Air Cargo

The long-term effects of US tariffs and the removal of the de minimis exemption has disrupted established air cargo flows and is clouding the industry outlook for the year.

From his hometown hub of Memphis, Fred Smith built FedEx from a $4 million inheritance to an $88 billion behemoth.

The loss of An-124 heavy-lift air capacity will force a modal shift to ocean or a reduction in cargo sizes to fit into smaller craft, experts say.

But a rise in demand for general cargo will not be enough to offset the sharp decline in e-commerce shipments that followed the US clampdown in May on low-value imports from China.

The acquisition of Cole Group brings Mullen trade consulting and additional non-asset logistics leverage in the US and Canada.

The US Court of International Trade on Wednesday stated that President Donald Trump’s tariffs exceed his authority.

Demand for goods traditionally shipped by air has been weakened by global economic issues, high inflation in destination markets and geopolitical issues that have impacted trade flows.

The Luxembourg-based carrier is the latest airline to sign a supply agreement for sustainable aviation fuel, but it comes as the industry makes slow progress toward decarbonization.

The trans-Pacific air cargo sector is trying to assess the demand implications of the preliminary trade deal between Washington and Beijing, which included a reduction in the tariff on parcels from China.

The forwarder offered an unsettled outlook for the trans-Pacific in 2025 as shippers navigate the Trump administration’s 145% tariffs on goods made in China.

Interest in FTZs, where shippers can store goods while deferring the payment of duties, has increased dramatically since President Donald Trump implemented tariffs in April.

It is the second acquisition this week by a CMA CGM subsidiary following CEVA Logistics’ takeover of Turkish forwarder Borusan Tedarik, with both deals aimed at extending the carrier’s end-to-end supply chain control.

Chartered flights from China to the US have been canceled and air freight traffic has declined as Washington prepares to scrap the duty-free exemption for low-value goods shipped from China and Hong Kong.

If regulatory approval is achieved, the deal will nearly double the size of CMA CGM subsidiary CEVA Logistics’ footprint in a rapidly expanding region.

The closure of freighter slots at the airport beginning in August is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding.

US tariffs on China and the 90-day pause on tariffs imposed by Washington on a host of other countries made it difficult to assess how the market would develop this year, according to the forwarder’s CEO.

HHG imports rose almost 20% in 2024, fueled in part by home remodeling, but US tariffs on China and Vietnam could reverse that gain.

US electronics imports are riding a wave of cyclical replacement, but tariffs could bring on an ebb tide.

Qatar, IAG and MASkargo plan to get their trilateral partnership off the ground as soon as regulatory approval is secured.

Disruption caused by trade wars will reach deep into global supply chains, depressing an already uncertain outlook for the US freight economy.

With the integration now set to begin, DSV has announced a round of executive appointments with candidates promoted from within both DSV and DB Schenker.

An initial flurry of activity will be followed by a drop in demand after e-commerce from China and Hong Kong no longer enjoys duty-free treatment, the head of the air cargo group tells the Journal of Commerce.

But any shipper celebrations over potentially lower rates in a cooling market will be tempered by concerns about border congestion as US customs will now be tasked with processing millions of de minimis imports every day.

Price and volume increases are being seen across trans-Pacific and trans-Atlantic trade lanes, but there is little clarity on whether underlying demand is enough to prop up spot rates once the tariffs have been implemented.

Air cargo operators out of Europe’s busiest airport will face at least a week of turmoil as airlines, forwarders and terminals start clearing the rapidly building backlog of freight when flight operations restart at midnight Friday.

The automotive sector is driving the unseasonably strong volumes as manufacturers expedite shipments from Europe to the US to avoid new duties coming in April.

The ability to shift capacity to alternative growth markets combined with a diversified cargo mix will insulate the airline from US moves to target e-commerce imports from China, according to its chairman.

While strong e-commerce demand last year filled all available air freight capacity out of China and kept the industry in peak season mode, recent US moves to clamp down on low-value Chinese imports have rattled the market.

Contract logistics was the star performer in the company’s portfolio in 2024, with gross profit rising 4% to $4 billion.

The sector is off to a strong start to the year, but tariff-driven trade tensions and other concerns could have a negative impact on the global air freight market, according to industry groups.

While the US-based carrier experienced a strong 2024, growth this year is under threat due to tariffs and the unknowns involving when Red Sea transits will resume.

The forwarder reported solid results to close 2024 as unknowns linked to US longshore labor, tariff policy and changes to de minimis rules fueled trans-Pacific freight demand.

The first in a series of “development flights” loaded with packages from Hong Kong landed at the Scottish west coast airport this week with a view to launching scheduled weekly services in March.

The European Commission wants member states to exert greater control over low-value imports, while its consumer watchdog has launched an investigation into e-commerce giant Shein.

The former Wisconsin congressman and Fox Business host was confirmed by a 77-22 vote on Tuesday.

Average rates hit a 2024 high in early December but have declined steadily since, with not even an early Lunar New Year able to prevent the slide.

Airbus’ sudden shutdown of its heavy-lift subsidiary is pushing aviation experts to investigate alternative options to ensure lifts for outsized and project cargo loads are maintained.

The Doha-based carrier will expand the digital connectivity of its containers to improve real-time visibility across the global cargo and passenger network.

The US is seeking to amend rules regarding so-called de minimis shipments, which have skyrocketed since the pandemic.

Capacity will continue to be the greatest challenge facing cargo owners moving goods from Asia by air this year.