Air Freight Market Update
May 2025
What’s shaping Air Freight in 2025? Explore how early 2025 dynamics are impacting global Air Cargo.
Global Air Cargo Update
Global Air Cargo Demand
- High demand driven by e-commerce and high-tech industries, coupled with challenges such as trade policy shifts and capacity constraints, with U.S. tariff news, led to increase in airfreight as companies sought to bypass impending tariffs
- Major volumes in YoY YTD April’25, contributed by Asia Pacific (China, Vietnam, Indonesia and Taiwan). Key trade routes with significant growth YoY YTD April’25, Intra-Asia-Pacific at 13%, Europe-North America at 8% and Asia Pacific-North America at 3%
Global Air Cargo Capacity
- YoY May’25, growth for Asia Pacific-Europe, Asia Pacific-Middle East and Africa and Europe-Asia Pacific, significant declines in Intra-Asia Pacific and North America-Asia Pacific capacity.
- Demand expected to grow by 4–6% in 2025, outpacing capacity growth, projected at 3–4%. Capacity expansion is constrained by factors such as production delays from aircraft manufacturers, limited availability of freighters, and retirement of older planes.
Regulation/News
- Lufthansa Cargo enhances temperature-controlled services, focusing on additional monitoring, protection and speed of transport for pharma products, supported by the CEIV-certified Pharma Hub Frankfurt.
- UNCTAD forecasts growing importance of critical minerals, particularly copper, in the green and digital economy. Global copper demand is expected to grow by over 40% by 2040, necessitating significant investments and coordinated trade strategies.
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Regional Air Freight News
Europe
- Despite soft export demand and cautious business confidence, the Purchasing Managers' Index approached stability, while selling price inflation accelerated.
- Freight rates eased from earlier peaks but held steady, reflecting a gradually normalizing air cargo market across Europe.
Asia
- This tariff rollback has triggered a rebound in the spot market, prompting carriers and logistics providers to reassess capacity strategies to better accommodate shifting demand patterns.
- While the immediate positive impact of tariff reductions is clear, the long-term outlook remains uncertain due to ongoing geopolitical tensions and potential policy shifts affecting global trade dynamics.
Middle East and Africa
- Security developments in Tripoli have caused several operational disruptions, while cargo capacity at Lagos airport remains limited due to high perishable fruit export demand from Ghana and Nigeria.
- Demand for Kenyan flowers is expected to decline with the start of the low season through August, coinciding with Eid Al Adha holidays beginning June 6, 2025, which may impact regional cargo flows.
Americas
- This suspension is expected to encourage companies, previously deterred by tariffs, to resume shipping and replenish supply chains.
- US and UK have established a framework for a new trade deal aimed at reducing tariffs and enhancing market access, particularly benefiting sectors like the UK auto industry.
Detailed Air Freight Market Update
Discover the latest trends, key market developments, and expert analyses that can impact your logistics strategy.
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