Tariffs Contributed to 'Sudden' 5% Increase in Global Air Cargo Volumes in July, Market Firm Says
Global air cargo volumes grew 5% year-over-year in July as shippers may have sought to front load goods ahead of U.S. tariff deadlines or expedite shipping amid market uncertainties, said Xeneta, a Norway-based freight rate market analytics firm. The company thinks this means "more shippers opted for the speed of airfreight to help circumvent U.S. tariffs."
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The 5% increase is significant because July is typically when the market experiences a seasonal lull, the firm said. June air cargo volumes were up by only 1% year-over-year.
However, despite the monthly volume increase in July, market uncertainties are still casting a shadow over global trade flows, Xeneta said in an Aug. 6 release. The end of de minimis at the end of August and its impact on the remaining small parcel air trade between the U.S. and Canada, the U.K. and Mexico could add further complexity, particularly if foreign postal authorities take up reciprocal measures, Xeneta said.
“Circumventing is about responding quicker, anticipating something else, and being prepared to pay a little bit more for airfreight transportation because it is still better than paying a much higher tariff on goods,” Xeneta Chief Airfreight Officer Niall van de Wouw said in the release.