Asia's recovery, Europe's shifts, and U.S. export air freight trends
Asia
Demand for crypto mining machines and AI-related cargo remains strong and may even require charters. Consequently, demand is projected to moderately increase in March compared to February.
Capacity is expected to remain stable to moderately increase, aligning with demand, and rates should follow suit. The market is watching the U.S. administration's recent actions on import tariffs and the de minimis rule, as it has injected uncertainties in the U.S. supply chain.
Europe
The ongoing war in Ukraine has reconfigured trade routes, particularly affecting air cargo volumes at key European hubs like Frankfurt and Amsterdam. However, this has also opened opportunities for alternative routes and partnerships. Labor strikes at major ports such as Rotterdam and Antwerp are causing occasional disruptions, but proactive planning and flexible logistics solutions can mitigate these impacts.
Additionally, the surge in demand for critical minerals for green energy projects is driving new trade dynamics. Despite these challenges, the industry is adapting with innovative strategies to ensure smooth operations and capitalize on emerging opportunities.
LATAM
Freight from the U.S. inbound has capacity available in to core locations. While e-commerce volume remains steady, it is short of last quarter’s numbers. Outbound air export opportunities are strong, with competitive pricing and positive momentum.
Asia Pacific demand is consistent with aggressive spot ratesavailable, but rates are expected to rise in March. We also continue to offer very competitive solutions available from our European gateways.
North America
The U.S. export market to South America continues to show improvement in the wake of extreme capacity challenges seen late in 2024. The first quarter is traditionally a low season for air exports and e-commerce demand moving from China via Miami . If e-commerce demand re-surges we can expect the market to tighten again, but in the short term the relief is welcome.
Starting in mid-March we will see capacity on the transatlantic trade increase. Increased passenger travel demand will slowly bring more flights into the market over the second half of March and into April.
South Asia, Middle East, Africa (SAMA)
The ongoing geopolitical tensions and trade disruptions in the Middle East, particularly around the Strait of Hormuz, are impacting shipping routes and air cargo volumes. In South Asia, ports like Mumbai and Colombo are experiencing congestion due to increased demand and infrastructure challenges. Africa's emerging ports, such as Durban and Lagos, are gaining momentum but still face operational inefficiencies. Despite these challenges, there are opportunities for alternative routes and partnerships to ensure smooth operations and capitalize on emerging markets.
Oceania
Ongoing geopolitical tensions and trade disruptions are impacting shipping routes, particularly affecting air cargo volumes at major hubs like Sydney and Auckland. Additionally, labor strikes at key ports such as Melbourne and Brisbane have yielded occasional disruptions. The recent surge in demand for critical minerals for green energy projects is driving new trade dynamics. Despite challenges, there remain plenty of opportunities for alternative routes and partnerships to ensure smooth operations and capitalize on emerging markets.