Air cargo volumes surprised on the upside again in August, rising by around 5% year on year, the second consecutive month of growth at this pace. Capacity also increased by 4%, though yields came under pressure as rates softened.

Despite the stronger demand, the outlook for Asia–Europe and Asia–US markets in particular remains uncertain, with policy changes and operational constraints threatening to erode recent gains.

Average spot rates from Southeast Asia to North America and Europe declined by around 20% compared with last year, reflecting easing capacity pressure, while North East Asia to North America fell by just 8%. Rates on North East Asia–Europe routes were broadly stable year on year, though down slightly month on month. Transatlantic markets saw rates edge up by 5% annually, but momentum slowed as the summer holiday period cut into demand.

These shifts underline the fragility of recovery. Purchasing Managers’ indices in key exporting economies fell again in August, and American consumer sentiment softened. Growth on Asia–Europe and Asia–US trades has been sustained largely by front-loading and tariff avoidance, rather than stronger consumption.

Regulatory pressures and cost dynamics

The removal of the de minimis exemption for low-value shipments entering the US at the end of August is reshaping flows. While originally targeted at Chinese eCommerce, the new rules apply across all origins. For European and Asian exporters, this adds new administrative steps and costs, particularly for SMEs. Observers expect lower eCommerce volumes into the US, with some share shifting back towards China due to lower production costs.

Average spot rates across global markets fell by about 3% year on year in August, with sharper declines once currency depreciation is factored in. Capacity expansion has kept pressure on yields, even as jet fuel costs dropped by 7% year on year, providing some relief to carriers. The balance between steady demand and competitive pricing remains delicate, with the sustainability of current growth dependent on careful capacity management.

Reliability challenges deepen

Operational reliability has become a significant concern. On-time performance among major carriers slipped from 81% in May to 80% in June, and down again to 77% in July. For context, anything below 90% is considered mediocre, and mid-70s is cause for concern. Among the 22 airlines surveyed, the gap was wide, with punctuality as low as 57%, to a high of 94%.

For shippers, this can translates into missed connections, additional storage costs, and strained deadlines. Contributing factors include congested airports, ground-handling labour shortages, outdated facilities, and limited data integration across the air cargo chain. Without structural improvements, reliability risks may become systemic, undermining the demand growth achieved in recent months.

Outlook

The near-term outlook for air freight is mixed, with improving but weak economic fundamentals and policy changes that add friction. Key routes from Asia to Europe and the US continue to anchor growth, yet they are the lanes under constant pressure from regulatory shifts and declining schedule reliability. Unless carriers can address operational shortcomings and adjust capacity effectively, current momentum may prove short-lived.

Demand is shifting and schedule reliability is a moving target, but Metro continues to secure space and certainty by actively managing capacity, optimising routings, and leveraging trusted carrier partnerships.

On our MVT platform, real-time flight telemetry provides:
– Live aircraft position and route mapping
– Accurate departure/arrival confirmations
– Time-stamped milestones updated in real time
Plan with confidence, optimise inventory, and protect deadlines, even as conditions change.

EMAIL Andrew Smith, Managing Director, to learn how our data-driven air freight keeps your supply chain moving.