By Maria Kalamatas | July 25, 2025
Section: International / Air Freight & Market Trends
Singapore, July 25 — Forwarders across Asia are reporting tighter air cargo capacity as seasonal demand from retail, electronics, and pharmaceutical sectors drives load factors to their highest levels of the year, pushing up spot rates on key export lanes.
“Flights are selling out faster than we can book them,” said Kelvin Ong, regional air freight manager at a Singapore-based logistics company. “We’re seeing demand grow 20 percent above July’s typical averages, and capacity is just not keeping up.”
Rates rise as space shrinks
Spot prices on lanes to North America and Europe have risen by 10 to 12 percent since mid-July, driven by heavy pre-holiday shipments and constrained freighter availability. Airlines are adding passenger aircraft belly space to offset the pressure, but forwarders say it’s not enough.
“Even with extra belly lift, booking windows are closing days earlier than normal,” Ong explained. “Shippers with time-sensitive cargo are paying premiums to secure space.”
Alternatives considered
Some exporters are shifting low-margin cargo to hybrid sea-air routes via the Middle East, while others are staggering shipments to avoid peak rate spikes.
“Clients are balancing speed and cost in every decision right now,” Ong said. “There’s no single solution — just creative planning.”
