Trade Tensions, Tariffs Fuel Air Cargo Uncertainty as Shippers Seek Alternatives
Rising tariffs and geopolitical trade tensions are disrupting air cargo markets, prompting carriers, forwarders, and shippers to reassess strategies amid lingering uncertainty, according to data from Xeneta. With new U.S. tariffs on Chinese imports and delayed contract negotiations, industry players face mounting pressure to adapt—potentially rerouting e-commerce volumes and reallocating capacity across Southeast Asia and the Transatlantic.
Air Capacity Under Pressure
Xeneta reports that airfreight rates remain volatile as demand fluctuates and shippers hesitate to commit to long-term contracts. Some airlines are adjusting networks to account for shifting trade flows, while forwarders brace for cascading effects from ocean freight disruptions. The air cargo sector, already strained by pandemic-era imbalances, now contends with fresh headwinds from trade policy shifts.
Shippers Explore Alternatives
With air cargo dynamics growing increasingly unpredictable, businesses are turning to over-the-road (OTR) solutions to mitigate risk. “Tariffs unsettle air cargo, creating uncertainty and greater demand for non-air options,” said one industry analyst. “E-commerce shifts out of China could accelerate capacity realignments, but flexibility will be key for supply chain resilience.”
PRIMO, emphasizing human-first support, is among the providers offering agile OTR solutions to offset air freight disruptions. Their services aim to provide stability as shippers navigate volatile trade conditions and seek reliable alternatives.
Long-Term Implications
While peak season demand may temporarily buoy air cargo, experts warn that tariffs and geopolitical friction could prolong market instability. Stakeholders are urged to diversify transport modes, lock in contingency capacity, and monitor trade policy developments closely.
Read the original report on Supply Chain Dive here.