Recent data from WorldACD highlights a slight decline in airfreight demand from China and Hong Kong to the U.S., coupled with rising rates as trade tensions escalate.
Key Insights from Week 14 (Ending April 6, 2025)
Demand Trends:
Airfreight demand from China and Hong Kong to the U.S. decreased by 1% week-over-week, marking the first decline since the start of the year. However, volumes remained 3% higher compared to the same period in 2024.
Asia-Pacific Region: Demand dropped 7% week-over-week, reflecting a broader regional downturn.
Pricing Trends:
Rates from Asia-Pacific increased by 4% week-over-week, with the average spot rate rising 5% to $3.94 per kilogram.
Global air cargo demand weakened overall, showing a 7% week-over-week decline.
Factors Driving Declines
WorldACD attributes this decline in global air cargo demand to two primary factors:
Eid Holidays: The end of Ramadan contributed to approximately half of the demand reduction.
Trade War Uncertainty: Heightened tensions following the U.S.’s new tariff policies and the removal of de minimis exemptions for shipments from China and Hong Kong accounted for the remaining decline.
Despite the week-over-week contraction, year-over-year global air cargo demand showed a 6% increase, indicating a relatively robust market compared to 2024.
Global Pricing Developments
On a global scale, average air cargo rates rose by 2% week-over-week to $2.52 per kilogram, driven by increasing costs across most regions except Central and South America.
Compared to 2024, rates have risen by 2.9%, reflecting sustained pricing pressure.
Outlook: Tariffs and Trade Flow Impact
The trade war between the U.S. and China is expected to bring further market disruptions:
The U.S. imposed a 145% tariff on imports from China, while China retaliated with a 125% tariff on U.S. goods.
Tariffs on other trade partners have been delayed by 90 days, adding another layer of complexity.
WorldACD predicts that the impact of these measures will become clearer in subsequent reports, particularly as the U.S. tariffs implemented on April 9 take full effect.
“As the new U.S. tariffs that were not subject to the 90-day hold came into force, we anticipate a more pronounced effect on specific trade flows in the coming weeks,” the report concluded.
𝐀𝐋𝐒 – 𝐓𝐡𝐞 𝐋𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐟 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬
E-commerce continues to be a key growth driver for air cargo, fueled by rising consumer demand and the rapid expansion of emerging markets, even as regulatory barriers increase.
The International Air Transport Association (IATA) has maintained a positive outlook for air cargo, emphasizing that the majority of global trade remains unaffected by the...
Dubai – The International Air Transport Association (IATA) has reiterated the critical role of air cargo in maintaining global supply chain resilience, urging governments...
Trade uncertainties stemming from tariff-related tensions have caused a decline in ocean cargo bookings originating from China, Freightos reported.
Effective immediately (April 16), Hongkong Post has announced the suspension of surface postal items containing goods destined for the United States.
After a promising start to 2025 that extended the recovery trends of 2023, booking volumes for U.S. containerized imports have dropped sharply—declining 20% from their January...
The slowdown in global tonnage that began in the latter half of March accelerated in week 14 (March 31 – April 6), according to the latest weekly figures from WorldACD Market...
At the core of this vision lies the Menzies Aviation Cargo Handling (MACH) system, a cloud-based, standardized cargo management platform being deployed across 54 locations...
These pivotal issues will take center stage at the IATA World Cargo Symposium (WCS) 2025, to be held in Dubai from April 15–17. Industry leaders will convene to explore strategies...
ALS