CH Robinson reports widespread air cargo capacity rationalisation following July's inventory front-loading ahead of US tariff deadlines, according to London's Air Cargo News.
Airlines added flights to the US in July to accommodate demand before tariff hikes scheduled for August. With most importers having completed inventory buildup, carriers are now downsizing capacity to match reduced demand.
'Carriers are implementing flight cancellations and route diversions to fill remaining services and maintain profitability,' ch Robinson said. The correction is most evident on Asia-US routes, where front-loading disrupted the traditional peak season for electronics and consumer goods.
The end of the US de minimis exemption for low-value shipments from China and Hong Kong has further weakened e-commerce demand. Additional restrictions on other countries are expected to take effect on August 29.
Despite the downturn, premium shipments such as AI servers and cryptocurrency mining equipment remain strong, though they represent a small portion of total volume.
The US-China tariff truce, originally set to expire on August 12, was extended by 90 days. The extension reduced the anticipated tariff from 145 per cent to 30 per cent, easing pressure on trade flows.
Brazil was hit with a 50 per cent tariff on August 7, causing immediate disruption across agri-food, steel, coffee, citrus, and aerospace sectors. CH Robinson said US importers are cancelling or postponing shipments, creating a sudden surplus in air cargo capacity on Brazil-US lanes.
SeaNews Turkey
Airlines added flights to the US in July to accommodate demand before tariff hikes scheduled for August. With most importers having completed inventory buildup, carriers are now downsizing capacity to match reduced demand.
'Carriers are implementing flight cancellations and route diversions to fill remaining services and maintain profitability,' ch Robinson said. The correction is most evident on Asia-US routes, where front-loading disrupted the traditional peak season for electronics and consumer goods.
The end of the US de minimis exemption for low-value shipments from China and Hong Kong has further weakened e-commerce demand. Additional restrictions on other countries are expected to take effect on August 29.
Despite the downturn, premium shipments such as AI servers and cryptocurrency mining equipment remain strong, though they represent a small portion of total volume.
The US-China tariff truce, originally set to expire on August 12, was extended by 90 days. The extension reduced the anticipated tariff from 145 per cent to 30 per cent, easing pressure on trade flows.
Brazil was hit with a 50 per cent tariff on August 7, causing immediate disruption across agri-food, steel, coffee, citrus, and aerospace sectors. CH Robinson said US importers are cancelling or postponing shipments, creating a sudden surplus in air cargo capacity on Brazil-US lanes.
SeaNews Turkey
