Asia-Pacific Logistics Monthly Monitoring: April 2026

Introduction

In April 2026, the Asia-Pacific logistics market presented a diverging landscape under the combined impact of geopolitical conflicts and structural overcapacity. The Middle East situation remained tense, with navigation through the Strait of Hormuz disrupted, causing significant shocks to global sea and air freight networks. Meanwhile, intra-Asian trade demonstrated resilience, with freight rates on some routes rising against the trend. This article is based on Ti Insight's latest release, "Asia Pacific Monthly Logistics Monitor: April 2026," and reviews the month's key developments and their deeper implications for supply chains.

Ocean Freight: Middle East Conflict and Overcapacity Intertwined

Strait of Hormuz Disrupted, Regional Port Congestion Intensifies

The U.S.-led naval blockade and the conflict involving Iran have severely disrupted transit through the Strait of Hormuz, with the number of vessel transits dropping sharply and multiple shipping lines suspending bookings related to the Gulf region. This situation has directly pushed up congestion levels at regional hub ports.

According to industry monitoring data, the average waiting time at Malaysia's Port of Tanjung Pelepas reached 1.5 days; the Port of Manila experienced delays of 3 to 4.4 days due to excessively high yard density. In South Asia, the waiting times at the Port of Colombo and Jawaharlal Nehru Port were 1.5 days and 2.6 days, respectively, while the Port of Karachi averaged as high as 5.5 days, becoming the most severe bottleneck in the region.

Diverging Freight Rate Trends, Carriers Adjust Capacity

Although the global container freight rate index has eased recently, intra-Asian trade remained tight, with rates on multiple intra-regional routes rising in late April. To cope with the pressure of record new vessel deliveries in 2026, carriers have widely adopted blank sailing strategies to manage capacity supply.

Small and medium-sized non-alliance carriers are accelerating their exit from transpacific routes. Sea-Intelligence analysis notes that weak demand and falling freight rates have significantly compressed profit margins for independent operators.

Soaring Fuel Costs Trigger Surcharges

Middle East disruptions pushed bunker fuel prices to record highs in early April. ZIM announced a new bunker fee (NBF), up to USD 850 per container, effective May 1.

New Routes and Network Adjustments

CMA CGM launched the weekly direct service "Ocean Rise Express" on April 2, connecting Japan, South China, and Northern Europe, with a transit time of 38 days from Yokohama to Rotterdam, for example. This route layout reflects carriers' efforts to seek alternative routes and differentiated services against the backdrop of disrupted traditional routes.

Air Freight: Widening Capacity Gap, Soaring Fuel Prices

Middle East Conflict Causes Capacity Losses ## Air Freight: Capacity Gap Widens, Fuel Prices Surge

Middle East Conflict Reduces Capacity

The Middle East conflict has reduced global air freight capacity by approximately 12% to 20%. Key hubs such as Dubai and Doha face operational constraints, forcing airlines to take longer northern or southern corridors. Baltic Exchange data shows this shift has already been reflected in freight rates, particularly on Asia–Europe routes. Hong Kong-to-Europe rates rose 8.63% and Shanghai-to-Europe rates rose 2.79%, while no significant growth has been seen on the demand side. Analysts noted: "The rate increase is more attributable to reduced supply than to stronger demand, indicating a structurally tightening market."

Fuel Prices Surge, Surcharges Remain High

Jet fuel prices soared from about $95 per barrel in February to nearly $197 per barrel by the end of March, prompting carriers to introduce hefty fuel surcharges. In the Taiwan market, according to Dimerco, disruptions via Middle East hubs and rising fuel surcharges have pushed air freight rates up by about 20% to 30%, particularly affecting electronics and urgent cargo.

Cargo Shifts to Chinese Hubs

Due to high fuel costs and insufficient capacity, an estimated 15% of cargo originally departing from Southeast Asian hubs is shifting to major Chinese airports to take advantage of more stable direct flights to Europe and the United States. Operating data from BSI Global Logistics also shows that rerouting around Middle East airspace increases flight times by 1 to 3 hours and total transit times by 1 to 3 days. Booking delays on key Asia–Europe routes have reached 3 to 7 days.

In markets such as India, air freight rate validity lasts only 24 to 48 hours, forcing shippers to confirm immediately to avoid price jumps or warehousing costs. Meanwhile, Navoi International Airport in central Uzbekistan is accelerating its expansion, emerging as a new hub for Eurasian cargo flows.

Land Transport and Multimodal Transport: Clear Regional Divergence

Market Performance: Southeast Asia and India Lead

According to DSV, India and Southeast Asia's Vietnam and the Philippines are outperforming the broader Asia-Pacific region, while North Asia and Singapore show weaker momentum. In road transport, feeder services in the Gulf region have been expanded to support distribution demand arising from air and sea freight disruptions.

Infrastructure Investment Accelerates

The Asian Development Bank released a report highlighting the shared growth potential of the "Borderless Borders" initiative in Central Asia and the Almaty–Bishkek Economic Corridor. Ho Chi Minh City in Vietnam plans to launch 14 major transport projects in 2026, including Ring Road No. 4, a cross-sea bridge to Ba Ria–Vung Tau, and the dredging of the Van Thanh Canal. Mumbai, India, also launched several major transport infrastructure projects on April 7.

The China–Kyrgyzstan–Uzbekistan railway project continues to advance with an investment of $4.7 billion, targeting 15 million tonnes of direct cargo per year. Sinotrans and SF Express announced a joint investment of RMB 150 million (about $22 million) to build an air-ground freight center in Xi'an, aimed at cross-border e-commerce logistics.

Fuel Cost Pressure Intensifies By late March and early April, the Indonesian Logistics Association (ALI) warned that rising global oil prices could make fuel costs account for as much as 70% of total transport costs for long-haul road transport (over 500 km). The Thai government introduced emergency measures on April 1 to stabilize the freight industry.

Warehousing and Logistics: Automation and Regional Expansion in Parallel

Japanese Market Remains Resilient

According to CBRE data, warehouse vacancy rates in Japan's Tokyo metropolitan area are trending downward, while the Osaka metropolitan area maintains steady occupancy rates driven by domestic demand.

Thailand Steps Up Cold Chain Facilities

JWD InfoLogistics plans to put into operation a cold chain facility with an investment of 450 million baht in the second quarter of 2026, as part of its regional expansion. At present, at least three projects involving 25,000 pallet positions are underway to meet the 200% growth in modern cold chain demand.

Vietnam Logistics Restructuring

Effective April 1, Gemadept and CJ Logistics adjusted their strategic cooperation: CJ Logistics fully owns and operates the third-party logistics business, focusing on IT-driven distribution centers; Gemadept, in turn, holds a 49% stake in Mekong Logistics (cold chain) and fully owns its shipping business, implementing a "container-centric" strategy.

Accelerated Deployment of Robot Warehouses

In April, Cainiao Network continued to advance the deployment of a new generation of robot warehouses, covering Hong Kong and mainland China. These facilities employ AI scheduling systems to coordinate large-scale autonomous mobile robots (AMRs), significantly improving the storage density of bulky e-commerce goods.

China Adjusts Export Tax Rebate Policy

Effective April 1, China canceled the export VAT rebate for photovoltaic products and reduced the rebate rate for batteries from 9% to 6%, which is expected to affect the logistics flows and trade costs of these high-value goods.

Supply Chain Impact and Regional Outlook

The Middle East conflict is the biggest uncertainty facing Asia-Pacific supply chains. The simultaneous contraction of sea and air capacity, increased detour costs, and soaring fuel surcharges have significantly raised transport costs on Asia-Europe routes, affecting the timeliness and reliability of global supply chains. Intra-Asian trade remains relatively resilient, with freight rates rising on some routes, reflecting the deep integration of regional industrial chains.

Port congestion has spread from Malaysia to Pakistan, with vessel waiting times lengthening and schedule reliability declining. In air freight, the capacity gap will be difficult to fill at least in the short term, and cargo volumes are shifting to Chinese hubs, which may reshape Asia's air cargo landscape.

In the long term, infrastructure investments such as the China-Kyrgyzstan-Uzbekistan railway, new transport projects in Vietnam, and the expansion of cold chain and automated warehouses will enhance regional supply chain resilience. However, geopolitical risks, fuel price volatility, and capacity oversupply remain persistent challenges for the industry.

Industry PerspectivesInternational Air Transport Association (IATA) Director General Willie Walsh, speaking on air cargo performance in the early stages of the Iran war, said that the fundamentals of the air cargo market are very strong and that the industry has the capacity to cope with current disruptions. However, Korean airlines have asked the government to restrict aviation fuel exports over concerns about fuel supply shortages, underscoring the impact of energy security on critical logistics nodes.

In addition, the political dispute over port operating rights around the Panama Canal has produced spillover effects, with reports that Chinese ports have begun stepping up inspections of vessels flying the Panamanian flag, placing additional strain on the stability of trade corridors.

Future Outlook

Looking ahead to the remainder of 2026, the Asia-Pacific logistics market will depend mainly on how the Middle East situation evolves. If the Strait of Hormuz remains blocked for an extended period, shipping lines and airlines may further adjust their network structures, pushing regional hubs westward. Meanwhile, pressure from new vessel deliveries will persist, and carriers will rely more heavily on blank sailings and capacity alliances to sustain freight rates.

On the technology front, AI dispatching, robotic warehousing, and digital freight platforms will accelerate their penetration to hedge against labor costs and operational uncertainty. As the China-Central Asia-Europe railway corridor advances, multimodal transport may become one of the options for some shippers to replace air and sea freight.

Conclusion

In April 2026, the Asia-Pacific logistics market presents a complex picture caught between geopolitical conflict and overcapacity. In the short term, Middle East issues have pushed up transportation costs and extended transit times, forcing shippers and freight forwarders to re-examine route choices and inventory strategies. In the medium term, regional infrastructure investment and technological upgrades are expected to improve the adaptability of supply chains, but the industry must still remain vigilant against the deep shocks that sudden geopolitical events can inflict on the global trade network.