Global Air Freight Faces Challenges Opportunities in 2025

Global Air Freight Faces Challenges Opportunities in 2025

In June 2025, the global air freight market experienced a growth of 0.8%, with international cargo demand rising by 1.6%, particularly notable in the Asia-Pacific region. Available cargo space expanded by 1.7% year-on-year, although the cargo load factor declined. Jet fuel prices decreased by 12% compared to the previous year, while freight rates saw limited increases. Overall, the market continues to face both challenges and opportunities.

Air Cargo Faces Capacity and Cost Challenges by 2025

Air Cargo Faces Capacity and Cost Challenges by 2025

In 2025, the international air freight market reveals a structural divergence in capacity, with a stark contrast between surplus bellyhold capacity on passenger planes and a shortage of dedicated freighters. Regional freight rates are highly volatile, with prices soaring from Southeast Asia to Europe while decreasing on the trans-Pacific routes. Companies need to leverage data analytics to optimize their shipping routes and tackle these challenges.

Target Adapts Supply Chain Amid Global Uncertainty

Target Adapts Supply Chain Amid Global Uncertainty

Tim Hotze, Senior Vice President of Target, shared the company's supply chain strategies at the SMC3 Connections conference, addressing uncertainties in global trade and tariffs. His insights included diversifying global sourcing, adopting flexible manufacturing strategies, and integrating transportation planning with product design, highlighting how to maintain competitiveness amidst changes.