Freight Rates Climb Amid Summer Demand and Geopolitical Tensions — What Shippers Should Know

Freight Rates Climb Amid Summer Demand and Geopolitical Tensions — What Shippers Should Know

Indonesia, July 2025 – Global freight rates are on the rise, with average costs increasing by 5–7% across major trade lanes. Industry experts attribute the surge to a combination of peak seasonal demand, tight capacity, and geopolitical disruptions, signaling a challenging quarter ahead for exporters and importers worldwide.

Summer Demand Fuels Rate Increases

The annual mid-year shipping rush is in full effect. As manufacturers and retailers ramp up orders for the second half of the year, vessel space is tightening across Asia, Europe, and the Americas. Carriers have responded with rate hikes, limited sailing schedules, and tighter booking windows.

“Summer is always a high-volume season, but this year we’re seeing an earlier and sharper increase,” said a spokesperson from Forin Logistics. “Shippers need to plan further ahead than usual.”

Geopolitical Unrest Adds Complexity

Tensions between Israel and Iran have further strained global logistics. The Strait of Hormuz, a crucial corridor for international oil shipments, is facing potential disruption. The resulting rise in fuel prices is pushing freight costs even higher and raising concerns about routing through affected regions.

Supply chain delays are being reported across the Middle East and South Asia, with some carriers exploring alternative routes to maintain schedule reliability.

Strategic Planning More Important Than Ever

With demand outpacing available capacity, industry players are urging businesses to act quickly.

“We strongly recommend booking shipments in advance and maintaining flexibility with routing,” the Forin team advises. “Close coordination with your logistics partner is key to avoiding delays and inflated costs.”

Looking Ahead

Freight rates are expected to remain elevated through Q3, especially if geopolitical tensions escalate or fuel prices continue to rise. Shippers are encouraged to stay informed and work with experienced forwarders to navigate the uncertainty.

Forin Logistics continues to monitor developments closely and offers tailored freight solutions for clients seeking stability in a volatile market.

Need help planning your Q3 shipments?
Contact Forin team (+62 812 9999 0069) for a personalised freight consultation.

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