Airlines are scaling back air freight capacity following the expiry of key US tariff deadlines, with logistics firm CH Robinson reporting a market correction driven by reduced demand, reports New York's Sourcing Journal.
In July, carriers added flights to accommodate front-loading ahead of the 1 August tariff deadline. However, with the China-specific deadline extended by 90 days, shippers are no longer rushing goods into the US, prompting airlines to cancel flights and divert routes.
'Most importers completed inventory buildup in July,' said CH Robinson. 'Carriers now face the challenge of right-sizing capacity.' The correction is most visible in markets previously strained by tariff-related surges.
Worland data shows air cargo capacity remained flat between July 21 and August 3, compared to the prior fortnight. Year on year, capacity is up five per cent, though chargeable weight fell two per cent.
Asian carriers are particularly affected, as the traditional peak season for electronics and consumer goods has been disrupted. The Asia-to-North America trade lane continues to struggle, impacted by tariffs and the closure of the de Minimis exemption for Chinese goods on May 2.
Cargo tonne-kilometres dropped 10.7 per cent in May and 4.7 per cent in June. With the de minimis ban expanding to all countries from 29 August, further impact is expected to be limited, as most affected freight originated from China.
Portless chief executive Izzy Rosenzweig said Vietnam and India are still developing direct US supply chains, with much of their freight routed through Canada and Mexico.
CH Robinson noted peak season surcharges are now in effect on Asian lanes for high-tech and time-sensitive cargo, with spot space requiring over one week's lead time.
Freightos research chief Judah Levine said the US-China tariff extension could trigger renewed front-loading in late October if no deal is reached before the November 10 expiration. Upcoming US tariff decisions on semiconductors and pharmaceuticals may also affect air cargo volumes.
SeaNews Turkey
In July, carriers added flights to accommodate front-loading ahead of the 1 August tariff deadline. However, with the China-specific deadline extended by 90 days, shippers are no longer rushing goods into the US, prompting airlines to cancel flights and divert routes.
'Most importers completed inventory buildup in July,' said CH Robinson. 'Carriers now face the challenge of right-sizing capacity.' The correction is most visible in markets previously strained by tariff-related surges.
Worland data shows air cargo capacity remained flat between July 21 and August 3, compared to the prior fortnight. Year on year, capacity is up five per cent, though chargeable weight fell two per cent.
Asian carriers are particularly affected, as the traditional peak season for electronics and consumer goods has been disrupted. The Asia-to-North America trade lane continues to struggle, impacted by tariffs and the closure of the de Minimis exemption for Chinese goods on May 2.
Cargo tonne-kilometres dropped 10.7 per cent in May and 4.7 per cent in June. With the de minimis ban expanding to all countries from 29 August, further impact is expected to be limited, as most affected freight originated from China.
Portless chief executive Izzy Rosenzweig said Vietnam and India are still developing direct US supply chains, with much of their freight routed through Canada and Mexico.
CH Robinson noted peak season surcharges are now in effect on Asian lanes for high-tech and time-sensitive cargo, with spot space requiring over one week's lead time.
Freightos research chief Judah Levine said the US-China tariff extension could trigger renewed front-loading in late October if no deal is reached before the November 10 expiration. Upcoming US tariff decisions on semiconductors and pharmaceuticals may also affect air cargo volumes.
SeaNews Turkey
