Surge in Trans-Atlantic Air Cargo Demand as European Exporters Rush Ahead of Tariff
A significant surge in trans-Atlantic air cargo demand is occurring as European exporters expedite shipments to the U.S. ahead of new tariffs set to take effect in April. The automotive industry is leading this charge, with manufacturers prioritizing fast-tracked deliveries to avoid the impending duties. In response to the current uncertainty, freight forwarders are choosing short-term agreements over long-term commitments.
Carriers are also reassessing their freighter capacity strategies, contemplating a pivot from China to Southeast Asia or the trans-Atlantic market. This shift comes amid ongoing supply chain volatility that continues to influence global air cargo trends. With annual contract negotiations for 2025 being postponed, industry players are exercising caution and awaiting clearer guidance before making binding commitments.
Compounding these challenges is the suspension of the ‘de minimis’ exemption, which previously allowed duty-free imports for low-value shipments under $800. This regulatory change is anticipated to significantly impact e-commerce shipments, particularly those moving from China to the U.S., potentially dampening air cargo demand in that corridor.
While trans-Atlantic routes are currently enjoying a temporary increase in activity, industry experts warn that overall market conditions remain precarious. Freight operators must strike a balance between the need for flexibility and long-term strategy as trade policies evolve. The upcoming months will serve as a critical test for air cargo stakeholders, with ongoing geopolitical changes playing a pivotal role in shaping capacity and pricing dynamics.
