al sharqi shipping co llc logistics supply chain market update june 2026

June 10, 2026

Supply Chain & Logistics Update – June 2026

India‑Oman CEPA Enters into Force

The India‑Oman Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on June 1, 2026, marking a fresh chapter in bilateral economic ties between India and Oman.

The pact was originally signed in Muscat on 18 December 2025 and ratified by Oman via Royal Decree earlier this year.

What the CEPA Means for Trade?

Reduced tariffs improve market access: Oman and India have agreed to lower or eliminate tariffs on many products, enhancing trade competitiveness for businesses in both countries.

Bilateral trade growth: Total trade between India and Oman reached about US$11.18 billion in FY 2025‑26, up from roughly US$10.61 billion in the prior year.

Opportunities for Omani Businesses

The agreement provides a framework for diversifying Oman’s export base beyond traditional energy products. It targets sectors such as:

petrochemicals and chemicals
fertilizers and urea
metals and mineral products
plastics and polymers
pharmaceuticals and selected industrial goods

Lower duties are expected to strengthen Omani exporters’ competitiveness in India’s large consumer and industrial market.

For businesses operating through a distribution center in UAE, this CEPA opens up meaningful possibilities. The UAE’s established role as a regional distribution center hub means that goods moving between Oman and India will increasingly pass through UAE ports and logistics corridors, adding new layers of opportunity for freight forwarding companies in UAE managing these bilateral flows. The CEPA’s implementation could reshape how supply chains are structured across the Gulf, reinforcing the Emirates’ position as a gateway into both South Asian and African markets.

June 2026 Ocean Shipping Market Overview

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

Outbound

Middle East – Europe

Europe inbound ocean freight remains under pressure from Middle East uncertainty, tight Rotterdam operations, high dangerous goods yard density at key ports, Antwerp weather disruption, and UK ETS planning requirements.

Capacity – (-)

Rate – (+)

Middle East – Latin America

Stable port operations, controlled yard occupancy, respected berthing windows, and the new Itajai call support reliable inbound flows across Latin America.

Capacity – (+)

Rate – (=)

Middle East – North America

North America inbound ocean freight faces tight capacity from strong Asia demand, controlled sailings, and uneven ISC volumes, while Trans-Atlantic conditions remain broadly balanced.

Capacity – (-)

Rate – (=)

Inbound

Asia – Middle East

Strong volumes out of Asia are driving ocean freight services demand growth, with year-to-date demand up 4% in 2026 across major trade routes.

Capacity: (-)

Rate: (+)

Europe – Middle East

Europe outbound ocean freight faces pressure from Strait of Hormuz uncertainty, Rotterdam operational constraints, dangerous goods yard density, Antwerp weather disruption, and new direct routing options into Egypt and the East Mediterranean.

Capacity – (-)

Rate – (+)

Latin America – Middle East

Stable export flows, planned vessel connections, added Itajai routing, and expanded Brazil depot capacity support reliable outbound dry and refrigerated cargo movement.

Capacity – (+)

Rate – (=)

June 2026 Air Freight Insights and Forecast

Demand: Global cargo demand is slowing sharply; CTK growth is forecast at 0.7% in 2026, down from 3.4% in 2025, despite resilient e-commerce and semiconductor demand.

Capacity: Capacity remains tight, with passenger belly capacity up only 1.5% YoY versus freighters at 5.1%, pushing load factor to 46.4% in Q1 2026.

News: Middle East hub disruption is reshaping global cargo flows, reducing effective capacity and shifting adjustment toward higher yields rather than volume growth. For importers and exporters relying on air freight services in Dubai, this tightening is being felt directly in lead times and booking availabilit

The Middle East and Air Carriers

Middle East air freight is under pressure as disruptions cut hub capacity and divert flows. Global cargo growth is only 0.7% in 2026, with reduced bellyhold space driving tight supply. Limited capacity is lifting yields even as volumes fall. Regional carriers face net losses in 2026, with higher unit costs and weaker transfer traffic.

Asia

Asia Pacific carriers are leading air cargo growth amid global disruption. Strong Asia‑linked trade helped global cargo demand rise about 4.0% in April, with Asia showing the most resilient volumes as other hubs tighten capacity. Asia Pacific’s expansion supports overall market stability even as global growth slows to roughly 0.7% in 2026.

America

America’s air freight outlook is mixed. North America is projected to grow only 0.7% YoY, while Latin America is expected to decline 2.5% YoY. Asia-North America traffic remains positive but subdued, with cargo shifting toward Asia-Europe. Global freight rates are forecast to rise 6.5%, reflecting tighter capacity rather than stronger volume growth.

Europe

Europe’s air freight environment shows slower growth and rising costs. European airlines’ demand is weaker, with capacity rising only 1.3% versus 5.2% last year, while profit margins shrink to 3.1%. Heavy reliance on 60% imported jet fuel, mainly from the Middle East, adds cost pressure and weakens competitive positions amid rising charges and airspace limits.

June 2026 Shipping Insights for the UAE

West African ports Tema and Abidjan face major delays due to full storage, limited docking, and equipment shortages; Pointe Noire stable but equipment imbalance persists. Read More

Maersk is launching a Seasonal Transpacific (TPX) service connecting Vietnam and South Korea to the U.S. West Coast, starting June 9, 2026, through the end of Q3. Read More

Maersk is launching the FI2 service connecting Far East Asia to Northwest India and Pakistan, starting June 4, 2026, enhancing direct coverage and routing options. Read More

Maersk is reducing the Emergency Contingency Surcharge for Indian Subcontinent to North Europe trade, effective 20 May 2026, lowering rates across all container types. Read More

Maersk is reducing the Emergency Contingency Surcharge for Indian Subcontinent to North Europe trade, effective 20 May 2026, applying new lower rates to all container types. Read More

Global Factory Output – Overview

The World Container Index (WCI) has increased by 23% for 40ft containers and reached $3,433. For shipping companies in UAE and their clients, this rise in container costs underscores the importance of planning cargo moves early and locking in capacity where possible.

United States of America (USA)

US sector PMI data showed four of seven sectors recorded business activity growth in May, down from five in April. Healthcare led the rankings with the fastest expansion in four-and-a-half years. Basic Materials and Consumer Goods also grew strongly, helped by front-loaded orders, while Financials, Technology and Consumer Services reported modest declines.

United Kingdom (UK)

UK service sector activity contracted in May as weak domestic and overseas demand weighed on performance. Middle East conflict disrupted sales pipelines, while hospitality and transport faced squeezed spending and rising costs. Professional services saw client caution, though technology investment stayed resilient. Inflation pressures and geopolitical risks further reduced business optimism.

China

China’s services sector expanded faster in May 2026, with the RatingDog PMI rising to 54.4. New business grew for the forty-first month; exports returned to growth, and employment increased. Input cost inflation accelerated but remained manageable, allowing stable pricing. Firms stayed optimistic, supported by better market conditions and new projects.

United Arab Emirates (UAE)

UAE economic activity was disrupted in May by continued maritime trade cut-offs, causing the worst delivery delays since April 2020 and weighing on export orders. New business growth stayed below trend, while firms absorbed higher fuel and material costs amid weak demand. Businesses with access to reliable warehouse storage services and resilient supply chain partnerships were better positioned to absorb these disruptions without cascading delays downstream. Despite near-term pressures, business outlook remained strong.