Hey folks, welcome back to News in Brief by XMAE Logistics. I'm your host, and this week we're diving into three key stories shaping the global logistics landscape: the ripple effects of America's trade policies, the surprising trends in airfreight, and how container lines are fighting to retain market share. Let's break it down.
America First: Trade Shifts and Their Impact
The "America First" policy continues to reshape global trade, and the numbers tell the story. Recent U.S. tariff adjustments and the cancellation of low-value parcel exemptions have hit trans-Pacific air cargo hard. For example, in May 2025, China's low-value exports to the U.S. plummeted by 39% year-on-year.
Here's what's happening:
Airfreight volumes on key routes like China-U.S. dropped by 26% in early May, with some carriers reporting up to 30% capacity cuts.
Major airlines, including Atlas Air and China Southern Airlines, saw their capacities on these routes shrink by 28% and 30%, respectively.
While this sounds like all bad news, it's also creating opportunities for regional trade shifts. Some freight is rerouting through Southeast Asia, and logistics players are adapting with new pathways.
The takeaway? Flexibility and diversification are no longer optional-they're essential.
✈️ Airfreight Peak: E-Commerce Keeps Flying High
If you thought e-commerce was slowing down, think again. Despite broader economic headwinds, air cargo remains a bright spot, thanks largely to cross-border e-commerce.
Here's the latest:
Global air cargo volumes grew by 14.6% in the first half of 2025, with international routes leading the charge at 23.4% growth.
International cargo now accounts for 42.6% of total airfreight, a 10-point jump since 2019.
Airlines and logistics providers are responding by launching 117 new international routes in 2025 alone, with Asia and Europe dominating the expansion.
But there's a catch:
E-commerce giants are increasingly controlling the supply chain, with some even becoming direct operators. For logistics providers, this means adapting to a landscape where end-to-end services-from warehousing to last-mile delivery-are the new norm.
Liners' Market Share: The Battle for Relevance
Container shipping lines aren't sitting still. As airfreight gains traction for high-value, time-sensitive goods, ocean carriers are fighting to retain relevance. While our focus today is primarily on air cargo, the interplay between sea and air logistics is worth noting.
Key insights:
The global shift toward regionalization is pushing liners to optimize routes and improve reliability.
Some players are exploring multimodal strategies, combining sea freight for cost efficiency with airfreight for urgency.
Why This Matters for Shippers
For businesses moving goods globally, here's the bottom line:
Diversify Trade Routes: Don't rely solely on traditional corridors like China-U.S. Explore emerging hubs in Southeast Asia and Europe.
Leverage Data: Stay ahead of policy changes and demand shifts with real-time insights.
Emend-to-End Solutions: Partner with logistics providers who can offer integrated services, from origin to destination.
That's all for this week's News in Brief. If you enjoyed this episode, subscribe to our podcast for weekly updates, and don't forget to share it with your team. For more insights, visit xmaelogistics.com.
Stay agile, and see you next time!
