Air cargo volumes from Asia are on the rise, driven by strong demand and shifting trade patterns. However, as the market continues to grow, securing space on major trade routes is becoming increasingly difficult due to ongoing capacity constraints.
SHIFT IN AIR CARGO CONTRACTS
Over the past year, capacity issues have made an impact on air cargo contracts. In November, load factors hit 63%, the highest level in two years. This has caused a shift toward longer-term agreements. Contracts lasting 12-months now cover 50% of the market, up from 37% earlier this year, while shorter-term deals have become less common.
GROWTH IN ASIAN
Shipments out of Asia, particularly consumer electronics, have seen a significant increase. This uptick, which started in December, is expected to continue through January 2025 as businesses prepare for the Lunar New Year. Some airlines have already reported a 15% increase in cargo volumes for November compared to last year, underscoring the strong demand for time-sensitive shipments despite tight space.
TARIFFS EXPECTED TO BOOST DEMAND IN 2025
Looking ahead to 2025, potential tariffs on Chinese imports could drive even more demand for air cargo. Many shippers are speeding up shipments to avoid tariff hikes, putting even more pressure on capacity.
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