The U.S. freight transportation market is entering its traditionally busy summer season amid shifting global logistics patterns, rising transportation costs, and ongoing geopolitical uncertainty. According to Flexport, more cargo is being routed through East Coast and Gulf Coast ports, with the Port of Houston emerging as one of the biggest beneficiaries of this trend.
During its latest market update, Flexport highlighted that both ocean and air freight markets are facing capacity constraints, higher fuel costs, and the lingering effects of international conflicts that continue to disrupt global supply chains.
West Coast Ports Lose Market Share
Following a strong performance in 2025, major West Coast gateways are showing signs of slowing activity. According to Flexport, import volumes through the Ports of Los Angeles and Long Beach declined by approximately 1.5% year-over-year.
Against this backdrop, Houston continues to expand its market share. Improvements to the Houston Ship Channel have enabled the port to accommodate larger container vessels, making it increasingly attractive to international carriers and cargo owners.
Industry analysts note that companies are reevaluating their logistics strategies and adapting supply chains to changing market conditions. As a result, more cargo is being redirected to East Coast and Gulf Coast ports, particularly Houston and Virginia.
Additional drivers include evolving warehousing strategies, continued growth in direct-to-consumer fulfillment models, and adjustments to trans-Pacific shipping services.
Houston Continues to Gain Momentum
According to SONAR data, which tracks ocean freight booking activity into the United States, cargo bookings destined for Houston are growing faster than those heading to California’s major ports.
Over the past year, booking volumes into Houston have increased by 7.2%, reinforcing the ongoing redistribution of freight flows across the U.S. logistics network.
A particularly notable surge in activity occurred in mid-March following the escalation of tensions between the United States and Iran, prompting many shippers to reassess existing transportation routes.
Global Disruptions Continue to Pressure Supply Chains
Beyond domestic market shifts, the logistics industry continues to face a wide range of international challenges.
- Congestion at European ports;
- Export bottlenecks affecting agricultural shipments from South America;
- Ongoing instability in the Middle East;
- Disruptions along critical global shipping routes.
According to Flexport, the situation surrounding the Strait of Hormuz remains a significant concern for global trade. Restrictions in the region continue to affect major logistics hubs across the Middle East and are forcing carriers to seek alternative routing options.
Ocean Carriers Tighten Capacity
The market is also facing pressure from reduced vessel capacity.
In May, many shipping lines canceled sailings on eastbound trans-Pacific routes during China’s Labor Day holiday period. As a result, available vessel space declined, creating a significantly tighter supply-demand balance.
Industry experts expect capacity utilization to improve toward the end of May and into early June. However, ongoing service disruptions could limit the impact of additional vessel deployment.
Whether June will mark the beginning of an early peak shipping season remains an open question. Nevertheless, carriers continue to face rising operating expenses and elevated fuel prices, both of which are supporting higher ocean freight rates.
Analysts believe market participants should prepare for elevated freight costs to persist in the near term.
Air Cargo Rates Remain Elevated Despite Lower Volumes
The air freight market presents a similarly intriguing picture.
After several weeks of rate increases, the market has entered a holding pattern. Global air cargo rates have stabilized at approximately $3.29 per kilogram.
At the same time, a notable disconnect has emerged between pricing and demand: cargo volumes have declined, while freight rates remain elevated.
Industry experts attribute this trend to persistent geopolitical risks and record-high aviation fuel costs. Airlines continue to face route adjustments, increased insurance expenses, and uncertainty surrounding access to certain airspace corridors.
According to Flexport, jet fuel prices are currently at their highest levels in more than two decades, significantly increasing transportation costs across global air cargo networks.
Market Braces for a Challenging Summer
Shipping lines have so far managed to sustain General Rate Increases introduced in May, supported by limited vessel availability and steady shipping demand.
Over the coming months, industry stakeholders will closely monitor developments in the Middle East, the resilience of global supply chains, and importer activity ahead of the traditional fall shipping season.
For now, the dominant trend in U.S. logistics remains the gradual shift of cargo flows away from the West Coast and toward East Coast and Gulf Coast gateways, with Houston continuing to strengthen its role as one of the nation’s most important logistics hubs.
