RATE PEAK SIGNALS, SUEZ REOPENING, AND NEW AIR & RAIL ROUTES

July 2026 is shaping up to be a pivotal month for global logistics. Container freight rates have climbed for ten consecutive weeks to a four-year high, but the first signs of a peak are emerging. Meanwhile, shipping giants are cautiously returning to the Suez Canal, new air cargo routes are expanding across Asia, and China-Europe rail networks are entering a new era of scheduled services.

CONTAINER FREIGHT RATES HIT FOUR-YEAR HIGH – BUT PEAK SIGNALS EMERGE

What happened
Global container freight rates have surged to their highest levels since September 2024, driven by strong US demand and ongoing capacity constraints. As of July 3, the Shanghai Container Freight Index (SCFI) reached 3,326.87 points, up 2.69% week-on-week, marking its tenth consecutive weekly increase. This represents a 77.4% surge from the pre-rally level of 1,875.26 points on April 24.

The Drewry World Container Index (WCI) also rose 9% week-on-week to $4,530 per FEU, up 61% year-on-year.

Signs of a turning point
Despite the headline numbers, the market is showing clear signals of fatigue. Maersk's week 29 opening rates to Rotterdam held flat at $5,500/FEU – the first time in weeks that a major carrier has not pushed rates higher. The widely anticipated mid-July hike to $7,000/FEU has failed to materialize. Meanwhile, Ocean Alliance and Premier Alliance members have begun trimming their early-July rates.

Drivers and outlook
The rally has been driven not by surging demand, but by carrier capacity management. The top 10 carriers control roughly 90% of global capacity, and have actively reduced sailings to prop up rates. However, capacity is now increasing: Asia-US volumes are projected to rise from 1.98M TEU in June to 2.27M TEU in August, with the US West Coast alone seeing a 12% capacity increase. MSC has resumed weekly services, Maersk has added new routes, and an influx of extra-loader vessels is entering the market.

Industry observers now expect the rate peak to arrive within the next one to two weeks. The second half is likely to see a "peak then decline, oscillating downward" pattern as the front-loading rush subsides and new capacity enters the market.

Glovoyce Supply Chain Co., Ltd. advice
Avoid locking in long-term contracts at current peak levels. Maintain flexible procurement, monitor carrier pricing behavior closely, and consider waiting for the expected correction before committing to volume contracts.

MAERSK AND HAPAG-LLOYD BEGIN CAUTIOUS RETURN TO SUEZ CANAL

What happened
In a major development, Maersk and Hapag-Lloyd announced they will resume partial Suez Canal services through their Gemini Cooperation network. The AE15 (Asia-Mediterranean) route will now transit the Suez Canal instead of routing via the Cape of Good Hope.

The decision follows a comprehensive security assessment of the Red Sea region. Maersk emphasized that the move is "a significant step towards gradually restoring the Suez Canal transport corridor," but stressed that future adjustments will depend on continued stability in the region.

Market reaction
Shares of major carriers including Orient Overseas, COSCO, and others fell on concerns that the reopening could pressure global freight rates. Analysts view this as "the first step toward a full Red Sea recovery, potentially paving the way for a complete return by the end of the year."

A full return would shorten Asia-Europe voyage times from 40–45 days to 28–32 days, effectively releasing 12–15% additional capacity. Combined with the 2027–2028 newbuilding wave, this could significantly pressure rates.

Glovoyce Supply Chain Co., Ltd. advice
The reopening is expected to be gradual, not immediate. For now, maintain your existing routing plans but monitor developments closely. The medium-term outlook points to downward rate pressure – factor this into your Q4 and 2027 procurement strategies.

NEW AIR CARGO ROUTES EXPAND ACROSS ASIA

Several new air cargo routes launched in recent days:

Chengdu – Yangon (Myanmar)
On July 7, China Postal Airlines launched a B757-200F freighter service from Chengdu Shuangliu to Yangon, with a flight time of just 3 hours. Initial schedule: twice weekly (Tuesday, Sunday) with 25 tons of capacity per flight, expanding to three weekly flights once stabilized. The route carries cross-border e-commerce goods, Sichuan-made machinery, and electronics outbound, returning with Myanmar seafood, tropical fruit, and handicrafts.

Zhuhai – Kuala Lumpur
On July 8, the first international all-cargo flight operated by a foreign carrier departed Zhuhai Jinwan Airport for Kuala Lumpur, marking a key expansion of the Greater Bay Area's air cargo network. The route primarily serves e-commerce platforms including Shein and Pinduoduo. Scheduled for 4–6 weekly flights, it is expected to boost Zhuhai's weekly international cargo flights to over 28.

China adds 92 new international cargo routes in H1 2026
In the first half of 2026, China launched 92 new international air cargo routes, adding more than 210 weekly round-trip flights.

Glovoyce Supply Chain Co., Ltd. advice
These new routes offer expanded options for Southeast Asian trade – particularly for perishables, high-value goods, and e-commerce parcels. Evaluate whether these services can optimize your supply chain for the ASEAN market.

CHINA-EUROPE RAILWAY: SCHEDULED SERVICES ENTER A NEW ERA

Beijing launches its first scheduled China-Europe train
On July 1, Beijing's first scheduled (timetabled) China-Europe Railway Express departed from Fangshan, carrying 55 containers of machinery, furniture, and sports equipment to Moscow via the Erenhot port. Scheduled trains operate on fixed times, fixed routes, and fixed train numbers, providing stable, predictable transit of approximately 15 days at weekly frequency.

Xiong'an launches "Xiong-Shi-Ou" route
On July 3, Xiong'an New Area launched its first China-Europe service, using a "Xiong'an consolidation + road feeder + trunk train" model to connect to Shijiazhuang International Land Port.

Shijiazhuang adds Belgium route
Shijiazhuang launched its first train to Liege, Belgium – the 20th international route from the port. Transit time: approximately 20 days. Weekly frequency is planned starting in July.

Zhengzhou adds three new scheduled routes
Effective July 1, Zhengzhou added three new China-Europe/Central Asia scheduled routes covering ASEAN return, northern corridor, and western corridor routes.

Glovoyce Supply Chain Co., Ltd. advice
Scheduled train services offer a viable alternative to ocean freight (especially given 40–45 day Cape routings) and a cost-effective option versus air. For time-sensitive cargo to Europe, consider integrating rail into your multimodal mix.

CHONGQING OPENS WORLD'S FIRST OVERSEAS AIR CARGO STATION

What happened
On July 7, Chongqing Airport Group signed a cooperation agreement with Belgium's Liege Airport and Fumai Aviation to launch the Chongqing–Liege Overseas Air Cargo Station – the world's first overseas air cargo station established by a Chinese airport.

Located in Liege Airport's core cargo area, the facility covers 12,000 square meters with an annual handling capacity of 120,000 tons. It can handle all cargo types and provides local consolidation, warehousing, sorting, customs clearance, and distribution services.

Strategic significance: Liege Airport is Europe's fifth-largest cargo airport, located in the "Golden Triangle" core of Paris-Frankfurt-Amsterdam, with a 4-hour trucking radius covering 60 million European consumers. The facility gives Chongqing its first autonomous logistics node in Europe – previously, cargo arriving in Europe relied on third-party local providers.

Glovoyce Supply Chain Co., Ltd. advice
This development represents a major step in China-Europe logistics infrastructure. For shippers using the Chongqing-Liege corridor, expect improved service reliability and reduced dependency on third-party European handlers.

GLOVOYCE JULY ACTION PLAN