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Cargo surge and port congestion send Far East-Middle East rates climbing

Freight rates from Asia to Gulf economies trapped behind the straits of Hormuz hit unprecedented highs during this year's peak season as importers rushed to get cargo into the region, prompting another wave of port congestion. According to new data from Container Trades Statistics (CTS), prices on its Far East-Middle East & Indian subcontinent corridor showed the highest growth in freight rates of any major lane in container shipping so far this year. "It'll be no surprise that the big price index increase is Asia to India and the Middle East, where the index is up 250% since the beginning of the year and 25% month-on-month - so September's seen a resurgence of the price there and we're seeing some very strong prices," CTS chief executive Nigel Pusey tells The Loadstar's podcast today. The last pricing data came after volumes on the route rebounded during September for the first time since the onset of conflict in the region. "From Greater China to the Middle East, September was a bit of a boom month of volumes - China to Middle East was actually above this time last year for the first time since January and February. "I suspect that will fall back, but what has just kept forcing its way through to the top is the price they're paying to achieve it. We are now at a price index from Greater China to Middle East of 392, which is up 250% on the beginning of the year. "We have a month-on-month increase of 15.5%, despite the fact that year-to-date volumes are down 12%. "So, at the moment, what we've seen is a surge of cargo in late August, early September with prices to match, although I think that will drop off in October because the attacks did come back in that early part of the month. According to the latest spot rate data as per the Shanghai Containerised Freight index (SCFI), freight rates appear to have hit a ceiling of $6,500 per 40ft on the SCFI's Shanghai-Dubai leg and held at that level throughout October. However, that is some 300% up on the $1,630 per 40ft recorded at the end of October 2025. Meanwhile, the September surge has created some port congestion in the region, particularly at the two main ports immediately outside Hormuz - Fujairah and Khor Fakkan - which have acted as the chief landbridge gateways for GCC importers. Linerlytica reported last week that MSC had included a call at Khor Fakkan on a new Far East-Middle East service deploying 24,000 teu ships, "despite severe berthing delays". "Port congestion at Middle East ports has surged to a record high," Linerlytica added, and Mr Pusey said he expected to see liner networks flex to cope with the congestion. "I think there'll be some deviations. I've noticed one or two lines have stopped even serving cargo into Khor Fakkan and the Fujairah, which suggests that the place is getting very congested because people are trying to rush cargo through," he told The Loadstar. "They're now saying, 'Well, we're going to stop bookings whilst we just take a bit of a breather', and I don't usually use my crystal ball too much, but I'm pretty sure that's what's going to happen in October and early November." In general, the use of Khor Fakkan over Fujairah has divided the liner industry into two broad camps - with MSC and the Gemini partners Maersk and Hapag-Lloyd opting for the former, while CMA CGM and its Ocean Alliance partners have their services concentrated in Fujairah, with both ports hosting increasing numbers of smaller Asian and Middle East regional carriers' services. Meanwhile, Maersk said shippers were returning to using the Saudi Red Sea port of Jeddah as an alternative gateway to Gulf destinations. "Use of the Saudi Landbridge increased during October as evolving conditions at Khor Fakkan and disruption linked to the Strait of Hormuz led customers to explore alternative routings into Saudi Arabia and the wider Gulf," a Maersk statement said. "Interest is expected to continue into November, particularly when customers are seeking to reduce exposure to disruptions affecting port and shipping connections" it added. "The trend also highlights the value of coordinating ocean and landside planning across customer's chosen service providers. "However, capacity, border processing and onward delivery requirements should be confirmed for each shipment before routing decisions are finalized."

MSC Air Cargo expects first 777-8F delivery in 2035

MSC Air Cargo predicts it will receive the first Boeing 777-8 freighter from its order of seven of the type in 2035. The Italy-headquartered cargo carrier purchased five of Boeing's new generation 777-8Fs in December 2025. The order was confirmed in July this year and all five aircraft will be added to the Italian Air Operator Certificate (AOC). Speaking exclusively to Air Cargo News, Jayesh Ratada, head of commercial at MSC Air Cargo said that the anticipated nine-year wait for the 777-8F is in line with the current development of the new generation freighter. "Considering the current delivery timelines of the entire 777X programme, we are presuming the deliveries to happen sometime in 2035, or maybe if we are lucky, a couple of years earlier than 2035," suggests Ratada. In the meantime, as MSC Air Cargo continues to expand, it wouldn't be unexpected for the airline to seek out additional capacity to meet continued demand. Especially if AI-related cargo, some of which requires widebody main deck capacity specifically, continues to grow. However, Ratada says MSC has not secured the lease or purchase of any additional aircraft other than the 777-8Fs. "We are constantly exploring other production and conversion options available in the market. But at this point in time, we have not committed to any additional capacity." In a market where there is a growing sense of urgency around the topic of widebody freighter capacity shortages due to retirements and limited conversion feedstock, the new generation 777-8F and Airbus A350F have generated substantial interest. But due to production delays and orders already made, carriers that have recently placed orders for either model face a long wait before delivery. Boeing now has 89 777-8Fs on order from the programme and will not start delivering orders until 2028. Boeing started production on the 777-8F in July 2025. The 777-8F was originally anticipated to come to market in 2027, but in October 2024, Boeing announced it would delay launch until 2028. Meanwhile, Airbus has now secured orders for 115 A350Fs. The maiden flight of the A350F MSN700 prototype took place from Toulouse, France at the end of September. Following this, Airbus embarked on a nine-month test and certification campaign for the A350F. The second aircraft is currently in the final assembly line cycle and is due to take off on its first flight this year. But Airbus has pushed back the commercial launch of the A350F twice before. In May 2023, the company adjusted the entry into service date for the A350F from the end of 2025 to the first quarter of 2026. Then in February 2025, Airbus pushed back the entry-into-service date of the A350F to the second half of 2027.

FedEx boosts Madrid airside capacity for peak season

FedEx Express has completed the modernisation of its second airside facility at Adolfo Suárez Madrid-Barajas Airport to increase operational capacity and streamline customs procedures as peak season air cargo demand continues. The express giant said the modernisation of the facility adds 1,550 sq m of airside operational warehouse space and 913 sq m dedicated to technical and administrative offices. The refurbished facility adds to the existing FedEx airside capacity at the airport. Together, they bring the company's total airside operational footprint in Madrid to more than 4,500 sq m. This new facility supports Madrid's strategic role as a primary gateway and global transit hub within the company's European and intercontinental network, said FedEx. The facility incorporates four dedicated trailer docks, a castor deck roller platform capable of handling and manoeuvring up to 14 ULDs, and a high-density storage area with secure space for 5,700 pieces. The facility is also equipped with automated sorting systems, Check-Weight-Cube dimensioning and weighing equipment, and X-ray screening systems for shipment inspection. In addition, it features a Temporary Bonded Warehouse (ADT) and an authorised customs area. FedEx explained that the operational model of the new facility is designed to meet the demands of express and high-value cargo transportation and will help centralise Express and Economy shipping flows to and from the Canary Islands, simplifying customs formalities and shortening transit times. Furthermore, FedEx said the facility expands consolidation capacity for European Union Economy shipments bound for key destinations across Latin America and the United States. The facility also streamlines the comprehensive handling of International Priority Freight (IPF) shipments -- priority cargo and heavyweight goods -- which require direct ramp connectivity and priority customs processing, while providing additional surge capacity to accommodate seasonal volume peaks or tailored projects for strategic customers. "This expansion in Madrid-Barajas represents a critical milestone in strengthening our logistics infrastructure across the Iberian Peninsula," said María José Palacios, senior manager hubs & gateways Iberia, FedEx. "By consolidating core air cargo, transit, and customs capabilities at one of Southern Europe's most vital hubs, we deliver the resilience, speed, and scalability that Spanish businesses demand. "Amid significant growth in cross-border trade and on the eve of the peak shipping season, this modernised facility streamlines cross-border flows and shortens transit times, ensuring our customers connect better with global markets."