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Asia shippers report continued volatility and predict demand growth in H2

Shippers based in the Asia Pacific region are expecting cargo demand to grow this year, but also expect supply chain disruption to continue. A survey of 180 Asia Pacific shippers carried out by freight forwarder Dimerco showed that 71% are expecting air and ocean cargo demand to increase in the coming six months, fuelled by underlying trade growth but also defensive behaviours in response to geopolitical volatility. These defensive behaviours include rerouting, front-loading and modal shift. Asked why they expected demand to grow, 32.7% said geopolitical factors, 30.5% said demand growth, 20.4% said economic conditions, 12.2% said capacity changes and 4.1% said inventory adjustments. The survey also revealed that most shippers experience supply chain disruption on a regular basis, with 58.8% saying shipments are delayed on a monthly basis, 15.7% on a weekly basis and 15.7% saying one or two times a year. Geopolitical disruption, port congestion and customs or regulatory delays were given as the three main reasons for the disruption. "The effect is concentrated on major trade lanes. Asia-North America was the most frequently cited lane for both air and ocean users, selected by 57% of active air users and 61% of active ocean users. Asia-Europe ranked second," the survey found. Dimerco says companies using these corridors should watch policy changes, carrier allocation and gateway congestion through the second half of the year. The survey also looked at what the top operational challenges are for the airfreight market, with rate volatility, schedule reliability, geopolitical disruption, capacity constraints and customs clearance delays being the main concerns. Meanwhile, the survey also revealed that 42% of shippers surveyed had changed their primary logistics provider in the past 12 months. Among switchers, 70% cite pricing and 60% cite service reliability; 35% select both. Better regional coverage is a reason for 25%, followed by capacity availability and digital visibility. Other key findings include 92% of respondents saying freight rates increased over the past year, and 84% say they have changed shipment strategy frequently or occasionally because of disruption. "Delays are no longer occasional exceptions," Dimerco said, adding: "That changes the planning conversation. Rate negotiation matters, but the report suggests shippers also need route options, compliance readiness, allocation planning and clear decision thresholds before disruption hits." Dimerco recommended that shippers plan for higher demand without assuming smoother execution; treat disruption as a standing operating condition; build extra protection around ocean reliability; use air selectively as a pressure-release valve; compare modes on total economics and risk; and evaluate providers across price, execution and resilience.

Frontloading lifts 2025 air cargo demand for Asia Pacific airlines

Frontloading activities helped Asia Pacific airlines achieve a healthy year-on-year increase in air cargo demand last year, showed preliminary figures released by the Association of Asia Pacific Airlines (AAPA). Air cargo demand, measured in freight tonne kilometres (FTK), rose by 3.5%. This demand increase was "supported by front-loading activities ahead of tariff hikes, as airlines responded swiftly to evolving trade flows", stated the AAPA. Full-year global air cargo demand for 2025, measured in cargo tonne-kilometers (CTK), increased 3.4% compared to 2024, according to IATA. The AAPA said cargo revenue for Asia Pacific airlines increased by 1.4% year on year to $23.6bn, but weakness in freight rates resulted in a 2% fall in cargo yields to 32.1 US cents per FTK. Carriers operating in the passenger and cargo markets alike faced ongoing supply chain disruptions and inflationary pressures that contributed to higher expenditure on staff, leasing, maintenance and airport charges. By contrast, fuel expenditure declined, reflecting a fall in global jet fuel prices. Wong Hong, AAPA director general said, "Asia Pacific airlines entered 2025 from a position of strength, with robust passenger and cargo demand supporting another year of profitable growth. "While easing fuel prices provided some relief, persistent supply chain disruptions and inflationary pressures pushed non-fuel operating costs higher." Commenting on the current operating environment, Hong said airlines are contending with ongoing conflict in the Middle East, plus high operating costs, including volatile jet fuel prices "Consequently, fuel expenditure, the largest single operating cost item for airlines, is expected to rise this year," he added.

Air Cargo India flies first international export shipment out of Navi Mumbai

Air Cargo India said it has transported the first international export shipment from the new Navi Mumbai International Airport. The 1.79-tonne consignment, comprising crates of freshly harvested guavas and Drumstick Moringa - the pods of the tropical Moringa oleifera tree, was carried on an Air India Express passenger flight to Abu Dhabi on 15 July, the first day of international flights at Navi Mumbai. Air India Express is operating three times weekly on the route using a Boeing 737-8 aircraft that offers approximately 2.5 tonnes of belly-hold cargo capacity. The capacity on the route supports the movement of perishables and time-sensitive goods from western India to the UAE and the wider Gulf region, and Air India Cargo expects the service to carry around 25 tonnes of cargo each month. "Every new route presents an opportunity," said Ramesh Mamidala, head of cargo, Air India. "This first export shipment from Navi Mumbai connects growers, traders and businesses in western India directly with one of the region's most important international markets. "Fresh produce is highly time-sensitive, and reliable air connectivity plays a critical role in helping Indian exporters reach global consumers while preserving product quality." Air India Cargo said it has steadily strengthened its capabilities over the past several years to support the growing movement of perishables, pharmaceuticals and other temperature-sensitive commodities across its network. Its cargo operations are supported by specialised equipment, including cool dollies and thermal blankets, designed to minimise temperature fluctuations while shipments move between warehouse and aircraft. "Cargo is often the unseen enabler of trade," said Mamidala. "When we transport perishable products such as fruits, vegetables or temperature-sensitive pharmaceuticals, speed alone is not enough. "Maintaining the integrity of the shipment from origin to destination is equally important. Investments in cold-chain infrastructure and globally certified handling processes are helping us support exporters with the reliability they need." For growers and exporters across Maharashtra, reliable air cargo links can make the difference between accessing local markets and reaching international consumers willing to pay a premium for fresh produce, stressed Air Cargo India. "The Gulf has long been a strong market for Indian produce," Mamidala said. "By making additional capacity available from Navi Mumbai, we are creating faster and more efficient pathways for exporters while strengthening India's agricultural export ecosystem. Every shipment represents the efforts of farmers, traders, freight forwarders and logistics partners, and our role is to connect them to opportunities beyond India's borders." Developed by Adani Airport Holdings and CIDCO, Navi Mumbai International Airport officially commenced domestic commercial operations on 25 December. Earlier this week, Cathay Cargo revealed that it would shift its freighter operations to Navi Mumbai International Airport from Mumbai's Chhatrapati Shivaji Maharaj International Airport as upgrade work is being carried out there and freighter operations are suspended.