The air cargo market is experiencing significant shifts as 2024 transitions into 2025. Prolonged peak seasons, evolving trade patterns, and geopolitical factors reshape global freight dynamics. Here’s a breakdown of the latest trends impacting air freight, focusing on Asia-Europe and Asia-Americas routes.
Rising Air Cargo Rates in 2025
Airlines have capitalized on the extended December peak to increase contract rates for 2025. Reports indicate a 10% rate hike for long-haul and intra-Asian routes. For instance, the blocked space agreements on Asia-to-Europe routes saw record prices at $1.4/kg. However, some experts argue rates remain lower than in 2023, suggesting a gradual market recovery.
Extended Peak Season Challenges
Unlike previous years, the December peak season has stretched into January, fueled by increased consumer electronics and non-eCommerce goods. Better planning by shippers has smoothed out logistics while optimizing costs, a trend expected to continue in 2025.
Key Insights:
- General cargo has bypassed the typical October-November eCommerce rush, enabling better capacity utilization.
- Trade between Asia and Taiwan has surged, driven by semiconductor and AI chip exports.
Capacity Constraints on Major Routes
Certain trade lanes face severe capacity shortages:
- China-Taiwan-US Routes: Demand for semiconductor and AI components has tightened space, with limited availability until late December.
- Korean Air: Fully booked from Tianjin to Chicago through December.
- Japan Airlines: Flight cancellations from Tianjin have contributed to heightened space demand.
Impact of Geopolitics and Industry Trends
Geopolitical factors, such as potential US port strikes and Red Sea shipping disruptions, will likely influence air cargo significantly at the beginning of 2025. For instance:
- Strikes on US East Coast ports may cause ocean-to-air cargo mode shifts.
- The introduction of the Gemini network and evolving trade tariffs will further impact demand and capacity management.
AI Chips and Electronics Drive Growth
High-tech sectors, particularly AI and consumer electronics, are key growth drivers in 2025. Taiwan’s semiconductor industry continues to play a critical role, with more components shipped for assembly before export to the US, sidestepping potential tariffs.
How ASLG Can Help You Navigate 2025 Trends
Adapting to 2025’s air freight complexities requires a reliable logistics partner. ASLG specializes in tailored air freight solutions, ensuring efficient and secure delivery even during peak seasons. From managing rates to navigating geopolitical challenges, ASLG is your trusted partner for global logistics success.
