Air cargo capacity overtook demand for the first time in 19 months

With our strong presence in the expedited international airfreight business, the U-Freight Group notes a report by Xeneta that states global air cargo spot rates fell for the second straight month in June, dropping four percent year over year as available capacity outpaced demand for the first time in more than a year and a half.

The decline has fuelled concerns over a weakening market outlook for the second half of 2025 amid growing uncertainty around international trade.

Xeneta said that global air cargo volumes were flat in June, up just one percent year-on-year, while available capacity edged up two percent year-on-year.

When Xeneta reported April’s market data, it asked ‘how bad will it be?’ over the rest of 2025. That’s certainly top of mind now for airlines and forwarders, but also for shippers and consumers.

Despite this turbulence, air cargo demand for the first half of 2025 still grew by 3% compared to the same period of 2024.

But it looks like a less rosy outlook for the remainder of the year given the effects of looming tariffs and curbs on US de minimis exemptions for cross-border e-commerce goods.

To read a good article on Xeneta’s comments visit the following website: https://asiacargonews.com/en/news/detail?id=11045

For more information about the U-Freight Group’s global air freight forwarding and logistics services, or our e-commerce logistics operations, please visit the relevant pages of this website or contact your local office, details of which can be seen here: https://ufreight.com/locations