Business / Logistics And Shipping
Follow logistics and shipping trends, supply chain changes, freight dynamics and global trade signals through curated business analysis.
Divya James on Freight Volatility, Tariffs & Air Cargo Demand in 2026
Summary
Freight markets are experiencing significant volatility due to geopolitical tensions and tariff changes, which create both challenges and opportunities for logistics providers. The air cargo sector is witnessing strong demand, particularly for healthcare products, while the supply and demand balance in India's trade lanes to Europe and the US remains stable.
The India-Europe free trade agreement is transforming India's role from an optional to a preferred logistics partner, enhancing trade volumes. Companies are increasingly adopting digital tools and automation to improve visibility and forecasting in logistics operations.
Customer demand for end-to-end multimodal solutions is rising as businesses seek to optimize inventory management and reduce costs. Sustainability is becoming a critical focus, with logistics providers investing in measures to address emissions and promote greener practices.
Despite the positive outlook from the free trade agreement, continued volatility in the logistics sector is expected. The ability of logistics providers to adapt quickly to changing market conditions will be crucial for maintaining stability and meeting customer needs.
Perspectives
short
Proponents of Trade and Digitalization
- Highlight the strong demand for healthcare products in air cargo
- Argue that the India-Europe free trade agreement enhances Indias logistics role
- Emphasize the importance of digital tools for improving logistics efficiency
- Propose that sustainability initiatives are essential for future logistics operations
- Claim that customer demand for multimodal solutions is increasing
Skeptics of Market Stability
- Question the long-term effectiveness of the free trade agreement
- Critique the reliance on digital tools without addressing infrastructure challenges
- Doubt the ability of logistics providers to manage ongoing volatility
Neutral / Shared
- Acknowledge the ongoing volatility in the logistics market
- Recognize the need for logistics providers to adapt to changing conditions
Metrics
demand
the healthcare which is seeing an increase on the volumes units
air cargo sector demand
Indicates a strong market for healthcare logistics.
Mostly what we hear from our customers is the healthcare which is seeing an increase on the volumes which is moving.
overcapacity
we don't see a overcapacity at the moment units
Indian trade lanes performance
Suggests a stable market environment for logistics.
we don't see a overcapacity at the moment which is on the long hulls which is primarily Europe and US.
tariff impact
the Trump tariff revisions which we have been hearing for the last one week units
impact on air cargo demand
Highlights the influence of tariffs on logistics operations.
it is also to do with the Trump tariff revisions which we have been hearing for the last one week.
Key entities
Timeline highlights
00:00–05:00
Geopolitical tensions and tariff changes are creating volatility in air and ocean freight markets, presenting both challenges and opportunities for logistics providers. Strong demand for healthcare products is driving the air cargo sector, while India's trade lanes to Europe and the US currently show balanced supply and demand.
- Geopolitical tensions and tariff changes are causing significant volatility in air and ocean freight markets, creating both challenges and opportunities for logistics providers
- Strong demand for healthcare products is driving the air cargo sector, with recent tariff revisions prompting urgency among shippers
- Indias trade lanes to Europe and the US currently show balanced supply and demand, with no signs of overcapacity at this time
- CEVA Logistics is helping clients manage tariff-related supply chain adjustments by offering tailored solutions that address specific industry needs
- A potential free trade agreement between India and Europe could boost air and ocean freight volumes, presenting a significant opportunity for logistics providers
- The logistics landscape requires companies to be adaptable and strategically plan to navigate ongoing market fluctuations and capitalize on new opportunities
05:00–10:00
The India-Europe free trade agreement is enhancing India's role in global logistics by increasing trade volumes and partnerships. Companies are prioritizing sustainability and investing in digital tools to improve logistics efficiency and customer communication.
- The India-Europe free trade agreement is elevating Indias status in global logistics, increasing trade volumes and strengthening partnerships
- Investing in digital tools and automation is crucial for enhancing visibility and forecasting in logistics, enabling timely and transparent customer communication
- Customers are increasingly seeking end-to-end multimodal solutions, allowing logistics providers to offer flexible service combinations tailored to diverse inventory needs
- Sustainability is becoming a priority in global trade, with companies focusing on emission reductions through investments in biofuels and zero-emission initiatives
- The logistics sector is facing ongoing volatility, making it essential for providers to adapt swiftly to meet evolving customer demands
- Tariff impacts are driving companies to explore alternative sourcing options, placing logistics providers in a key position to help mitigate associated risks