Al sharqi shipping Co LLC logistics and supply chain market update

August 7, 2026

August 2026 | Supply Chain & Logistics Update

Ocean Freight Capacity Tightens Across Trade Lanes as Peak Season Supports Elevated Rates

Ocean freight capacity is tightening across several secondary trade lanes as peak-season demand, carrier controls and operational disruptions reduce available cargo space. Conditions vary by corridor, but pressure on capacity and freight rates may continue through the third quarter of 2026, and businesses that rely on ocean freight services should plan accordingly.

Carriers are maintaining capacity discipline when demand softens. Vessel redeployments, blank sailings, equipment shortages and port congestion are limiting supply and preventing significant excess capacity across many regional routes.

Capacity Pressure Varies Across Trade Lanes

Demand is expected to exceed capacity on several Asian, European and Middle Eastern corridors. Asia-to-Middle East and Asia-to-Latin America services face particularly tight conditions during the peak period.

Europe-to-Africa capacity remains constrained, while Europe-to-Middle East routes continue facing disruption. In comparison, several North American and Latin American export corridors have greater available capacity, particularly services connecting North America with Europe, Latin America and the Indian subcontinent.

Intra-Latin America conditions remain broadly balanced or favorable for shippers. However, carrier service adjustments or unexpected demand growth could quickly change availability across these shipping routes UAE businesses depend on for import and export planning.

Middle East Disruption Reshapes Shipping Networks

The Middle East remains a major source of structural disruption. Conflict risks, prolonged vessel rerouting and port congestion continue extending transit times and reducing schedule reliability, putting added pressure on cross-border freight forwarding across the region.

These challenges are affecting outbound Middle Eastern services toward Europe, Asia and North America. Demand may exceed capacity across these corridors during the coming months.

Even if regional conditions improve, restoring services and repositioning vessels will require time. Immediate capacity relief is therefore unlikely.

Tight Space Keeps Freight Rates Elevated

Demand remains resilient across major Asian export routes. Carriers continue managing backlogs, cargo rollovers and equipment imbalances, particularly on high-volume corridors, and several are adjusting General Cargo Rate (GCR) levels in response to sustained demand.

Tight capacity, limited routing flexibility and carrier surcharges are supporting elevated freight rates. Routes facing sustained demand or structural disruption will likely experience the strongest pricing pressure.

Shippers should book early, confirm equipment availability and prepare alternative routings. Building collaborative supply chain forecasting into planning cycles can also help teams anticipate space constraints before they affect delivery timelines. Schedule reliability should remain a priority, as cheaper options may involve longer transit times, missed connections or greater transshipment risk.

August 2026 Global Ocean Freight Outlook

Key
++	Strong Increase
+	Moderate Increase
=	No Change
–	Moderate Decline
—	Strong Decline

Outbound

Middle East – Europe

Peak-season demand tightened vessel space and raised rates, although improving congestion and fewer blank sailings could ease pressure later in July.

Capacity – (-)

Rate – (+)

Middle East – Latin America

Stable ports and added seasonal services supported exports, although weather risks and some port delays affected reliability.

Capacity – (+)

Rate – (=)

Middle East – North America

Pull-forward demand, service withdrawals and blank sailings tightened capacity, extended booking windows and kept freight rates elevated.

Capacity – (-)

Rate – (+)

Middle East – Asia

New services improved North Asian access, while reduced Southeast Asian coverage and equipment shortages increased routing and reliability risks.

Capacity – (=)

Rate – (=)

Inbound

Asia – Middle East

Peak-season demand, service withdrawals and equipment shortages tightened space, driving sharp rate increases across major export routes.

Capacity: (-)

Rate: (++)

Europe – Middle East

Capacity reductions, blank sailings and port disruptions kept space tight and rates elevated, although summer holidays could soften late-July demand.

Capacity – (-)

Rate – (+)

Latin America – Middle East

Seasonal Asian demand supported stable vessel deployments, while weather risks threatened occasional routing and schedule disruptions.

Capacity – (=)

Rate – (+)

North America – Middle East

Reduced direct coverage and uneven container availability limited routing options, increasing transshipment exposure and schedule-reliability risks.

Capacity – (-)

Rate – (=)

August 2026 Air Freight Market Overview

Demand: Global demand rose 8.5% year-on-year, while international demand increased 9.6%.

Capacity: Capacity expanded 4.4% globally and 4.9% across international air-cargo operations.

News: Demand outpaced capacity, while technology products and urgent shipments supported growth, across the wider air freight services market.

The Middle East and Air Carriers

Middle Eastern carriers, including Etihad Cargo Abu Dhabi, recorded 5.6% year-on-year cargo-demand growth, while capacity rose 2.5%. However, Gulf routes remained disrupted. Europe–Middle East traffic fell 41.1%, and Middle East–Asia declined 4.1%.

Asia

Asia-Pacific airlines reported 7.9% growth in cargo demand and a 4.3% increase in capacity. Asia–North America traffic grew 14.7%, intra-Asia 7.2%, and Europe–Asia 7.1%.

America

North American carriers led all regions, with cargo demand rising 13.1% and capacity increasing 6.2%. Latin American and Caribbean carriers posted the weakest demand growth at 3.5%, while capacity expanded 9.8%.

Europe

European airlines recorded 6.9% year-on-year cargo-demand growth, alongside a 3.7% capacity increase. Europe–Asia traffic grew 7.1%, Europe–North America was unchanged, and Europe–Middle East traffic contracted sharply.

August 2026 Shipping Insights for the UAE

CMA CGM opened Jebel Ali–Fujairah land bridge export bookings, outlining strict cut-offs, customs documentation, container limits and additional processing charges. Read More

CMA CGM mandates prior declaration and approval for all lithium-ion battery shipments as part of stricter customs compliance services, with undeclared containers facing $15,000 penalties. Read More

For shipping companies in UAE and freight forwarding companies in UAE, these updates carry direct implications for booking cut-offs, documentation workflows and landed-cost planning over the coming weeks. Businesses tracking air freight routes UAE, activity should also factor in the wider capacity and rate movements outlined above when scheduling shipments.

Global Factory Output – Overview

Drewry’s World Container Index fell 3% to $4,255 per 40-foot container, reflecting lower shipping rates across Asia–Europe and Transpacific routes and signaling easing freight costs on key global trade corridors for procurement teams.

United States of America (USA)

Manufacturing growth showed warning signs in July as production slowed, new orders weakened, exports fell and supply delays increased. Energy costs and tariffs kept inflation high, limiting hiring, while business confidence dropped to its lowest since October.

United Kingdom (UK)

UK services returned to modest growth in July, supported by consumer spending and technology demand. New business rose, but employment fell for a record-equaling 22nd month. Business confidence improved, while cost inflation eased despite ongoing geopolitical and logistics concerns.

China

China’s services growth slowed sharply in July, with the PMI falling to 50.4 amid weak domestic demand. Export orders and employment remained resilient, while cost pressures eased. Business confidence weakened, making recovery dependent on stronger domestic demand and sentiment.

United Arab Emirates (UAE)

UAE growth improved in July as confidence recovered and trade flows normalized, lifting the PMI to 52.7. However, Strait of Hormuz uncertainty kept costs high, while competition limited price increases. Inventories fell despite increased purchasing and longer delivery times.