Global Air Freight Companies Navigate Shifting Trends in 2025

Introduction

As we look ahead to 2025, the global air freight industry is poised for significant changes. Recent insights from industry experts reveal a complex landscape shaped by geopolitical events, changing consumer behaviors, and evolving business strategies. At FreightAmigo, we're closely monitoring these trends to ensure our digital logistics platform continues to meet the evolving needs of our clients. Let's explore the key trends that are set to impact global air freight companies in the coming year.

Trend #1: Air Freight Reaches Its Peak

The air freight industry has experienced a surge in demand due to recent disruptions in ocean freight, particularly the situation in the Red Sea and potential strikes. However, experts believe this boost may have reached its peak. Niall van de Wouw, Chief Airfreight Officer at Xeneta, notes:

"The Red Sea situation and potential strikes are a boon for air freight, and we expect that to continue. However, we think the Red Sea situation has plateaued, and the premium or the boost that it has given to air freight has reached its peak."

This observation suggests that while air freight has benefited from ocean freight disruptions, the market may be stabilizing. As a digital logistics platform, FreightAmigo is well-positioned to help our clients navigate these changes, offering real-time comparisons of door-to-door freight quotes for various transportation modes, including air freight.

Trend #2: Demand Outpaces Supply

One of the most significant challenges facing global air freight companies in 2025 is the imbalance between supply and demand. Thomas Kempf, Flexport's Senior Director of Global Air Freight, projects that air cargo capacity will grow by a maximum of 4% to 5%, while demand is expected to rise by 6% to 10%, depending on the trade lane.

Key regions to watch include:

• China
• The Indian subcontinent
• The Middle East
• Vietnam

These areas are particularly important in relation to EU markets. The ongoing Russia-Ukraine conflict has forced some European carriers to cut back or suspend their China routes, as they can no longer fly over Russian airspace. This situation has created a competitive advantage for Chinese carriers, who can still use Russian airspace.

Adriaan den Heijer, Executive Vice President of Cargo at Air France-KLM, predicts: "I think most European carriers will shift belly capacity away from China." This shift is expected to benefit Chinese airlines in 2025, allowing them to offer more competitive space and rates on Europe-to-Asia routes.

At FreightAmigo, we understand the importance of adaptability in the face of such changes. Our digital logistics platform allows clients to compare and book air freight solutions from a wide range of carriers, ensuring they can find the most efficient and cost-effective options despite market fluctuations.

Trend #3: Airlines Adapt to Shifting Consumer Demands

The air travel industry has undergone significant changes since the COVID-19 pandemic, with a notable shift in the mix of business and leisure travel. Van de Wouw observes:

"The mix of business and leisure travel has changed significantly. Corporate travel all over the world has gone down since COVID-19 due to numerous reasons, but leisure travel, especially the high-yielding leisure travel, has gained momentum."

This shift is creating a structurally different network mix for passenger airlines and passenger-cargo airlines compared to pre-COVID times. In 2023, more than 4,000 completely new routes were introduced globally, accounting for 6.3% of total routes. Notably, 81% of these new routes (around 3,400) were designated for regional travel, reflecting a focus on domestic and regional connectivity.

As a digital logistics platform, FreightAmigo is well-equipped to help our clients navigate these changes in airline networks. Our comprehensive tracking system, which connects with more than 1000 reputable airlines and shipping lines, ensures that clients can monitor their shipments' status anytime, anywhere, regardless of the evolving route structures.

Trend #4: Evolving Air-Centric Models in E-commerce

E-commerce continues to be a major driver of air freight demand, particularly in Asia-Pacific markets. Kempf notes that this region will account for 80% of the projected $36 trillion global B2B e-commerce market by 2026, with expected growth of 20-25% in 2025 alone.

However, potential changes to de minimis regulations in the United States could significantly impact the e-commerce landscape. Kempf anticipates an accelerated shift from air-centric models (90% air freight) to a 60%-40% blend of direct fulfillment and forward stock for major e-commerce players between 2025 and 2027.

This shift presents both challenges and opportunities for businesses involved in cross-border e-commerce. FreightAmigo's digital logistics platform is designed to support this transition, offering comprehensive solutions that include customs clearance, cargo insurance, and trade finance – all accessible through a single, integrated platform.

Preparing for the Future: Strategies for Success

As the air freight industry evolves, businesses must adapt to stay competitive. Here are four key strategies recommended by industry experts:

1. Prioritize Supply Chain Agility and Diversification

In an ever-changing global landscape, supply chain flexibility is crucial. Businesses should be prepared to relocate parts of their supply chain to regions that better align with their needs. FreightAmigo's digital platform supports this agility by providing access to a diverse network of logistics providers and solutions.

2. Optimize Inventory Management

Successful businesses excel at adjusting their inventory strategies to match demand patterns and market conditions. Whether through stockpiling or just-in-time logistics, effective inventory management is key to staying ahead of the curve. FreightAmigo's real-time tracking and analytics tools can help businesses make informed decisions about their inventory strategies.

3. Leverage Free Trade Zones

Free trade zones offer significant advantages in complex trade environments. By exploring these zones, businesses can reduce costs and improve operational efficiency. FreightAmigo's expertise in international logistics can help clients navigate the complexities of free trade zones and maximize their benefits.

4. Maximize Duty Drawback

In the United States, duty drawback programs allow businesses to reclaim tariffs on goods that are re-exported. Taking full advantage of these programs can help mitigate tariff-related costs and improve overall profitability. FreightAmigo's comprehensive customs clearance services can assist clients in navigating these programs and optimizing their duty drawback strategies.

Conclusion

As we approach 2025, the global air freight industry faces a landscape of both challenges and opportunities. From shifting consumer demands to evolving e-commerce models, businesses must be prepared to adapt quickly to stay competitive. At FreightAmigo, we're committed to providing the digital logistics solutions that will help our clients navigate these changes successfully.

Our comprehensive platform offers everything from real-time quote comparisons and booking to shipment tracking, customs clearance, and trade finance – all designed to streamline your logistics operations and enhance your supply chain agility. As the air freight industry continues to evolve, FreightAmigo remains dedicated to fostering innovation and delivering exceptional value to our clients.

Are you ready to take your logistics strategy to new heights? Contact FreightAmigo today to learn how our digital logistics platform can help you prepare for the emerging trends in the air freight market and beyond. Together, we can transform the way you experience logistics and unlock new opportunities for growth in the dynamic world of global trade.