rise and squeeze carrier margins.

Shippers Pay Far More to Move the Same Amount of Freight

U.S. shipper spending on freight jumped 32.1% from a year ago in the third quarter, according to the U.S. Bank Freight Payment Index. Shipment volumes rose only 0.5% over the same period, and that small gain was the first time volumes grew both quarter over quarter and year over year since 2021. In other words, shippers are paying much more for roughly the same amount of freight. 

Tight truck capacity and diesel prices above $6.50 per gallon are the main causes, and the pressure showed up in every region of the country. The index’s analysts noted that even where shipments were flat or falling, higher operating costs and tighter capacity kept spending rising. For shippers, the message is that cost pressure is widespread and not tied to one lane or region. Budgets built on last year’s freight costs will likely fall short, and locking in capacity early gives you more control over what you pay.

Ship Seamlessly With APL Logistics

Costs are climbing in every mode, so the best protection is flexibility and early planning. APL Logistics’ transportation team helps you secure ocean, air, and truck capacity before prices move again; our customs brokerage & global trade specialists help keep cargo moving if port disruptions hit, and distribution & fulfillment gives you warehouse space to hold inventory through the holiday peak.

Shipping internationally means coordinating freight, customs, warehousing, and last-mile delivery, often with different providers who don’t communicate with each other. With operations in more than 60 countries and over 200 facilities, APL Logistics brings it all under one roof. Contact us today to get started.

Disclaimer: This article is issued for general information purposes only. APL Logistics accepts no responsibility for any information contained within this article and disclaims and excludes any liability in respect of the contents or for action taken based on such information.