The Asia Pacific region remains a dynamic force in the worldwide economy. While traditional manufacturing hubs in Northeast Asia face headwinds, Southeast Asia countries are emerging as critical growth drivers, particularly within the air freight market. The traditional peak season, historically centered on China, is now driven by robust export flows from Southeast Asia. Vietnam, Thailand, and Malaysia are seeing a surge in shipments, with their volumes to the United States beginning to surpass those from China. This growth is fueled by high-value, high-tech products, including AI servers, consumer electronics, and other advanced components on Transpacific Eastbound (TPEB) routes. In response to this rising demand, airlines are already increasing capacity to accommodate the accelerated growth.
This trend is not isolated to air freight; it also applies to sea logistics. The Philippines, for example, is experiencing rising ocean freight rates driven by early preparations for the Christmas season, a typical trend for September each year. The country's Manufacturing Purchasing Managers Index (PMI), a key economic indicator, remained consistently above 50 in 2025, indicating an expanding manufacturing sector. Similarly, Thailand and Vietnam have also seen their manufacturing sectors expand.
This growth, however, is not without its challenges. The rising demand leads to capacity constraints and rate increases in key trade lanes. For example, air freight space from Hong Kong to destinations like Singapore and Vietnam is under pressure. Similarly, flights from Vietnam to the US West Coast are experiencing higher demand and rising rates, particularly for electronics shipments. In Thailand, capacity is tightening on long-haul routes to the US and Europe, with rates trending upward.
Regional logistical hubs are playing a crucial role in managing these shifts. Singapore, a central transshipment hub, is poised to see higher volumes due to extended tariff negotiations between China and the US. The Shanghai Pudong (PVG) airport has also implemented a new direct transfer service to ease pressure at origins such as Hanoi, Ho Chi Minh City, Bangkok, and Penang for US and European lanes, providing much-needed capacity during the peak season.
On the ocean freight side, while global container rates have faced downward pressure, intra-Asia rates also dropped in the first half of 2025. Despite this, specific markets like the Philippines are seeing rising ocean rates, driven by seasonal demand. The overall market is adapting to geopolitical tensions, with smaller regional lines expanding their presence as larger liners reroute around conflict zones.
In conclusion, the Southeast Asia region is constantly influencing the world. The region's vibrant manufacturing base and strong export flows, particularly in high-tech sectors, drive its own economic expansion and fundamentally alter global trade patterns. As businesses continue to navigate a complex geopolitical and economic landscape, Southeast Asia's role as a primary engine of growth in the Asia Pacific region is expected to solidify further. Its ability to adapt to shifting demands and its increasing importance in global supply chains make it a key market to watch in the coming years.
Air cargo exports from India to the USA have plummeted since new tariffs of 50% came into force on 27 August, while volumes from India to Europe have steadily risen, according...
Air cargo demand shows mixed trends in 2025, with strong growth across Europe and intra-Asia routes, while labour disputes, weather events, and aircraft shortages create disruption...
The global air cargo industry is proving once again that it thrives in adversity. In one of the opening fireside chats at this year’s ACE Air Cargo Event, a panel of industry...
Delivery of Air Côte d’Ivoire’s first Airbus A330-900neo, marking its entry into the widebody market and signalling West Africa’s growing ambitions in international aviation...
The Chinese airfreight market is shifting away from the US in favour of Europe as a result of Washington’s imposition of new trade and tariff policies, according to WorldACD.
ACI Europe data reveals mixed performance across major cargo hubs with Frankfurt, Heathrow and Liege showing growth while Istanbul and Amsterdam Schiphol report volume decreases
The full-month figures for August highlight what appears to be a structural change of outbound air cargo trade flows from China and Hong Kong (China/HK). There is a clear...
Global logistics operations have faced unprecedented challenges in recent years, driving rapid innovation to meet shifting market demands. Nowhere is this transformation more...
The global landscape of aviation and logistics is undergoing a profound shift eastwards. This transformation is being accelerated by continued production growth across Asia...
ALS