Air Cargo Faces Looming Slowdown
Air cargo demand is set to decline in 2025, following a stellar run in 2024 marked by double-digit growth fueled by ocean freight disruptions and e-commerce surges. Analysts, including logistics giant DSV, project flat volume growth as markets adapt to ocean freight stability and U.S. regulations curtail duty-free e-commerce imports from China. This coincides with production challenges for freighter aircraft, geopolitical uncertainties, and capacity reductions on major trade lanes like China-Europe due to Russia-related airspace restrictions.
The industry also faces pressures from rising operational costs, sluggish growth in China’s economy, and shifting fulfillment models, such as Chinese sellers moving inventory via ocean freight to U.S. warehouses. Despite these headwinds, opportunities persist in emerging markets and potential shifts to air cargo from a looming U.S. dockworker strike. TLC is leveraging its adaptive air freight solutions to keep clients ahead of these shifts. Contact us today to optimize your air cargo operations for 2025.
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