Even though the year has just begun, businesses across Southeast Asia are already gearing up for another cycle of peak season logistics challenges. With the recent conclusion of Chinese New Year, and now with Eid looming, freight costs have been on the rise.

The demand surges of the festive season are nothing new, but in 2025, businesses face additional hurdles—higher global shipping costs, persistent port congestion, and geopolitical challenges including tariffs. This article unpacks the latest trends affecting freight costs and three smart strategies to keep your business prepared.

Why Are Freight Costs Higher During the Festive Season?

Cultural Spending and e-Commerce Boom

Southeast Asia's back-to-back festive periods—including Christmas, Chinese New Year, Eid, and monthly marketplace sales like 2.2 and 3.3—continue to drive e-commerce spending to record highs. The region’s cultural diversity means businesses must prepare for multiple sales peaks throughout the year, with early stockpiling leading to inflated logistics costs.

In 2023, e-commerce revenue in the region grew by 22% year-on-year, reaching $28 billion. This surge has prompted carriers to impose peak season surcharges, driving up freight costs during the holiday rush.

Port Congestion and Global Supply Chain Disruptions

While some post-pandemic pressures have eased, port congestion remains a challenge in key Southeast Asian hubs. A global container shortage and peak season demand are driving longer dwell times and higher freight costs. For example, during Chinese New Year, manufacturers rushed to clear shipments, causing container booking rates to surge.

At the same time, U.S. tariffs on Chinese imports have pushed more manufacturing to Southeast Asia, increasing port traffic in countries like Vietnam and Indonesia. Higher shipping volumes and rerouted trade flows are adding pressure to already congested ports, keeping freight costs volatile.

Infrastructure Bottlenecks, Labor Shortages, and Monsoon Season

In developing countries like Indonesia, ongoing infrastructure improvements are often overshadowed by persistent challenges, including damaged roads and an aging transport fleet. 

Labor shortages only add fuel to the fire during peak seasons. In Malaysia, a lack of skilled workers, such as barge captains and truck drivers, strains logistics, particularly in rural areas. In Singapore, the logistics sector faces an ongoing shortage of skilled labor, especially in supply chain management, as demand for logistics services continues to rise.

Meanwhile, monsoon season overlaps with peak demand—disrupting ports, delaying trucks, limiting road access and increasing costs—adding further pressure to an already stretched logistics network.

3 Smart Strategies to Navigate Festive Freight Challenges

1. Secure Freight Capacity Early: Peak season demand drives up freight costs, with carriers imposing surcharges due to limited capacity. Booking shipments months in advance ensures better rates and minimizes delays.
   
   Strong relationships with carriers can also help secure priority space. Work with your freight forwarder to plan the best shipping schedule for your business.
   
   
2. Opt for Comprehensive Logistics Support: Southeast Asia’s diverse regulations,  tariffs and local nuances make festive shipping complex. A freight partner with strong regional expertise helps avoid customs delays and secures alternative transport during peak periods.
   
   Beyond just moving goods, businesses need end-to-end logistics—warehousing, customs brokerage, and multimodal transport—to stay agile during demand surges.
   
   
3. Prioritize Visibility & Communication: Peak season disruptions are inevitable, but real-time tracking and automated alerts help businesses stay agile. 

Clear, proactive communication—through dedicated account managers and regular updates—builds trust and manages customer expectations, ensuring a smoother shipping experience.

Outpace the Festive Frenzy with the Right Support

The festive season brings big opportunities—but only for those ready to tackle its challenges. In Southeast Asia’s complex logistics landscape, success requires more than strategy—it demands the right support.

Ninja Freight delivers the complete package: end-to-end solutions, regional expertise, and dedicated account managers who understand the unique demands of the peak season. With our support, you can streamline your operations, reduce costs, and keep your customers happy.

This festive season, don’t just keep up—stay ahead.