As we approach the peak holiday season and look ahead to 2025, we want to inform you of the tight air cargo market conditions and how Phoenix International is here to support your logistics needs.
Current Market Challenges
The global air cargo market faces significant capacity constraints due to:
- Limited Capacity Growth: Passenger aircraft additions have slowed, new freighter supply is limited, and aircraft production delays persist.
- E-commerce Surge: Demand, especially from Asia, continues to rise at 20% annually, shifting capacity to high-demand regions and leaving fewer options for other markets.
- Elevated Costs: Spot rates have surged—up 49% year-on-year from Asia to the U.S. and 25% to Europe—reflecting strong demand and tight availability.
- Reallocation of Routes: Airlines are prioritizing Asia-focused routes, reducing capacity between the U.S. and Europe.
How Phoenix International Can Help
We understand the importance of uninterrupted logistics for your business and are ready with solutions:
- Secured Capacity: Early space booking through our strong carrier partnerships.
- Tailored Alternatives: Optimized routing and multimodal solutions to manage costs and timelines.
- Competitive Rates: Ongoing negotiations to reduce shipping expenses.
- Visibility: Real-time tracking through our advanced digital systems.
Your Next Steps
To minimize disruptions during this period:
- Share your shipping forecasts with us as early as possible.
- Be open to alternative routes or modes of transport.
- Stay connected with our team for updates and guidance.
We are committed to supporting your business and ensuring your supply chain remains resilient. Contact your Phoenix International representative today for tailored advice and solutions.
Thank you for trusting us to navigate these challenges together.
