Air cargo demand from Asia to North America dropped 10.7% due to U.S. trade policies

From Yahoo Finance: 2025-06-30 13:34:00

Air cargo demand from Asia to North America dropped 10.7% in May after the U.S. ended the de minimis trade exemption with China. Overall, global air cargo demand rose 2.2%. IATA director called the growth “encouraging” despite challenges from U.S. trade policies. Capacity increased by 2% globally, with Asia-Pacific seeing a 5.7% increase.

IATA lowered its 2025 air cargo demand forecast due to the de minimis suspension and U.S. tariffs. China-U.S. cargo volumes have declined by 60%, impacting e-commerce bookings. FedEx reported a sharp decline in China-to-U.S. volumes. Rates out of China are falling, with China-to-North America prices dropping 2%.

Front-loading cargo to the U.S. by air has slowed ahead of tariff deadlines, but demand from Southeast Asia is rising. India’s air freight rates may increase due to global shipping disruptions. Air freight backlogs are expected in Singapore, while cargo rates across all trade lanes saw a decline in May.

Despite challenges, air cargo industry shows resilience. Rates may rise in Southeast Asia due to upcoming deadlines. China-U.S. cargo volumes continue to decline. India faces challenges with Middle East tensions affecting capacity. Global air freight rates saw a decline in May.

Read more: Asia-to-North America Air Cargo Demand Plunges 10.7% After De Minimis Suspension