Rising shipping costs are a significant and persistent driver of global inflation, according to new research from the International Monetary Fund (IMF), reported in its Chart of the Week.

The cost of shipping a container on major trade routes increased seven-fold in the 18 months following March 2020, with bulk commodity shipping costs spiking even higher. The IMF said these increases could raise inflation by 1.5 percentage points in 2022.



Studying data from 143 countries over 30 years, the IMF found that when freight rates double, inflation rises by about 0.7 percentage point. The effects peak after a year and can last up to 18 months.



Shipping costs are more volatile than fuel or food prices, and their impact on inflation is comparable to shocks in global oil and food markets. Higher shipping costs affect import prices within two months and quickly pass through to producer prices, while consumer prices peak after 12 months.



Countries that import more of what they consume, or pay higher freight costs-such as landlocked, low-income and island nations-are more vulnerable to inflation from rising shipping costs. Economies more integrated into global supply chains also face greater exposure.



The IMF said strong and credible monetary policy frameworks can help mitigate second-round effects. Anchoring inflation expectations is key to limiting the impact on core inflation measures.



The analysis predates the war in Ukraine but notes that the conflict is likely to exacerbate supply chain disruptions and prolong elevated shipping costs and their inflationary effects.

Chinese shipping firms are reshaping fleet deployments and leaning on global alliances to reduce exposure to US ports, as Washington prepares to impose steep new fees on Chinese-linked vessels in October, reported Hong Kong's South China Morning Post.

The levies, aimed at curbing China's dominance in global shipbuilding, are prompting carriers such as Cosco Shipping Holdings and Orient Overseas International Ltd (OOIL) to expand into regional markets and reroute services. Cosco reported growth in intra-Asia, Africa and Latin America routes in the first half of 2025, with transpacific volumes also rising 4.7 per cent.



OOIL acknowledged the impact of the new charges in its interim report, but said shifting trade patterns may offer opportunities to refine strategies in segmented markets. Analysts noted that Chinese carriers are working with alliance partners to reduce US exposure, particularly through the OCEAN Alliance, which includes CMA CGM and Evergreen Line.



Wu Jialu of Citic Futures said the alliance is expected to deploy more non-Chinese vessels on US routes to cut operating costs. Other alliances are also adjusting, with the Premier Alliance splitting a key service to remove Chinese-built ships from US West Coast calls.



Xu Yi of Haitong Futures warned that reduced deployment of Chinese-built vessels could lead to capacity shortages during peak seasons. He added that the fees may accelerate efforts to diversify shipping finance away from China.



Cosco Shipping Holdings, which also operates a global port network of 39 ports and 379 berths, posted revenues of CNY109.1 billion (US$15.3 billion) in the first half of 2025, up 7.8 per cent year on year. Profits rose nearly four per cent to RMB17.5 billion. The company is reportedly in talks to acquire assets from CK Hutchison.

China is positioning the inland city of Chongqing as a strategic hub for a high-speed rail corridor connecting Southeast Asia to Europe, offering a faster alternative to traditional sea routes, reported Hong Kong's South China Morning Post.

The overland route, served by daily freight trains, links countries such as Vietnam and Singapore to Germany and Poland. The ASEAN bullet train, launched in 2023, cut transit time between Hanoi and Chongqing to five days, with goods reaching Europe in under two weeks.



Chongqing has emerged as a logistics powerhouse, handling hundreds of shipments daily. It produces about one-third of the world's laptops and a quarter of China's cars, making it a key export centre for electronics and electric vehicles.



Analysts say the initiative has geopolitical motives. The trade war with the US and disruptions during the pandemic exposed vulnerabilities in maritime supply chains. China is now promoting a "Middle Corridor" via Kazakhstan and the Caspian Sea to bypass Russia and Western-controlled sea lanes.



Despite its promise, the corridor faces hurdles including customs delays, high costs, and infrastructure gaps. Many Belt and Road Initiative routes rely on government subsidies to remain viable for exporters.



Observers believe Chongqing's success could prompt similar investments in western China. If sustained, the model may redefine regional logistics and reduce reliance on maritime chokepoints such as the Suez Canal and the Straits of Hormuz and Malacca.

China's wind and solar power capacity has more than tripled since the end of 2020, advancing its carbon goals but raising challenges in integrating green electricity into the grid, reports Caixin.

Total installed capacity reached 1,680 gigawatts (GW) at the end of July, up from 530 GW in 2020, according to Li Chuangjun, director of new energy and renewable energy at the National Energy Administration (NEA). He said wind and solar accounted for nearly 80 per cent of all new energy capacity installed during the period.



In the first half of 2025, China's wind and solar farms generated 1.15 million gigawatt-hours of electricity, equivalent to nearly one-quarter of total national power demand, Mr Li said.

BMO's third-quarter transportation loan data showed modest improvement, though questions remain about the future of its trucking unit, reports New York's FreightWaves.

The Canadian bank's transportation group, which reportedly has 90 per cent of its business with trucking companies, saw gross loans and acceptances fall to US$13.67 billion - the lowest level since Q1 2023. The group peaked at $15.6 billion in Q4 2023.



Bloomberg reported earlier this month that BMO may sell its transportation unit, though the bank has not confirmed this. During the earnings call, CEO Darrell White did not address the group directly but said the bank was "optimizing through some low-return assets" and managing provisions for credit losses.



Provisions for credit losses in transportation rose to $50 million from $45 million in Q2, but remained well below the $77 million and $85 million recorded in Q3 and Q4 of 2024. Writeoffs fell to $32 million, the lowest in a year.



Allowances for credit losses rose to $66 million from $57 million. Gross impaired loans dropped to $424 million from $503 million in Q2 - an all-time high - returning to the same level as Q3 2024. For comparison, the figure in Q3 2022 was $72 million.



Analysts noted that while some indicators improved, others stagnated. The bank's muted response to divestiture speculation and shrinking loan book suggest a possible strategic shift away from transportation lending.

North American carload and intermodal traffic rose 2.7 per cent in the first 34 weeks of 2025, with gains in the US and Canada offsetting a decline in Mexico, reported New York's Railway Age.

According to the Association of American Railroads (AAR), total volume across nine reporting railroads in the US, Canada and Mexico reached 22,988,498 carloads and intermodal units for the period ending 23 August. US volume rose 3.5 per cent to 16,699,108 units, Canada increased 2.2 per cent to 5,499,570 units, while Mexico declined 8.4 per cent to 789,820 units.



For the week ending 23 August, US Class I railroads moved 512,333 carloads and intermodal units, down 0.8 per cent year on year. Carloads rose 0.6 per cent to 229,783, while containers and trailers fell 1.9 per cent to 282,550.



Four of 10 carload commodity groups posted weekly gains: grain rose by 1,723 carloads to 20,389; motor vehicles and parts increased by 1,001 to 17,681; and farm products excluding grain and food rose by 640 to 16,140. Declines were reported in petroleum products (down 1,068 to 9,769), coal (down 370 to 62,043), and miscellaneous carloads (down 249 to 9,100).



Year-to-date US totals included 7,514,403 carloads (up 2.6 per cent) and 9,184,705 intermodal units (up 4.2 per cent).



Combined North American rail traffic for the week ending 23 August totaled 692,598 units, up 5.6 per cent. This included 322,359 carloads (up 5.3 per cent) and 370,239 intermodal units (up 5.9 per cent).



Canadian railroads reported 80,067 carloads (up 23.8 per cent) and 73,564 intermodal units (up 47.7 per cent). Mexican railroads moved 12,509 carloads (down 3.6 per cent) and 14,125 intermodal units (up 18.6 per cent).

Oman's Salalah Port has completed a major expansion project that increases its annual container-handling capacity to 6 million TEU, positioning it as a leading transshipment hub in the region, reported the Oman Daily Observer.

The announcement was made during the Middle East Transport Forum 2025, held in Salalah from 31 August to 2 September. Ahmad Aubad Qatan, chief commercial officer of Salalah Port, said the upgrade aligns with Oman's Vision 2040 strategy to enhance its logistics sector.



The US$300 million investment expanded yard space and modernised berths, raising capacity from 4.5 million to 6 million TEUs. The port now operates six berths with a 2,197-metre quay and 18-metre draft, capable of accommodating the world's largest container vessels.



Salalah Port ranked second globally in the World Bank and S&P Global Container Port Performance Index for 2023. It handled 3.305 million TEUs in 2024, down from 3.794 million in 2023 and 4.504 million in 2022, according to official figures.



Qatan said the added capacity provides headroom for growth amid shifting shipping patterns and rising demand along east-west trade corridors. He emphasised the need for collaboration among shipping lines, logistics providers, and the adjacent industrial free zone to sustain performance.



The Middle East Transport Forum gathered senior policymakers, port operators, and logistics firms to discuss investment, resilience, and regional supply chain development. The event was hosted at Millennium Resort Salalah and supported by Oman's transport authorities.

Pacifica Shipping has acquired a larger vessel to meet rising demand for coastal and international transhipment services in New Zealand, reported London's SeaNews.

The 1,700-TEU Moana Chief will begin operations in September 2019 as part of Pacifica Shipping's premium coastal service. The move follows growing cargo volumes and aims to strengthen domestic and international transhipment capabilities. Pacifica was acquired by the China Navigation Company, parent of Swire Shipping in 2014.



Swire Shipping has operated in New Zealand for over 130 years and currently runs multiple liner and bulk services connecting the country to Australia, Asia, North America, Papua New Guinea and the Pacific Islands. Swire New Zealand Country Manager Brodie Stevens said the tonnage upgrade from 1,100 to 1,700 TEU will help meet increasing freight demand and expand domestic transport options.



Coastal shipping remains a vital part of New Zealand's transport network, complementing road and rail. A 2016 Deloitte report noted 236 million tonnes of freight are moved annually within the country. Larger vessels and coastal services are expected to reduce greenhouse gas emissions and support supply chain decarbonisation.



The National Freight Demand Study projects domestic freight volumes to more than double by 2040. The 2014 update confirmed that road and rail alone cannot handle the increase. Expanding coastal shipping is seen as essential to easing pressure on land transport. Japan, with similar geography, moves over 30 per cent of its freight by sea.

The New Mooring Container Terminal (NCT) at Chattogram Port handled 122,517 TEU in August, marking a 27.6 per cent rise from the same month last year. The surge follows operational improvements under Chittagong Dry Dock Limited (CDDL), which assumed management in July, reports Dakha's Business Standard.

Captain Zahid Hossain, chief operating officer of NCT, said the terminal's enhanced efficiency has reduced vessel turnaround times and waiting periods at the outer anchorage. These improvements have accelerated container handling and contributed to the record throughput.



He stated that if the current momentum continues, Chattogram Port could reach an annual handling capacity of 3.7 million TEU by end-2025, up from 3.275 million TEU in 2024. The target is supported by CDDL's equipment optimisation and maintenance practices.



Despite the growth, the port dropped to 68th in Lloyd's List One Hundred Ports 2025, overtaken by Saudi Arabia's Port of Dammam, which handled 3.290 million TEU. Chattogram Port had ranked 58th in 2019.



Chattogram Port processes over 90 per cent of Bangladesh's international trade. The New Mooring Terminal, launched in 2007 with five berths, is its largest container facility. Long-standing issues such as congestion and vessel delays have previously hindered performance.



The government has initiated reforms and public-private partnerships to improve port operations. Transferring terminal management to CDDL, a state-owned shipbuilding enterprise, is part of this strategy to enhance reliability and competitiveness.

Online fashion retailer Shein has been fined EUR150 million (US$175.61 million) by France's data watchdog for breaching cookie consent rules, a penalty the company said it would challenge, reported Reuters.

The Commission National de l'Informatique et des Libertes (CNIL) said Shein's French website placed tracking cookies on users' devices even when they had opted out, violating European Union data protection laws. The regulator conducted tests in August 2023 that confirmed the breach.



Under the EU's General Data Protection Regulation, cookies are classified as personal data due to their use in identifying individuals and targeting advertising. Websites must obtain explicit consent before placing them on users' devices.



Shein said it disagreed with the CNIL's findings and would appeal the decision. The company added that it remains committed to complying with data privacy regulations across its markets.

Chinese electric vehicle (EV) start-ups must accelerate deliveries in the coming quarters to meet break-even targets by 2025, as a fierce price war continues to pressure margins in the world's largest auto market, reports Hong Kong's South China Morning Post.

Nio, Xpeng and Zeekr posted narrower losses in the second quarter, aided by aggressive discounting that spurred demand for battery-powered cars over petrol models. Nio's loss fell 26 per cent quarter-on-quarter to CNY4.99 billion (US$699 million), while Xpeng cut its deficit by two-thirds to CNY480 million. Zeekr, a unit of Geely Automobile Holdings, reduced its loss by 88 per cent to CNY287 million.



Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity, said listed EV firms must curb losses as investor appetite for fresh funding wanes amid concerns over excess capacity. He warned that sustained heavy losses could force some players out of the highly competitive market.



The discount-driven sales strategy has helped boost volumes but threatens long-term profitability. Analysts say that unless delivery growth accelerates, many EV firms may struggle to reach financial targets and maintain investor confidence.



China's EV sector remains crowded, with dozens of start-ups vying for market share. Industry observers expect consolidation to intensify if firms fail to achieve scale and profitability in the next 18 months.

Istanbul Airport has surged from 47th to 17th place in global cargo rankings over five years, driven by infrastructure expansion, automation, and strategic positioning as a logistics hub, report Mumbai's STAT Trade Times.

According to Airports Council International, the airport handled 1.98 million tonnes of cargo in 2024, marking a 23.8 per cent year-on-year rise and a 289.6 per cent increase since 2019. The growth stems from targeted investments and partnerships with global carriers and integrators.



Central to the expansion is Cargo City, a 1.4-million-square metre complex with capacity for up to 5.5 million tonnes. The site includes eight temporary and four free storage zones, with Trendyol and FedEx nearing completion of dedicated facilities.



In 2024, 18 scheduled and 42 charter cargo carriers operated at the airport, alongside belly cargo from 116 passenger airlines. All three global integrators - DHL, FedEx and UPS - now maintain operations at Istanbul.



Turkish Airlines contributed significantly, moving 191,067 tonnes in July 2025 alone. For the first seven months of the year, volumes reached 1.21 million tonnes, with strong growth on Far East and North America routes.



SmartIST, Turkish Cargo's automated facility launched in 2022, supports 2.2 million tonnes annually. It features high-bay warehouses, automated retrieval systems, and specialised zones for pharmaceuticals, perishables and hazardous goods.



Chief operations officer Mehmet Buyukaytan said SmartIST's efficiency, combined with lower labour costs and competitive tariffs, gives Istanbul a strategic edge over older European hubs. The airport's layout also reduces ground time and boosts handling speed.



Buyukaytan added that Istanbul's rise reflects deliberate planning and execution. With advanced infrastructure and cost advantages, the airport is now a key node in global cargo and e-commerce logistics.

Maersk Air Cargo has expanded its network to South America, launching scheduled services to Colombia and Chile, and appointed two former DB Schenker executives to lead its air freight operations, reports New York's FreightWaves.

The cargo airline, owned by AP Moller Maersk, began flights from Greenville-Spartanburg International Airport in South Carolina to Bogota in March and from Chicago-Rockford International Airport to Santiago in May. Each route operates twice weekly using Maersk-owned Boeing 767-300 freighters, with flying outsourced to Amerijet.



Southbound flights carry e-commerce and general cargo, while return legs typically transport perishables and flowers. The fleet includes 10 Boeing 767-300s, two Boeing 777 freighters, and several Boeing 747-400s under long-term charter with Magma Aviation. Six Boeing 767-200s are operated separately under contract with express carriers in Europe.



Maersk handled 327,000 tons of cargo in 2024, an 11 per cent increase year on year, and aims to reach 500,000 tons by 2030. The airline ranks 15th globally by volume, according to Armstrong & Associates.



The company launched its airline post-Covid to support its transformation into an end-to-end logistics provider. Its network includes routes from China to the US and Europe, with hubs in Liege, Billand, and multiple US cities.



Maersk has appointed Christoph Hemmann as head of global air and less-than-containerload, replacing Murali Rajamani. Hemmann previously held senior roles at DB Schenker and DHL Global Forwarding. John McDonald, also formerly of DB Schenker, is the new head of Maersk Air Freight Forwarding, succeeding John Wetherell.

Singapore Airlines will permanently switch its cargo handling operations at Schiphol Airport to Swissport from 8 September, following operational issues with former provider dnata, reports London's Air Cargo News.

The airline said the decision follows dnata's move to a new facility at the Dutch hub in July, which led to data system problems and a backlog of cargo. Singapore Airlines temporarily transferred operations to Swissport to ease disruption, but has now made the change permanent.



"After more than five decades of partnership with dnata, this was not a decision we reached easily," the airline said in a note to customers. It thanked dnata for its past service and acknowledged the need for a more reliable solution.



Import cargo has already been redirected to Swissport, while export shipments booked from 8 September must be delivered to the Swissport facility. Swissport said the move reflects Singapore Airlines' commitment to dependable and seamless service.



dnata told Air Cargo News in mid-August that it had resolved the backlog and cleansed affected systems. The handler's new Cargo City Amsterdam terminal, launched in July, is designed to process over 850,000 tonnes annually and features automated storage and retrieval systems and guided vehicles for scalable ULD movements.

Korean Air has awarded Swissport a five-year contract to manage and modernise its long-standing freight facility at New York's JFK Airport, starting 1 September, reported Singapore's Payload Asia.

Under the agreement, Swissport will operate and sublease Cargo Building 9, a 232,500-square-foot terminal, and invest heavily in automation and eco-tech upgrades. Planned enhancements include an ETV system overhaul and new temperature-controlled storage, boosting annual throughput capacity from 200,000 to 295,500 tonnes.



Initial operations will begin with 80 staff, expanding to over 390 employees as the facility reaches full capacity. Swissport said the partnership marks its first large-scale collaboration at a single location and aligns with its commitment to operational excellence and customer service.



Nelson Camacho, chief executive of Swissport North America and Canada, said the company is pursuing IATA CEIV and GDP certifications and will introduce high-tech automation, transparent systems and enhanced safety protocols to elevate cargo handling standards at JFK.



Jaedong Eum, executive vice president of Korean Air Cargo, said Swissport shares the airline's values of professionalism, sustainability and long-term vision. He added that the partnership will establish a blueprint for future cargo operations at JFK.



Swissport will also deploy an all-electric ground support equipment fleet for freighter operations and install reliable charging infrastructure in collaboration with the Port Authority. Biodegradable products will be introduced to reduce plastic waste in cargo handling.



Ajay Barolia, executive vice president cargo at Swissport North America, said the strategy is built on safety, consistent service quality and transparency. Investments in automation and high-density racking systems will future-proof the facility and support growth.