Dimerco: Rising Air Freight Costs Shift Cargo to Sea and Rail Transport
According to freight forwarder Dimerco, due to restrictions on passage through the Strait of Hormuz and rising air fuel costs, some cargo is shifting to sea, rail, or sea-air intermodal transport.
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- 📰 Published: May 6, 2026 at 11:48
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Central News Agency (CNA) Correspondent Chiang Ming-yen, Taipei, 6th) Freight forwarder Dimerco stated that due to restrictions on passage through the Strait of Hormuz, congestion at major transshipment hubs in Asia is escalating. Some companies are arranging shipments earlier to avoid fuel surcharges and pre-holiday shipping pressure. With rising air fuel costs, some cargo volume is shifting to sea, rail, or sea-air intermodal transport.
Dimerco announced its preliminary consolidated group revenue for April was NT$2.84 billion, a 12% year-on-year increase. Driven by customer shipping demand, air cargo volume increased by nearly 20% year-on-year, while sea cargo volume slightly decreased compared to the same period last year.
Dimerco stated that for the first four months of this year, the group's air cargo volume increased by approximately 20% year-on-year, and sea cargo volume increased by nearly 10% year-on-year, with consolidated operating revenue reaching NT$9.89 billion, a 3.8% year-on-year increase. This shows that operations maintain a certain resilience despite freight rate pressure and market fluctuations.
Dimerco observed that recent geopolitical tensions in the Middle East have elevated security risks in the Persian Gulf and surrounding airspace and shipping lanes. Due to restrictions on passage through the Strait of Hormuz and potential blockade risks, regional capacity deployment has changed and started to spill over to major transshipment hubs in Asia, leading to increased port congestion.
Dimerco further explained that India, Sri Lanka, Singapore, Malaysia, Indonesia, and the Philippines are all affected to varying degrees, further impacting regional transport efficiency and adding uncertainty to the global logistics system.
Dimerco pointed out that with rising energy prices and increasing air fuel costs, airlines have successively adjusted fuel surcharges and flight configurations, driving up overall logistics costs. In this situation, there is a trend of reconfiguring transport modes in the market, including some cargo volume shifting to sea, rail, or sea-air intermodal solutions, to strike a balance between cost and timeliness. The complexity of overall supply chain decisions continues to increase.
In terms of the air market, Dimerco noted that AI-related cargo continues to drive import demand in the United States, but due to the situation in the Middle East, some passenger flights have been reduced, compressing belly cargo capacity, especially on routes from Asia to Europe. Coupled with continuous increases in fuel surcharges, logistics costs are showing an upward trend.
In terms of sea freight, Dimerco stated that the situation in the Persian Gulf remains tense, with some companies arranging shipments earlier to avoid fuel surcharges and pre-holiday shipping pressure, leading to increased congestion at major transshipment hubs in Asia, further intensifying market capacity pressure.
Due to fluctuating fuel costs, shipping companies continue to adjust spot freight rates, with more significant increases on high-demand routes. However, on relatively weak demand routes, there is a coexistence of increased freight rates and declining demand. Fuel costs at major bunkering hubs continue to rise, and if the situation does not improve, there may be a risk of supply shortages in the future, further affecting shipping companies' adjustments in freight rates and service networks. (Edited by Chang Liang-chih) 1150506
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Dimerco announced its preliminary consolidated group revenue for April was NT$2.84 billion, a 12% year-on-year increase. Driven by customer shipping demand, air cargo volume increased by nearly 20% year-on-year, while sea cargo volume slightly decreased compared to the same period last year.
Dimerco stated that for the first four months of this year, the group's air cargo volume increased by approximately 20% year-on-year, and sea cargo volume increased by nearly 10% year-on-year, with consolidated operating revenue reaching NT$9.89 billion, a 3.8% year-on-year increase. This shows that operations maintain a certain resilience despite freight rate pressure and market fluctuations.
Dimerco observed that recent geopolitical tensions in the Middle East have elevated security risks in the Persian Gulf and surrounding airspace and shipping lanes. Due to restrictions on passage through the Strait of Hormuz and potential blockade risks, regional capacity deployment has changed and started to spill over to major transshipment hubs in Asia, leading to increased port congestion.
Dimerco further explained that India, Sri Lanka, Singapore, Malaysia, Indonesia, and the Philippines are all affected to varying degrees, further impacting regional transport efficiency and adding uncertainty to the global logistics system.
Dimerco pointed out that with rising energy prices and increasing air fuel costs, airlines have successively adjusted fuel surcharges and flight configurations, driving up overall logistics costs. In this situation, there is a trend of reconfiguring transport modes in the market, including some cargo volume shifting to sea, rail, or sea-air intermodal solutions, to strike a balance between cost and timeliness. The complexity of overall supply chain decisions continues to increase.
In terms of the air market, Dimerco noted that AI-related cargo continues to drive import demand in the United States, but due to the situation in the Middle East, some passenger flights have been reduced, compressing belly cargo capacity, especially on routes from Asia to Europe. Coupled with continuous increases in fuel surcharges, logistics costs are showing an upward trend.
In terms of sea freight, Dimerco stated that the situation in the Persian Gulf remains tense, with some companies arranging shipments earlier to avoid fuel surcharges and pre-holiday shipping pressure, leading to increased congestion at major transshipment hubs in Asia, further intensifying market capacity pressure.
Due to fluctuating fuel costs, shipping companies continue to adjust spot freight rates, with more significant increases on high-demand routes. However, on relatively weak demand routes, there is a coexistence of increased freight rates and declining demand. Fuel costs at major bunkering hubs continue to rise, and if the situation does not improve, there may be a risk of supply shortages in the future, further affecting shipping companies' adjustments in freight rates and service networks. (Edited by Chang Liang-chih) 1150506
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The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.