Sea-air shift and diverse trade fuels August air cargo demand

Sea-air shift and diverse trade fuels August air cargo demand

By Rebecca JeffreyRebecca Jeffrey30 September 2025

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Global air cargo volumes were driven by a sea-to-air modal shift and route diversions away from North America as shippers navigate evolving US tariff policies

Jaromir Chalabala/ Shutterstock 2/03/2022

Photo: Jaromir Chalabala/ Shutterstock

August marked the sixth consecutive month of year-on-year growth for the air cargo market, helped by a sea-air shift and growth away from North America in the face of US tariffs.

Total demand, measured in cargo tonne-km (CTK), rose by 4.1% compared with August 2024 levels, said IATA.

Although growth slowed from the 5.5% rise in demand seen in July, IATA noted that “cargo demand still shows resilience in a challenging global economic context”.

Meanwhile, capacity, measured in available cargo tonne-km (ACTK), increased by 3.7% compared to August 2024. As a result, the load factor level improved by 0.2 percentage points year on year to 44.2%.

Willie Walsh, IATA’s director general, said: “Air cargo demand grew 4.1% in August, marking the sixth consecutive month of year-on-year growth. Volumes continue to grow even as global trade patterns change.

“Air cargo has benefited from a shift from sea for some high-value goods as shippers try to minimise the risk of tariff changes.  And growth patterns indicate some being diverted away from North America, fueling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes.

“This adaptability is vital as shippers navigate the evolving landscape of US tariff policy.”

The economic environment was broadly positive, but also reflected challenges. The global goods trade grew by 5.4% year on year in July and global manufacturing in August showed rising optimism in manufacturing PMI, with a rebound to 51.75, the strongest reading since June 2024.

Sentiment on new export orders, however, remains below 50 at 48.73, reflecting persistent caution amid tariff uncertainty. Jet fuel prices in August were also 6.4% lower year on year, marking the fourteenth consecutive month of year-on-year declines.

August 2025 air cargo market demand

Looking at regional performance, African airlines registered an 11% year-on-year increase in demand for air cargo in August, the strongest rise of all regions. Capacity increased by 12.3% year on year.

 

Unsurprisingly, Asia Pacific airlines saw a 9.8% demand growth and capacity increased by 6.9%. Other regions saw more modest growth. European carriers saw a 3.2% increase in demand, with capacity increasing 4.2%. Middle Eastern carriers saw a 2.7% demand increase and capacity increased by 4.3%.

Latin American carriers saw a 2.1% increase, while capacity increased by 5%.

North American carriers saw a 2.1% decrease, the worst performance of all regions. Capacity decreased by 1%.

Airfreight volumes in August increased significantly across most major trade corridors. Europe–Asia and within Asia posted robust double-digit growth, while Middle East–Asia, North America-Europe, and Africa-Asia also saw notable gains.

In contrast, Asia–North America, Middle East–Europe and within Europe recorded declines.