2025: The outlook for freight
The global freight industry enters 2025 amid a landscape shaped by robust demand, geopolitical tensions, and capacity constraints.
Air, sea, and road freight markets are set for growth, but businesses will need to navigate disruptions and adapt to evolving conditions to capitalise on emerging opportunities.
AIR
Air freight continues to grow, with global air cargo volumes projected to rise by 5.8% year-on-year, driven by eCommerce demand from Asia and seasonal trade peaks. However, capacity constraints remain a pressing issue, as limited wide-body freighters and reduced belly cargo capacity restrict supply on key routes.
Geopolitical uncertainties, including the Red Sea crisis and potential changes to US tariffs, will also influence the air freight landscape. Proposed adjustments to US ‘de minimis’ thresholds could further dampen eCommerce shipments. Despite these challenges, demand is expected to keep rates elevated, maintaining a competitive yet constrained market for shippers.
SEA
The sea freight market offers a mix of stabilised rates and moderate demand growth, projected at 3-4% for 2025. Rates remain above pre-pandemic levels, supported by successful general rate increases (GRIs) and pre-Chinese New Year demand.
Seasonal fluctuations are expected, with demand softening after January and new alliance networks launching in February and March. While this could create additional capacity, risks of overcapacity and congestion persist.
Geopolitical tensions, including potential US tariff increases and continued Red Sea disruptions, add to the complexity. The rerouting of vessels around the Cape of Good Hope has absorbed capacity temporarily, but a return to the Suez canal could disrupt the balance, impacting rates and transit times.
ROAD
The European road freight sector is projected to grow by 2% in 2025, following a 1% increase in 2024. Resilient domestic markets, boosted by improving consumer spending and cooling inflation, underpin this growth.
However, challenges remain. Driver shortages are worsening, with unfilled positions expected to exceed 60% by 2026. Rising operational costs and geopolitical uncertainty will also put pressure on operators, requiring flexibility and proactive planning to maintain performance.
Navigating 2025 with confidence
The freight industry in 2025 will require businesses to adapt quickly to a dynamic and complex environment. Agility and strategic planning will be essential to managing disruptions while seizing growth opportunities.
At PSP Worldwide Logistics, we provide tailored solutions to help you overcome these challenges. From addressing air freight capacity constraints to navigating sea freight volatility and mitigating road freight pressures, we are ready to support your success.
Partner with PSP Worldwide Logistics to streamline your operations, optimise your supply chain, and achieve resilient growth in 2025.
EMAIL our managing director, Colin Redman.