by supplychainreport
As global trade dynamics continue to evolve, the air cargo industry is responding with agility by leaning into short-term contracts and spot market strategies. This shift is helping shippers and freight forwarders stay competitive and resilient despite rising tariffs and policy shifts.
A recent Xeneta report reveals that 79 percent of shipper contracts in the first quarter of 2025 were short-term agreements of three months or less. Forwarders are also keeping 45 percent of volumes in the spot market, offering flexibility as market conditions fluctuate.
Rather than seeing tariffs as setbacks, industry professionals are using them as a push to modernize operations. The recent increase in U.S. tariffs on Chinese imports to 125 percent and the corresponding response from China are prompting a reassessment of long-term commitments in favor of more adaptable logistics strategies.
“This level of responsiveness is what defines successful supply chains today,” said Niall van de Wouw, chief airfreight officer at Xeneta. “Short-term deals help businesses manage costs and avoid long-term exposure to uncertainty.”
Despite the challenges, the market remains active. The average air cargo spot rate from Northeast Asia to North America rose to $4.17 per kilogram in March, up 9 percent year over year. Global cargo volumes also increased by 5 percent, signaling continued trade movement.
The expected return of the de minimis exemption ban for low-value shipments from China and Hong Kong in May is another factor influencing strategy. Many e-commerce shipments rely on this exemption, and companies are now preparing for changes to maintain stability in their supply chains.
These developments show how the air cargo sector is turning complexity into opportunity. By staying flexible, investing in diversified logistics plans, and adjusting to trade policy changes, the industry is maintaining momentum and building a more resilient global supply chain.
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