Air Freight Market Update
December 2024
Global air cargo demand stays robust, fueled by e-commerce growth in China and the Red Sea conflict, causing capacity challenges and higher rates on transatlantic and transpacific routes.
Global Air Cargo Update
Global Air Cargo Demand
- Global air cargo demand remained robust in late 2024, driven by AP and AMNO carriers, with e-commerce fueling growth.
- Air cargo demand from AP softened in early January but is gradually rebounding as shippers rush deliveries ahead of the Lunar New Year.
Global Air Cargo Capacity
- Global air cargo capacity rises 6% YoY in January 2025, with the AP-AMLA route leading the growth.
- E-commerce remains a key driver of air cargo capacity utilization, with high load factors projected for 2025.
Regulation/News
- All major carriers have resumed flights to and from Lebanon, except for AF and EK, which are expected to restart operations in February.
- Jet fuel shortage at South Africa's Natref refinery may disrupt air cargo operations at JNB airport.
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Regional Air Freight News
Europe
- European air freight volumes continue to show an upward trend, despite geopolitical and economic challenges.
- Air cargo carriers introduce mandatory surcharges to offset costs of EU's 2025 SAF blending quota
Asia
- Strong market demand persists, with carriers allocating more capacity to Asia to mitigate supply chain disruptions.
- Long-term trend of relocating manufacturing to SE Asia will further influence carrier capacity allocations and flight routing in 2025.
Middle East and Africa
- Middle East exports to Europe remain strong, driven by sea-air volumes and Red Sea disruptions, pushing airfreight rates higher.
- Flight schedules ex-MEA are gradually returning to normal, with 32 additional flights added to boost capacity.
Americas
- Transatlantic air cargo rates have risen as airlines shift capacity from Europe to Asia.
- US plans to impose new tariffs on imports, potentially hindering e-commerce air cargo growth from AP markets.
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